Understanding tax return preparer credentials and qualifications Internal Revenue Service

Enrolled agents are federally authorized tax practitioners who have passed a rigorous competency exam, and can represent taxpayers before the IRS. In other words, an enrolled agent is someone you want on your side when dealing with the IRS. EAs are licensed tax professionals that can represent taxpayers before the IRS. Enrolled agents are required to abide by the provisions of the Department of Treasury’s Circular 230, which provides the regulations governing the practice of enrolled agents before the IRS. NAEA members are also bound by a Code of Ethics and Rules of Professional Conduct of the Association.

What’s tested on the EA exam?

Others may want to boost their earning potential or learn more about tax law. Below are compelling reasons why becoming an enrolled agent is for you. Peruse CPA certification requirements to learn about the education, experience, and exams you need to become a certified public accountant. If you pass an exam section, you will not receive a numerical score for that part. Instead, Prometric will evaluate your level of proficiency with the taxation concepts tested in that section. Each section tests your knowledge of taxation sub-domains, business taxation, and representation rights and procedures.

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Initially, during the boom times, a tightening up of the agent licensing exam is needed to limit the licensing of new agents to the most qualified, persevering and committed individuals. With any boom, the standards applied by real estate service providers diminish in quality and quantity, temporarily set aside to cash in on the increased sales and leasing. Less costly money becomes extra mortgage funds for buyers of property. However, the better borrowing power at lower mortgage rates is very quickly absorbed by sellers raising prices rather than buyers acquiring property with QuickBooks Accountant greater amenities.

• The IRS has a list of approved CE providers and some of them offer exam preparation courses.
• The Enrolled Agent exams are closed book with no access to any reference materials or electronic devices, including during breaks.
• Initially, during the boom times, a tightening up of the agent licensing exam is needed to limit the licensing of new agents to the most qualified, persevering and committed individuals.
• This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
• In other words, an enrolled agent is someone you want on your side when dealing with the IRS.
• Ultimately, EA exam Part 3 seems to be the easiest for most candidates.
• You have a three-month window at the end of each enrollment cycle to renew your designation.

How many parts to the enrolled agent exam?

Additionally, all our favorite EA review how many enrolled agents are there courses include unlimited enrolled agent practice exams. Enrolled agents have earned the privilege to represent taxpayers before the Internal Revenue Service or the IRS. Enrolled agents either pass a three-part comprehensive IRS test that covers business and individual tax returns or through experience gained as a former employee of the IRS or the Internal Revenue Service. The Enrolled Agent certification is the highest credential given by the IRS.

What Does the Special Enrollment Exam Cover?

When you register for the examination online or by phone, you will receive a list of available testing times, dates, and locations. You can then select a time and place to sit for one or more exam sections. If you register using Form 2587, you will receive scheduling instructions by telephone or mail. You will receive a notification from Prometric when your score report becomes available. The information in your report depends on whether you earned a passing score.

Representation Before the IRS

EAs will therefore always have a comprehensive and complete knowledge of everything relating to the IRS and taxation. NAEA members are held to a higher standard than the IRS’ minimum 72 hour continuing education requirement. NAEA members must complete 30 hours of IRS-approved continuing education hours each year (which would lead to a contribution margin total of 90 hours for each three-year EA enrollment cycle period). Because of the expertise necessary to become an enrolled agent and the requirements to maintain the license, there are only about 53,700 practicing enrolled agents. The IRS recommends using a tax preparer that is a member of a professional organization that offers continuing education and other resources, and holds members to a code of ethics.

IRS Exam Syllabus for Part 1

• If you follow the examination track, you can earn EA certification as soon as you pass all three sections of the SEE, which could take months with proper preparation.
• The EA certification opens up opportunities to work in various roles in different industry verticals, thus the earning potential is bright.
• Enrolled agents receive their license to practice from the United States Department of Treasury.
• To determine whether you qualify for the request, you must refer to Section 10.6(j) of the Treasury Department Circular 230.
• Along with the 2-hour ethics CPE EA, the 16 hours of enrolled agent continuing education credits that you earn each year must also include three hours of federal tax law updates and 10 hours of federal tax law topics.
• This is required unless they qualify after having worked for years of for the IRS, would certify the  the agent has proven competence in the areas of tax law.

Although the Special Enrollment Exam is difficult, there are many EA test prep programs to help you study. According to the Internal Revenue Service (IRS), an enrolled agent is a person who can represent a taxpayer before the agency. EAs may come from any profession, but most are accountants who deal with tax preparation.

Enrolled agents by degree level

This will give you enough time to complete all 100 questions, with 30 minutes extra to review your answers. After completing the first question, consisting of 50 questions, you’ll be prompted to take a 15 minute break. You’ll be able to leave the testing room and access your locker, the restroom, etc.

• Enrolled agents are trained to deal with complex tax problems and know the IRS taxation system inside and out.
• They are tax specialists, with their expertise focused solely on federal taxation.
• However, it’s important to note that not everyone who takes one exam part takes the other two, and the pass rates therefore can’t be reliably compared to one another.
• This means they can represent any taxpayer, including individuals, corporations, partnerships, and other entities, on any tax matter, including audits, collections, and appeals, in all IRS offices.
• Today, the number of active brokers continues to decrease, in search of a bottom since declining from the January 2010 peak of 109,500.
• When news media reports the rapid increase in pricing, the appearance of profits generates increased numbers of new DRE-licensed agents.

The enrolled agent logo is available for download in a black/white version and may be used in your marketing materials. Make sure that you qualify to take the exam before scheduling and paying a fee. Unlike many professional jobs, you don’t need a degree in a specific field of study—or a degree at all—so you can take the EA exam at any point. We have compiled a list of free EA Exam practice exams, resources, and study guides. I am the author of How to Pass The CPA Exam (published by Wiley) and the publisher of this and several accounting professional exam prep sites.

From 1884 through the early 20th century, this statute remained largely unchanged. The total number of Enrolled Agents is dynamic and can change due to several factors. New individuals become EAs each year by successfully passing the Special Enrollment Examination and completing the application process. Conversely, the number can decrease due to retirements, non-renewal of credentials, or disciplinary actions.