How To Become An Enrolled Agent

An individual can become an EA if he has worked for the IRS for five years, or if he has taken the Special Enrolment Examination, which consists of three parts. The first part consists of questions on tax codes for individuals, the second part on tax codes for business entities, and the last part on Circular 230 and the Treasury Department guide. A Certified Public Accountant should have a vast knowledge of accounting, auditing, business law, personal finance and taxes. On the contrary, an Enrolled Agent has to be knowledgeable about taxes, as this is the specialty area of an EA. An enrolled agent is a tax professional who is given permission to represent taxpayers before the Internal Revenue Service.

• If you choose this method, be sure to read the instructions for Form W-12 Opens in new window carefully to avoid any delays in getting your PTIN.
• Enrolled Agents, along with Attorneys and CPAs, are the only tax professionals with unlimited representation rights, meaning they can represent any client on any matter before the IRS.
• With this professional freedom, you can further solidify your understanding of complex tax issues and have the experience to prove it.
• You can take this exam in hundreds of national and international locations at a Prometric testing center.

For example, several Becker CPE courses are ideal for Enrolled Agent CE, and I even have discounts available. Additionally, you will have to wait a little longer to finish the process. Once you’ve found the right course for you, save on your EA exam prep by using my https://www.bookstime.com/articles/how-to-become-an-enrolled-agent enrolled agent course discounts. Instead, you will provide your PTIN when you schedule an EA exam testing appointment, and you will be allowed to make the appointment because you have a PTIN. Receiving and maintaining the enrolled agent designation is not free.

How Do I Become an Enrolled Agent?

Enrolled agents first appeared in 1884 due to issues arising with Civil War loss claims. Since the tax code was new, and quite complex, the role of the EA designation https://www.bookstime.com/ expanded to include tax-filing preparation. When the IRS (Internal Revenue Service) began increasing its auditing practices, the EA role expanded even more.

• The IRS has a list of Enrolled Agent exam international testing dates and locations Opens in new window on their website.
• Do you believe in holding to the highest ethical standards possible?
• The enrolled agent (EA) designation is a distinctive title that enhances the careers of accountants and professionals intending to specialize in tax.

Thus the role needed more oversight and regulation from current and former irs employee(s). The Treasury Circular 230 was written to replace the Horse Act. Professionals who help clients with taxes may benefit from becoming enrolled agents (EAs). The IRS empowers EAs with tools unavailable to most other tax preparers.

Steps to becoming an enrolled agent:

Non-exempt persons must take and pass the Special Enrollment Examination (SEE). All enrolled agents must complete 72 hours of continuing education every 36 months. CPAs and attorneys may serve as enrolled agents without taking the exam.

Enrolled agents are required to prove their proficiency in every aspect of taxes, ethics, and representation, unlike CPAs and attorneys, who may not specialize in taxes. The Enrolled Agent examination consists of 3 separate parts that you can take in any order. When you take the exam, you will see 15 questions that you didn’t study. Those questions are likely experimental and don’t count towards your score, so don’t get discouraged. University Headquarters (UniversityHQ) is your #1 resource for finding top rated colleges, scholarships, potential salaries and helping you find the right career.

Once you become an enrolled agent you must:

This is true even if the EA did not preparer the tax return involved. Enrolled agents are given the authority to prepare tax returns, advise and represent individuals, estates, corporations, partnerships and trusts. EAs are experts who keep up with the ever changing area of taxation. EAs are therefore effectively able to represent persons who are audited by the IRS. EAs are required to show they are competent in tax laws before they can represent a tax payer before the IRS.

You may use a single EA to submit tax returns in multiple states. EA applicants must either pass a three-part SEE or have five years of IRS experience in a tax-related field. Enrolled Agents and CPAs are trained, experienced professionals who are held to high ethical standards. Enrolled Agents must complete 72 hours of continued education every three years. Each year, a minimum of 16 hours must be obtained, of which two must be on ethics. Apply for the Special Enrollment Examination (SEE), administered by a third-party contractor.

Simple License Requirements

They also have a code of ethics and rules set out by NAEA for its members. They are authorized to counsel and prepare tax returns for individuals, estates, and corporations and represent them in front of the Internal Revenue Service. EAs have an extensive understanding of all things tax-related. They can help with information on inheritance tax, income tax, tax returns, tax planning, IRS or state representation, and others. Check the SEE candidate information bulletin, answer sample exam questions, and use other references for the test preparation.

Outside of standard tax prep, you and your client will also enjoy client-EA confidentiality. The job of an enrolled agent is to advise, represent and prepare tax returns for individuals, corporations and trusts. Adding this useful certification to your resume could be a great accounting career move. An enrolled agent is an individual who is certified to represent taxpayers before the Internal Revenue Service. Some examples of enrolled agents include certified public accountants and lawyers.