Entry-level candidates, who are mainly practitioners, may earn around $52,000 annually, and focus primarily on tax returns. The mid-level professionals may earn a little more than the above, which may again go up to $80,000 per year. However, senior-level professionals have a very lucrative pay scale, which may go up to $132,000 annually. But a minimum of five years of experience is required for this kind of salary structure, which comes with huge responsibility. Enrolled agents are the only tax professionals who do not require a state license. However, they have a federal license and can represent a taxpayer in any state.
Key Features of the Enrolled Agent Exam Syllabus
NAEA members are also bound by a Code of Ethics and Rules of Professional Conduct of the Association. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. Enrolled Agents are the only federally authorized tax practitioners who specialize in taxation.
As a member of the NAEA, you can take advantage of exclusive partner discounts, giving you access to essential tools at more affordable rates. As an EA, you hold a prestigious designation that sets you apart in the tax industry and positions you as a trusted advisor. Starting your own tax practice is not only a viable career path but also an opportunity to make a meaningful impact in the lives of your clients.
The digital study materials are available as an online subscription, while the hardcover study materials have a CD-ROM of practice questions and audio files. However, even after clearing the above, the agent must renew their status every three years. They also need to meet the continuing education requirements, which should be 72 hours every 3 years or 16 hours every year. They should review their credit chart frequently and keep updated contact information. Enrolling in the EA course at ArivuPro provides students with expert faculty, comprehensive study materials, and interactive classes. ArivuPro also offers regular mock tests, personalized mentorship, and a supportive learning environment to ensure students are well-prepared for the exams and have a strong foundation for their EA journey.
Continuing Education and Certification
To obtain the enrolled agent status through IRS experience, candidates must submit an application with detailed information on their work experience. A necessary and crucial step is to pass a suitability check, which includes a enrolled agent background check. The application process involves filling out and submitting Form 23 with a $30 fee. An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service. An enrolled agent is a federally licensed tax practitioner who has unlimited rights to represent taxpayers before the IRS for any issues relating to collections, audits, or tax appeals. Enrolled Agents and Certified Public Accountants (CPAs) both possess expertise in taxation and can represent taxpayers before the IRS.
- “Enrolled” means to be licensed to practice by the federal government, and “Agent” means authorized to appear in the place of the taxpayer at the IRS.
- I suggest that you start studying before you schedule your first exam date.
- Congress took action to regulate EAs to prepare Civil War claims and represent citizens in their interactions with the Treasury Department.
- Their advisory services are recognized throughout the US and are very comprehensive.
- In general, any criminal offense resulting in a felony conviction under federal tax laws or a felony conviction related to dishonesty or a breach of trust, that is less than ten years old.
Enrolled Agents, accountants, and attorneys must work alongside the Practitioner Priority Service® (PPS) to ensure the proper handling of tax matters. They are also required to follow authentication procedures when communicating with the IRS on behalf of their clients. In addition to tax knowledge, candidates must undergo a background check to ensure their integrity and trustworthiness.
How do you become an enrolled agent? (updated Oct. 27,
They must abide by the specifications of the Treasury Department’s Circular 230, which provides the guidelines governing enrolled agents. Enrolled agents that have an NAEA membership are also subject to a code of ethics and rules of professional conduct. Yet, state boards of accounting grant the CPA license, while the federal government grants the EA certification. For this reason, the tax expertise of enrolled agents is acknowledged at a national level. Department of Treasury grants an EA with unlimited representative rights before all administrative levels of the IRS once the individual meets the EA requirements and passes the EA exam.
How do you determine if a person passes or fails? What is the passing score? (reviewed Oct. 19,
They must pass the necessary exams, follow strict authentication procedures, and adhere to the highest standards of practice to protect their clients’ interests. The IRS Restructuring and Reform Act of 1998 allow federally authorized practitioners (those bound by the Department of Treasury’s Circular 230 regulations) a limited client privilege. This privilege allows confidentiality between the taxpayer and the enrolled agent under certain conditions. The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters. This privilege does not apply to state tax matters, although a number of states have an accountant-client privilege. The job levels for enrolled agent status are entry, mid-level, and senior level.
- As for occupational duties, enrolled agents are empowered to represent American taxpayers before the IRS on matters such as collections, tax appeals, audits, and any other tax issues.
- You will need to remove the lid/cap for visual inspection by the Test Center staff.
- The exam duration for this part is also 3.5 hours, with 100 multiple-choice.
CPAs and attorneys may serve as enrolled agents without taking the exam. In summary, becoming an Enrolled Agent requires a strong tax knowledge base, a clean background check, obtaining a PTIN, and successfully passing the SEE. This prestigious credential signifies the individual’s expertise in tax matters and their ability to effectively represent clients before the IRS. Before candidates can take the SEE and apply for enrollment, they must first obtain a Preparer Tax Identification Number (PTIN).
The enrolled agent profession began after fraudulent claims were submitted for Civil War losses. Congress took action to regulate EAs to prepare Civil War claims and represent citizens in their interactions with the Treasury Department. In 1884, the Horse Act was signed into law by President Chester Arthur to establish and standardize enrolled agents. To get the most accurate impression of your familiarity with the exam content, you must use an enrolled agent course. An EA review course will also help you deepen your knowledge of the material to be completely prepared to pass.
Other Exams
A complete list of test center rules can be found in the Candidate Information Bulletin at Prometric. In general, any criminal offense resulting in a felony conviction under federal tax laws or a felony conviction related to dishonesty or a breach of trust, that is less than ten years old. Our mission is to demystify the exam prep process , one candidate at a time. According to the National Association of Enrolled Agents, there are over 50,000 enrolled agents in the United States and other countries.
Role of Enrolled Agents in Tax Representation
In addition, achieving an EA designation allows you to represent clients before the IRS legally and brings significant financial rewards, making this test worth taking. 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. Individuals with EA designations are required to earn 72 CPE hours every three years, use an IRS-approved continuing education provider, and review the enrolled agent CPE credit chart.
