The enrolled agent course offers a wide range of services to clients, quite close to the level of a Certified Public Accountant (CPA) and lawyer. However, they do not require the permission of the state board or any license from them to operate. The enrolled agent credential isn’t a certification, although it’s often referred to as such by many practitioners, including the National Association of Enrolled Agents (NAEA). An enrolled agent must pass an IRS test covering individual and business tax returns to become credentialed. An exception to testing exists for those who have certain experience as an IRS employee.
EA Exam Part 2
In 1972, a group of enrolled agents collaborated to form the NAEA to represent the interests of EAs and increase the professional development of its members. EAs take continuing education courses each year to keep up with the changes and have research tools at their disposal to constantly monitor updates. Most taxpayers do not have the time, desire, or the research tools necessary to keep up with the tax code each year. When you choose an enrolled agent, you know your preparer keeps up with the rules and regulations and will use this expertise to do the best job possible for you. Now that you know all about the Enrolled Agent syllabus and structure of the IRS Special Enrollment Examination, you may want to discover the Enrolled Agent exam dates.
- Because enrolled agents have such diverse backgrounds and may offer a variety of services, it is important to talk with your enrolled agent about how best to put his or her expertise to work for you.
- In order to become an enrolled agent, you must achieve passing scores on all three parts of the EA Exam.
- An EA is someone who has passed the EA exam and earned the highest credential awarded by the IRS.
- The distractor answer options may be similar to the right answer, so seeing one of those first could tempt you to make your selection, which would be wrong, and move on.
More Help with the IRS EA Exam
If you fail your exam, you will still be given a score so that you are able to see where you fall. But, if you scored a 50, you may find that you need to increase your studying and comprehension of the exam materials. A panel of Enrolled Agents and IRS representatives have determined that a passing score is 105. The results are given by calculating the number of questions answered correctly from the total number of questions given.
Is there an IRS Enrolled Agent Exam Study Guide PDF?
This article contains a friendly, comprehensive guide to develop the business successfully. This is a high pass rate compared to other professional accounting exams, like the CPA, which has an average pass rate of 45-50%. The IRS sets a scaled passing score at 105 out of the available 130 points. The EA also greatly expands the number of services a tax preparer can offer to potential clients. Candidates seeking testing accommodations must submit a completed request packet.
EAs, CPAs, and tax attorneys
- Registering is required before you can schedule your exam appointment.
- To be more specific, this is the list of topics to study if you’re planning on taking the EA exams from May 1, 2025, to February 28, 2026.
- EA certification is obtained through the IRS, not through any particular state.
- It’s important to note that some states require e-file providers to submit a separate enrollment application for authorization to e-file individual or business tax returns.
Along with teaching at business and professional schools for over 35 years, https://www.bookstime.com/articles/nonprofit-audit she has author several business books and owned her own startup-focused company. Jean earned her MBA in small business/entrepreneurship from Cleveland State University and a Ph.D. in administration/management from Walden University. So, it’s often hard to predict the amount you’ll pay until you speak with an enrolled agent you’re thinking about hiring. For instance, it’s easy to have face-to-face meetings if you’re working with a local enrolled agent.
How many parts to the enrolled agent exam?
These 100 MCQs include 85 scored questions and 15 experimental questions. enrolled agent business So between the three EA exam parts, you’ll have to answer 300 questions. Fostering strong client relationships is essential to sustaining and growing an EA’s practice.
- If the answer April 16 isn’t available, but the option April 15 is, then April 15 is the single best answer.
- So, if a tricky question about an obscure tax law trips you up, feel free to work on it for about 2 minutes.
- Finally, Intuit Pay-by-Refund gives you an easier way for clients to pay your preparation fee, ensuring that they get their refund and you get paid.
- Before you start the process, make sure you have a Preparer Tax Identification Number, or PTIN.
Both enrolled agents and CPAs can prepare tax returns, offer tax planning advice, and represent clients before the IRS. However, there are important differences between enrolled agents and CPAs when it comes to their education and the tasks they can handle. If you get a letter from the IRS, or worse, are audited or are the target of a collection action, your EA can speak directly to the IRS on your behalf. To become an Enrolled Agent, you need to pass the EA exam, also known as the Special Enrollment Examination (SEE) administered by the IRS. The exam consists of three parts, each focusing on different areas of tax knowledge.
Tax tips
Individuals and businesses were submitting fraudulent claims for property loss and damage sustained during the Civil War while people with legitimate claims were unable to get them settled. Congress empowered enrolled agents to prepare claims against the government with the Horse Act of 1884. If you work in tax, and you want to build your career, consider earning your Enrolled Agent credential. Increased IRS audits, changes in tax law, and economic uncertainty have led to a growing demand for EAs and holding it broadens your opportunities and increases your earning potential. Jean Murray is an experienced business writer and teacher who has been writing for The Balance on U.S. business law and taxes since 2008.
What’s tested on the EA exam?
An alternative path to becoming an enrolled agent is through Internal Revenue Service (IRS) experience. Before taking the SEE, candidates must have a valid Preparer Tax Identification Number (PTIN). To help with the preparation for the exam, multiple resources are available, such as sample test questions, review materials, and exam bookkeeping information found in the SEE Candidate Information Bulletin. The Enrolled Agent exam is taken by candidates who wish to become Enrolled Agents. Managing your time on the EA exam gives you the best chance at success. So, to finish all 100 EA exam questions before your 3.5 hours run out, you should answer each question in 2.1 minutes.