Why Become An Enrolled AgentWhat is an Enrolled Agent?
An enrolled agent is a person who has demonstrated competence in tax matters, allowing that individual to represent taxpayers before the Internal Revenue Service. A person wishing to become an enrolled agent must pass a three-part Special Enrollment Examination (SEE) as well as a background check. Prometric has been selected to develop and administer the SEE on behalf of the IRS. Benefits of Becoming an Enrolled Agent
The Enrolled Agent status prepares the EA to advise, represent, and prepare tax returns for a variety of clients. The status identifies these individuals to the client as specialists and insures the client that the EA has kept up to date on the latest tax law changes. This brings more business and more income to the practitioner. The right to represent taxpayers before the IRS is given only to selected groups of individuals. Attorneys, Certified Public Accountants, Enrolled Actuaries, and Enrolled Agents are the only groups recognized to practice before the IRS. Out of that group, the Enrolled Agent is the only individual who is required to take the test to achieve the status. The others are granted the right of representation through their state credentials. An unenrolled preparer who prepares a return can represent the client for whom the return has been prepared, but only before the examination division. The unenrolled preparer cannot represent the client before the collections or any other division of the IRS. This limits what the preparer can do for the client and does not allow the preparer to perform the same function for potential clients. The Enrolled Agent designation is a recognized symbol of expertise in the area of taxation. Tax professionals who have this designation generally receive greater compensation for their services in exchange for greater expertise. How to Become an Enrolled Agent
The Enrolled Agents status is available to individuals who pass a 3-part test, pass the background check, and then apply for enrollment with the IRS. Individuals who satisfy a five-year term of IRS employment where their job duties require interpretation and application of tax law may also apply for enrollment. The computerized test is provided through Prometric. Candidates can take each part of the examination at their convenience. Consequently, parts do not have to be taken on the same day, or on consecutive days. All parts do not have to be taken or scheduled during an examination window. Candidates can take examination parts: - One time each during the first test window (October 5, 2006 to December 1, 2006).
- One time each during the second test window (January 2, 2007 to February 28, 2007).
- Up to four times each during the third test window (May 1, 2007 to February 28, 2008) and beyond.
Each part of the examination contains 100 multiple choice questions and tests three separate areas. Part I covers individual tax issues, including estates and gifts (Forms 706 and 709). Part II addresses businesses (i.e., farms, sole proprietors, partnerships, LLCs, and corporations), exempt organizations, retirement plans, and estate and trust fiduciary returns (Form 1041). Part III tests representation, practice and procedures, including ethics, recordkeeping procedures, appeal procedures, practitioner penalty provisions, research material, collection procedures, and electronic filing. To take the test, an individual must submit an application using Form 2587 and register for an exam time and location. The application is available on Prometric's website at http://www.prometric.com/IRS/. Once the application is submitted, either online, or by fax, or mail, the candidate must register for the exam on Prometric's website. Starting January 2007, candidates sitting for the Special Enrollment Examination will pay $97.00 for each part of the examination for which they take. This cost includes an $86.00 examination fee to Prometric and the new $11.00 IRS user fee relating to IRS costs of oversight of the examination process. Retaining the Status of Enrolled Agent
Once a preparer has attained the Enrolled Agent status, the learning continues. A total of 72 hours of continuing education credit (CPE) is required over the three-year enrollment cycle, with not less than 16 CPEs in any one year. An Enrolled Agent is governed under rules set forth by the IRS in Circular 230. These rules govern the advertising and solicitation of clients, the conduct of the preparer, and the procedures to follow regarding renewal or loss of status. How to Study for the EA Exam
Where to begin? At NATP we can help you pass the EA exam the first time. - Complete Gleim's EA Review System
- Sign Up for NATP's EA Exam Review Course
| 
