Who is an IRS Enrolled Agent?
An Enrolled Agent, or EA, is the only federally licensed tax practitioners who specialise in all areas of taxation. Enrolled Agents are mostly known as America’s Tax Expert. Enrolled agents are the only taxpayer representatives who receive their unlimited right to practice from the federal government. Enrolled agents are licensed by IRS. Enrolled agent status is the highest credential awarded by the IRS and recognised across all 50 U.S. states.
An enrolled agent can advise, represent and prepare tax returns for individuals, corporations and trusts. Enrolled Agents are needed in small and large public accounting firms, law firms, and corporate accounting departments, state departments of revenue, investment firms, banks and in private practice.
How to become an Enrolled Agent?
For becoming EA no prior qualification is required. Any graduate with basic accounting knowledge can apply for the same. The candidate must prove his/her competency for tax-related matter. There are two ways to become EA:
1. Pass the Special Enrollment Exam (EA Exam):
To become an EA, an applicant must obtain a PTIN and achieve passing scores on all three parts of the Special Enrollment Examination ( Individuals, Businesses and Representation, Practices and Procedures), which covers many aspects of the Internal Revenue Code.
The different parts of the exam can be taken in any order. The only requirement is that applicant must pass all three sections in order to earn the EA certification. Prometric, the company selected by IRS to administer the SEE, maintains a website where candidates can learn more about the SEE and register for the test.
2. IRS Experience:
Applicant must have worked at the IRS for five consecutive years in a position which regularly engaged in applying and interpreting the provisions of the Internal Revenue Code and the regulations relating to income, estate, gift, employment, or excise taxes.
Maintaining enrolled agent status
Part of becoming an enrolled agent means maintaining the EA certification in the future.
Enrolled agents are required to renew their license every 3 years. This ensures that EAs are up-to-date on any changes and additions to the tax code.
The IRS will notify the candidate when his/ her renewal cycle is approaching. The candidate can renew online or he/she can complete the paper Form 8554 and mail it in. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. To prevent overloading of CPEs in any year of an enrollment cycle, the IRS requires a minimum of 16 hours of CPE every year.
|SSN ends in.||Renewal Period||Effective Date
|CPE Reporting Period|
|0, 1, 2, 3||11/01/18 – 01/31/19||04/01/19||01/01/16 – 12/31/18|
|4, 5, 6||11/01/16 – 01/31/17||04/01/17||01/01/14 – 12/31/16|
|7, 8, 9||11/01/17 – 01/31/18||04/01/18||01/01/15 – 12/31/17
The Exam fees
There is a $181.94 EA examination fee per part paid at the time of appointment scheduling. The test fee is non-refundable and non-transferable.
Enrollment to Practice Fee – Once you pass the exam and are ready to become an EA, you must pay $30 to the IRS in order to complete the enrollment process.
Hi-Educare Course Fees- The total course fees for all three parts of EA exam is Rs. 30,000/- plus GST (Group Discounts available). This course fees includes live classes, Instructor led Virtual Interactive Class room, Online Material, Continuous Faculty Support, Recorded sessions and Mock Exams with a practise question bank of 1,600+ MCQs.
Why Become An Enrolled Agent?
You should consider becoming an enrolled agent for several reasons.
- There is a growing need for representation. In recent years, an increase in IRS enforcement has resulted in the need for more taxpayer assistance.
- You will have unlimited earning potential. You don’t need to be hired by a firm to serve in this capacity; you can start your own business and take on as many clients as you can handle.
- This is a recession-proof career. People will always have to pay taxes and will always need help.