TABLE OF CONTENTS
- Introduction
- Enrolled Agent Exam Structure
EA Examination Structure - 10 Tips to Crack the EA Exam
How to Choose the EA Exam Course
Cost and Fees - Conclusion
- FAQs
INTRODUCTION
An Enrolled Agent is someone with unlimited rights to practice before the Internal Revenue Service. There is no restriction as to which taxpayers to represent before the IRS, which IRS office to represent clients in, and what tax matters to handle. The great thing about the EA designation is that you need not be a degree holder. What matters is that you have your PTIN and pass the exam.
ENROLLED AGENT EXAM STRUCTURE
Once you decide to pursue the reputable Enrolled Agent course and are about to proceed as an IRS-authorized professional, there are tips that could help you. Before that, it’s important to know the structure of the exam.
EA Examination Structure
- Part I – Individuals
Preliminary work with Taxpayer Data, consisting of 14 questions
Assets and Income with 17 questions
Credits and Deductions that consist of 17 questions
Taxation with 15 questions
Advising the Individual Taxpayer, comprised of 11 questions
Specialized Returns for Individuals with 12 questions - Part 2 – Businesses
Business Entities and Considerations, with 30 questions
Specialized Returns and Taxpayers that has 18 questions
Business Tax Preparation consisting of 37 questions - Part 3 – Representation, Practice, and Procedure
Practices and Procedures with 26 questions
Specific Areas of Representation that consist of 20 questions
Representation before the IRS consisting of 25 questions
Filing Process has 14 questions
The examination results are obtained by calculating the correct answers out of the total questions. Then, the number is converted to a scale, which ranges from 40 to 130. The cut-off passing score is 105. Applicants who qualify for a part of the exam could carry the score forward for up to two years from the qualification date for that particular part.
10 TIPS TO CRACK THE EA EXAM
These tips will help you get ready and crack the EA exam.
1. Defining your Goal
For long-term success, staying motivated is important. The money, effort, and time required to become an EA can sometimes be frustrating if you lose sight of what you will gain with the designation, and how it will help you achieve your goals.
2. Study Time
For business professionals, handling a full work/life schedule and finding extra study time is easier said than done. However, being fully prepared is paramount before sitting on your exam. Avoid last-minute studying and don’t risk having to take any part or parts of the exam again.
3. Position yourself with an EA Examination Review Partner
To pass the exam, studying for it could be the biggest hurdle and may overwhelm you at times. Where do you study and how to begin? It’s highly recommended to use an EA Exam review course to guide you and focus and fully prepare for the exam ahead.
4. Address one EA Exam part one at a time
Focusing a part of the exam one at a time helps lower your stress and boost your success capability. While you need not know the information on all three parts, you have three years to pass all exams. Study for one part and proceed to the others to avoid burnout and to make the process smoother.
5. Practice all Multiple-Choice question formats
All Enrolled Agent exam questions are multiple-choice. Nevertheless, there are three kinds of multiple-choice questions that you should prepare to answer.
6. Timing Yourself
To complete all 100 questions on each exam part, you are only allocated three and a half hours, plus an optional 15-minute break. The average is around 1.8 minutes per question, and an additional 30 minutes to review your answers.
7. Learn the Testing Landscape
Make it a point to know what to expect before you enter the testing facility. Read the testing rules and regulations to avoid facing surprises.
8. Get Plenty of Sleep before Exam Day
While you may feel the urge to study late into the night the day before your exam, don’t. Resist the temptation and get a good night’s sleep to help you focus, stay alert, and perform in the best way possible. Keep in mind, that studying in the weeks and months before the exam date will ensure that you avoid cramming the night before.
9. Get to the Testing Facility early
It’s advisable to arrive at the testing facility at least half an hour before the examination time. This way, you will have ample time to present your identification, put your things in the locker, and be ready to test without feeling stressed and rushed.
10. Stay Calm and Confident
It’s understandable to be nervous. Nevertheless, keep in mind that nerves and stress will just hinder your performance. Moreover, if you have prepared well, you can be confident that you’re fully ready to tackle the exam.
How to Choose the EA Exam Course
The key to success is choosing the right study materials. The following are what to look for in a high-quality prep course.
- Extensive Study Materials
A good course should have video lectures, textbooks, and detailed summaries. Some people learn best by reading, while others opt for visual aids, thus, choosing a course that fits your learning style is paramount. - Expert Support
Some courses offer support from enrolled agents or CPAs. Access to expert guidance could be the game-changer you need. - Practice Exams
The prep course of your choice should have practice exams that simulate the real exam environment. These are essential to build your confidence and get used to the types of questions and the timing. - Flexibility
Go for a prep course that allows you to study at your own pace. This is particularly important if you’re also balancing other responsibilities. Many courses offer online and mobile options to help you study on the go. - Positive Reviews
Do your research and determine preparation courses with high pass rates, as well as satisfied users. Reviews and testimonials from passers give you confidence in your choice.
Cost and Fees
While the cost could vary, in general, the enrolled agent exam will cost you around $259 for each part, totaling to $777 if you take all parts. This excludes additional fees for retakes or rescheduling.
Check out the breakdown of potential costs:
- Examination Fee- $259 for each part
- All three parts Examination Fee – $777
- Enrollment Fee after passing – $140 one-time fee for processing the EA status with the IRS
CONCLUSION
By taking the strategies meticulously, you will boost your success rate on the Enrolled Agent exam. The key to success includes systematic and rigorous preparation, as well as effective test-taking practices. Always remember that thorough preparation breeds confidence, and confidence, of course, is paramount to exam success.
FAQs
Q. What is the passing score?
Ans. Out of a possible 130, you need to have a score of 105 to pass each section.
Q. Can I take the exams in any order?
Ans. Yes. Many applicants start with the part they feel most confident about to create momentum.
Q. How long do I have to prepare to take the exam?
Ans. It varies depending on your background in tax law and your commitments. Most spend three to twelve months preparing for all three parts.
Q. How important are practice exams?
Ans. Practice exams are vital, since they help you familiarize yourself with the format of the exam and the types of questions, minimizing anxiety.
Q. What to do on exam day to ensure the best performance?
Ans. Arrive early with all the necessary documents. Read questions carefully and keep hydrated.