Steps to Become an Enrolled Agent in 2025

TABLE OF CONTENTS

1. What is an Enrolled Agent?
2. The Benefits of Becoming an EA
3. The Opportunities Beyond US Taxes
4. Steps to get an EA License
   3 Parts of an Enrolled Agent Exam
   Major Details about the Exam
   Enrolled Agent Exam Passing Score
5. Become an EA—6 Reasons Why
6. Do You have what it takes?
7. Conclusion
8. FAQs

WHAT IS AN ENROLLED AGENT?

The world we live in now is becoming more and more virtual. Furthermore, the upward trend of remote work means that many professionals are opting for more flexible careers. Being an enrolled agent is one of the flexible career options today. What is an enrolled agent?
An enrolled agent is a person who is licensed or given the privilege to represent taxpayers before the Internal Revenue Service in the USA. An EA has to pass an extensive three-part IRS exam that covers the tax returns of individuals and businesses or through one’s experience as a former IRS worker. What does it take to become an EA?
Of course, you need an EA certification to be qualified. Furthermore, before that, you need to take and pass the EA exams. EAs in the United States are federally licensed and can practice in any US state. Although it’s specifically for US tax, today’s global economy means you can also find a job almost anywhere, making EA the prime choice for tax advisors planning to transition to remote work.
Armed with an EA license, you can practice anywhere with more flexibility. The EA status is the highest that the IRS gives. EAs are considered elite individuals who should complete a 72-hour continuing education course every three years and adhere to ethical standards.

THE BENEFITS OF BECOMING AN EA

Earning an EA certification is considered as having a lucrative career as it commands a higher salary package. The following are the key benefits:

• Earning the Enrolled Agent certification gives one authority and global recognition to represent numerous clients and taxpayers before the Internal Revenue Services (IRS)
• You gain expertise in the taxation laws and system as you constantly practice your career representing taxpayers and dealing with various individuals and organizations. This will later on help you become a tax expert.
• Earning public trust, thus there is a big demand and trust for EAs far and wide.
• The EA enrollment cycle is not long. The course pretty much takes only around six months.

THE OPPORTUNITIES BEYOND US TAXES

The value of an EA license extends beyond US tax preparation. Several career options to take into consideration include the following:

1. Independent Practice

EAs with entrepreneurial skills and passion for client service could craft their own tax practices not only in the United States but in other countries as well, such as India. EAs could cater to a specific clientele, focusing on American citizens residing in other countries and US corporations operating in foreign countries. Building a successful practice requires robust marketing skillsets, offering tax advisory, preparation, and representation services as well as a commitment to stay updated on the latest tax developments.

2. FATCA Compliance

FATCA or the Foreign Account Tax Compliance Act mandates Indian financial companies to report on the financial transactions of US residents and citizens. Enrolled agents can leverage their in-depth knowledge and understanding of US taxation and regulations and reporting requirements to ensure compliance for these organizations. Moreover, Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) firms can benefit from having enrolled agents on their staff to ensure smooth compliance.

STEPS TO GET AN EA LICENSE

1. Obtain a Preparer Tax Identification Number (PTIN)

Here’s the process:

• Earning the Enrolled Agent certification gives one authority and global recognition to represent numerous clients and taxpayers before the Internal Revenue Services (IRS)
• You gain expertise in the taxation laws and system as you constantly practice your career representing taxpayers and dealing with various individuals and organizations. This will later on help you become a tax expert.
• Earning public trust, thus there is a big demand and trust for EAs far and wide.
• The EA enrollment cycle is not long. The course pretty much takes only around six months.

2. Schedule Test Appointments

Visit the SEE or Special Enrollment Examination webpage to schedule your test appointments. Furthermore, make sure to review the sample test questions, candidate information bulletin, and other resources to prepare you for the EA exams.

3. Suitability Test Pass

Passing the suitability check ensures tax compliance when filing returns. There should also be no criminal record for the individual.
The EA certification should be renewed every three years. The following are steps for the renewal of active agents:
–  Accomplish 72 hours of Continuing Professional Education (CPE) every three years. There should also be a 16-hour professional conduct every year. EAs should renew their PTIN from October 16 to December 31 of each year.
–  EAs can practice during the three successive EA enrollment cycle by preceding the renewal date.

3 Parts of an ENROLLED AGENT exam

• Individuals
• Businesses
• Representation, Practices, and Procedures

Major Details about the Exam

• Every part of the exam has around 100 questions, together with a few experimental questions that won’t be scored. Keep in mind, however, that you will not know which questions will count towards the score and which are included to gather statistical information on questions before being added to the exams.
• Results are scaled by calculating the number of questions with correct answers from the total number of questions asked. It will then be converted to a scale that ranges from 40 to 130.
• There are three multiple choice questions namely, direct question, incomplete sentence, and all of the following except.
• Test results are immediately available following the exam. Those who pass will be informed but won’t be informed of their score. Those who fail will be informed of their score. Furthermore, they’re also given a piece of diagnostic information to help them prepare for re-examination.
• Candidates who fail to pass a part of the exam after four attempts during the test window must wait until the next testing period before they can retake the exam.

The Passing Score
The scaled passing score set by the IRS is 105. This corresponds to the minimum knowledge level deemed acceptable. The exam scores are confidential and revealed only to the candidate.

Become an EA—6 Reasons Why

There are numerous reasons to become an Enrolled Agent.
Nowadays, there are numerous reasons to become an Enrolled Agent. Some may be looking to change their careers and becoming an EA is the perfect option. Others may want to boost their profitability or learn more about tax law. Below are 6 reasons why being an Enrolled Agent is for you.

Recession-Proof Security

It’s common knowledge that the two things certain in life are death and taxes. However, since taxes are a sure thing, so are enrolled agents’ jobs. As long as people pay taxes, there will always be work for an enrolled agent anywhere. Therefore, there’s an indefinite demand for EAs. Even during a recession, having an EA license helps you stay afloat. Not to mention the growing need for EAs in healthier economies.

Undemanding Requirements

An enrolled agent does not have to meet education requirements or experience, unlike a certified public account and others in the accounting field. You don’t need a specific degree or job to become an EA. Definitely, an EA certification opens doors to numerous career paths.

Career Versatility

There is a huge range of career options. One could work in different scenarios, such as accounting firms and government entities. Some may want to establish their tax consultancy firm.

Competitive Earning

In the United States, an enrolled agent could earn an average of $71K, which is more than their unenrolled counterparts. Your salary as a taxpayer is likely to grow the longer you stay in the tax profession. Nevertheless, earning an EA license that you can do in just six months could boost it by the same amount as earning years of experience.

Client Impact

An enrolled agent has an opportunity to make a remarkable difference in the lives of their clientele. EAs help individuals and companies resolve tax issues, save money, and achieve financial stability. One of the most rewarding aspects of being an enrolled agent is the positive impact on someone else’s financial well-being.

Ethical Standards

Enrolled agents are highly regarded because of the high ethical standards expected of them. They’re bound by Circular 230, a set of regulations that require EAs to act ethically and professionally while representing clients before the IRS at all times. The code of conduct instills credibility and trust on both clients and peers, which is paramount in the financial landscape.

Do You Have What It Takes?

There are specific attributes and qualities to become a licensed enrolled agent.

• Close attention to detail. The key to accuracy in tax matters is of course meticulousness. Enrolled agents must be meticulous in such a way that they should leave no stone unturned to provide clients with reliable and precise advice.
• In-depth IRS knowledge. A profound understanding of the Internal Revenue Service (IRS) rules and procedures is non-negotiable. An enrolled agent should be well-versed in tax laws and apply them to different situations in an effective manner.
• Stay updated. A commitment to staying updated on the ever-evolving tax code is paramount. Tax regulations and laws are changing continuously, and enrolled agents should stay informed and relevant about the latest updates.
• Interpersonal skills. As an EA, adeptness in working with people is essential. Enrolled agents typically work closely with clients to understand their financial scenarios and provide the solutions that best fit their requirements.
• Ethical commitment. The most important thing is being deeply dedicated to upholding ethical standards. Enrolled agents are held to high standards and thus, should always act in the best interest of the clients.

CONCLUSION

Becoming an EA offers a gateway to a fulfilling and dynamic career in today’s constantly evolving tax legislation scenario. With avenues that range from tax consultancy to corporate advisory and IRS representation, enrolled agents play a prominent role in deciphering the intricacies of tax regulations and tax laws. An EA exam registration is your first step to embark on the journey to become an enrolled agent and ensure a rewarding profession.

FAQs

Q. How do I prepare for the EA exam and are there study materials?

Ans. You may refer to the IRS Code, IRS publications, IRS tax forms, Treasury Department Circular 230, and their respective instructions. There are also references on the Internet and preparation courses.

Q. What tax law is the examination based?

Ans. All examination references are to the Internal Revenue Code, forms, and publications. Moreover, unless stated otherwise, all questions pertain to the calendar year 2023.

Q. What is the Enrolled Agent Course?

Ans. The EA course covers individual taxation, business tax laws as well as IRS representation practices. The comprehensive curriculum aims to arm students with taxation and tax procedures expertise.

Q. Why become an enrolled agent?

Ans. Enrolled agents have limitless representation rights. Furthermore, they can represent their clients before the IRS on any matter, such as appeals and audits.

Q. What is the time limit for each examination?

Ans. Each examination part takes three and a half hours. The actual seat time is four hours to enable a tutorial survey, as well as one 15-minute break.

Q. What are the negative aspects of being an EA?

Ans. Just like most things, there are also possible drawbacks to becoming an EA. First, there is a risk of liability for offering a bit of wrong advice, even if done casually. Second, a lot of people are not familiar with the designation of an EA and could mistake them for CPAs, which requires ethical clarification. Also, obtaining an enrolled agent status involves passing three exams and fulfilling yearly continuing education requirements.

Q. Does it take long to become an EA?

Ans. Becoming an EA takes about a year. Nonetheless, studying with a reputable institution could hasten the clearing of the enrolled agent exam within this timeframe. Normally, the official designation is awarded within ninety days of the enrollment application submitted and all three exam sections are passed successfully.

Q. What kind of jobs will Enrolled Agents in India get?

Ans. Enrolled agents in India could get different kinds of jobs in various fields, including:

• Accounting firms
• Tax advisory firms
• Independent tax consultants
• Corporate tax departments