Who is Enrolled Agent?
Enrolled Agent (EA) is a licensed tax advisor by the federal level by the Internal Revenue Service (IRS), who is representing taxpayers for taxes issues including audits, collections, and appeals.
What Enrolled Agent Do?
The Enrolled Agent profession appeared after fraudulent claims were submitted for Civil War losses. EA is the highest credential the IRS awards. So, EA provides you with unlimited authorized practice rights to advise, represent, and prepare tax returns for individuals, partnerships, corporations, and any entities with tax-reporting requirements. EA may perform the same tasks as an Attorney or CPA before IRS and U.S Government.
Enrolled Agent credential helps distinguish you in the business market. Also, it enhances your expertise in tax planning, tax preparation and various rules and regulations of taxes. According to the PayScale website, the annual salary of EA is from $30,338 – $75,777.
Also, Enrolled Agent can represent clients in other countries not just in the U.S.A. However, one of the requirements is passing the SEE exam. So you should prepare yourself for this exam through:
- Reviewing the Internal Revenue Code.
- Treasury Department Circular 230.
- IRS publications.
- IRS tax forms and their accompanying instructions.
- You can take the SEE test preparation courses in an approved center by IRS.
- Visit the IRS Tax Map which contains IRS forms, instructions, publications, and web pages and links that may be beneficial.
Enrolled Agent – EA exam consists of three sections that cover:
- The individual Section: It covers the topics of Tax Returns for the Individuals, Taxpayer Data, and Income and Assets.
- Business laws and Representation: It covers Business Entities, Business Financial Information, and Trust and estate income tax.
- Practices and Procedures: It includes the Practice before the IRS, Rules, and penalties, Power of attorney, Specific Types of Representation, and Building the Taxpayer’s Case
Enrolled Agent Requirements:
- You must obtain a Preparer Tax Identification Number (PTIN) and meet a suitability check.
- Then you must pass the three-part exam called the Special Enrollment Examination (SEE).
- Note that, EA does not need a college degree.
- Pass a tax compliance check to ensure that you have filed all necessary tax returns.
- If you have five years of taxation experience with the IRS, you can apply to be an Enrolled Agent without taking the exam.
Enrolled Agent – EA Exam Details:
- Exam fees: $181.94 fee per part.
- EA exam administration: by computer at Prometric test centers.
- EA-SEE exam is three sections, and each section consists of 100 multiple-choice questions. (85 questions are scored, and 15 questions not scored).
- Each part of the EA exam is 3.5 hours long. Also, Each of them may be taken 4 times per testing window.
- The passing score of the EA exam scale is from 105 or higher
- Enrolled Agent must obtain a minimum of 72 hours per enrollment cycle from an IRS-approved provider (every three years).
- Additionally, they must also gain a minimum of 16 hours of continuing education each enrollment year. (including 2 hours of ethics or professional conduct).