Thinking about becoming an enrolled agent? If you’re looking to build a career in tax or want to start your own tax business, becoming an EA is a solid choice.
EAs are federally authorized tax pros who can represent taxpayers in front of the IRS on just about anything. And with more than half of Americans saying the federal tax system is too complicated, there’s a huge demand for people who actually understand it.
I’ll break down everything you need to know about becoming an EA—from the basic requirements to passing the IRS Special Enrollment Exam (SEE). Let’s dive into how to become an enrolled agent in just a few steps.
Key Takeaways
- Meet Requirements: Obtain a PTIN, ensure your taxes are in order, and pass an IRS suitability check.
- Pass the SEE Exam: Complete the three-part Special Enrollment Examination covering individual and business taxation and IRS representation.
- Prepare Strategically: Use review courses, practice exams, and a solid study plan to tackle the SEE efficiently.
- Apply for Enrollment: Submit Form 23, pay the $140 fee, and pass the IRS background check to earn your credential.
- Maintain Certification: Complete 72 hours of continuing education every three years to keep your EA status active.
Why Become an Enrolled Agent?
Before we get into the nitty-gritty, let’s talk about why becoming an EA is worth it.
- Unlimited Representation Rights: As an EA, you’re in an elite group of tax pros who can handle any tax situation for anyone, anywhere in the U.S. Unlike tax preparers or even some CPAs, there are no restrictions on the type of cases you can take or the clients you can represent.
- Competitive Advantage: Having “EA” after your name tells clients and employers that you’re the real deal when it comes to tax law and compliance. It’s a badge of expertise that can help you build trust and stand out in a crowded field.
- Flexibility: The EA designation lets you design the career you want. Work for a big firm, consult on your own terms, or launch your own tax business—it’s all on the table. You’re not boxed into a single path.
- Career Development: Whether you’re new to taxes or already in the field, becoming an EA takes your skills and opportunities to the next level. It’s not just a certification; it’s a career booster that opens doors to higher-paying roles and more responsibility.
- Job Security: Taxes aren’t going away, and with the ever-changing tax laws, your expertise as an EA will always be in demand. It’s a career built for stability in an unpredictable world.
- Client Impact: Beyond the credentials, being an EA lets you truly help people—whether it’s solving tax problems, saving them money, or giving them peace of mind when dealing with the IRS. It’s work that matters.
Step 1: Meet the Basic Requirements
Becoming an EA doesn’t require a college degree, but here’s what you’ll need to get started:
- Preparer Tax Identification Number (PTIN): Think of this as your tax pro ID. To legally prepare tax returns for clients, you’ll need to apply for a PTIN through the IRS. It’s a quick process, but it’s a must-have to get in the game.
- Personal Tax Compliance: Before you dive into helping others with their taxes, make sure your own are in order. The IRS will check that you’ve filed all your required tax returns and resolved any outstanding balances. Consider this your chance to walk the talk.
- Pass a Suitability Check: The IRS will run a background check to ensure there’s nothing in your history—like criminal activity—that could raise red flags. It’s all about showing that you’re trustworthy and ready to handle the responsibility of being an EA.
- Commitment to the Process: While you don’t need a degree, you’ll need focus and determination to pass the Special Enrollment Exam and complete the application process. It’s not hard to start, but you have to put in the work to succeed.
Step 2: Understand the Special Enrollment Examination (SEE)
The SEE is the main event on your journey to becoming an EA—a challenging three-part test that assesses your expertise in tax law, tax preparation, and IRS representation. It’s your chance to prove you’re ready to handle anything the tax world throws your way.
What’s Covered in the SEE?
The SEE is divided into three sections, each focusing on a key area of tax knowledge:
- Individual Taxation: This section dives into personal tax returns, covering topics like income reporting, tax credits, deductions, and filing statuses. If you’ve ever prepared a 1040, you’ll recognize a lot of the material here—but don’t underestimate it.
- Business Taxation: From corporate and partnership taxes to payroll taxes and depreciation rules, this part is all about the tax issues businesses face. Whether it’s small businesses or large corporations, you’ll need to know how the rules apply.
- Representation, Practices, and Procedures: This section tests your knowledge of what it takes to represent taxpayers before the IRS. It covers ethics, communication, handling audits, and navigating appeals processes.
How the SEE Works
- You can take the three parts in any order, but keep in mind that each one requires a separate registration and fee.
- You’ll need to pass all three within two years to qualify for your EA credential, so plan your study schedule accordingly.
- Each section has a mix of multiple-choice questions, so time management and preparation are critical.
Step 3: Prepare and Schedule for the Exam
Here’s where the work begins. The SEE is challenging, but with the right preparation, you can pass it.
Tips for Success
- Invest in an EA Review Course: A good EA prep course provides structured lessons, practice tests, and an overview of the exam format. Save with enrolled agent course discounts.
- Take Practice Exams: These help you get comfortable with the test format and identify the SEE areas where you need improvement.
- Stick to a Schedule: Consistency is key. Aim to dedicate a few hours each week to studying.
- Know the Candidate Information Bulletin (CIB): The IRS provides this guide with detailed information about test topics, rules, and test day procedures.
Once you feel prepared, it’s time to schedule your exam. Here’s what you need to know:
- Examination Appointment: Schedule your test online through the IRS’s official testing partner. You’ll choose your test center, date, and time.
- Test Fee: The fee is $259 per part or $777 for all three parts, so budget accordingly.
- Test Window: The SEE is available from May 1st through the last day of February each year. Use this window to plan your exam schedule.
- Test Day Tips: Bring a government-issued ID, arrive early, and follow all test center regulations.
After completing each section, you’ll receive a score report. A passing score is 105 or higher, with possible scores ranging from 40 to 130.
Step 4: Apply for Enrollment
Once you pass all three sections of the SEE, the finish line is in sight. Here’s what’s next:
- Submit Form 23: This is the application to become an enrolled agent. You’ll find it on the IRS website.
- Pay the Enrollment Fee: As of now, the fee is $140.
- Pass the Suitability Check: The IRS will review your tax compliance and conduct a background check.
Once approved, you’ll officially earn your EA designation!
Step 5: Maintain Your EA Status
Your journey doesn’t end after earning the credential. Maintaining your enrolled agent status requires ongoing effort.
Continuing Education
The IRS requires EAs to complete 72 hours of continuing education every three years, including two hours of ethics training annually. This ensures you stay updated on tax law changes and maintain your competitive edge.
Why Becoming an EA Is Worth It
Earning your EA credential is a smart move if you’re serious about tax matters and career growth. Whether you’re a seasoned tax preparer or just starting out, the EA designation opens doors to new opportunities and gives you the federal authorization to represent clients with confidence.
Plus, think about the flexibility—you could start your own business, work from home, or represent clients across the country. It’s a career path with incredible potential.
Final Thoughts
Becoming an enrolled agent takes effort, but it’s a rewarding journey. By following these steps, preparing for the SEE, and maintaining your EA status, you’ll build a career that’s both fulfilling and financially rewarding.
So, are you ready to take the plunge? Start by getting your PTIN, study hard, and don’t forget to celebrate when you achieve that EA credential—you’ve earned it!
FAQs
This three-part test evaluates your understanding of individual and business tax laws, along with IRS representation processes. Passing all three sections is required to become an enrolled agent.
No, a college degree is not required. A high school diploma or equivalent is all you need to qualify.
The exam fees are $259 per section, and the enrollment fee is $140. Factor in costs for study materials and review courses as well.
Most people complete the process in 6-12 months, and sometimes much faster, depending on how quickly they study and pass the exam.
You can retake any section of the EA exam. There’s no limit on attempts, but you’ll need to pay the test fee for each retake.
The difference between an EA and a CPA is that an EA specializes in taxes and has unlimited IRS representation rights, while a CPA offers broader services like accounting, auditing, and financial reporting, with limited tax representation unless they focus on taxation.
Becoming an EA is challenging but achievable with proper preparation. The SEE has a reputation for difficulty due to its in-depth focus on tax laws and representation, but many candidates pass with dedicated study and practice.
Yes, you can become an EA with no prior experience. The only requirements are passing the SEE and meeting the IRS’s background and tax compliance standards.
Most candidates spend 100-150 hours studying for all three parts of the SEE, which breaks down to about 4-6 weeks per section. With consistent effort, the entire exam process can be completed within 6-12 months.
To become an enrolled agent, you need a PTIN, pass the three-part SEE exam, and submit Form 23 to the IRS. The IRS will conduct a background check to ensure your tax compliance and suitability. Once approved, you’ll receive your EA credential.
Start by choosing a quality EA review course like Gleim or Surgent to guide your study plan. Dedicate time each week to focused study, practice with timed exams to pinpoint weaknesses, and use IRS resources like the Candidate Information Bulletin to align with test expectations. Consistent effort and targeted practice are key to passing.
