Enrolled agents (EAs) have the authority to represent taxpayers before the Internal Revenue Service (IRS). They handle disputes, bring forward cases and considerations, and resolve some of the most complex tax-related issues.
The EA designation indicates you possess in-depth knowledge of individual and business tax codes, policies, and practices. While you do not need an EA designation to prepare and file taxes for others, you do need it if you want representation rights with the IRS. Certified public accountants (CPAs) and licensed attorneys also qualify for representation rights.
According to the IRS, there are more than 58,000 active EAs in the U.S., as of September 2024. Discover how to become an enrolled agent and what benefits come with EA designation.
Popular Online Taxation Master's Programs
Learn about start dates, transferring credits, availability of financial aid, and more by contacting the universities below.
Why Get the EA Designation?
-
Quickest Path to IRS Representation Rights
To represent clients in front of the IRS, you need CPA licensure, attorney licensure, or EA status. Unlike the CPA and attorney pathways, the EA designation has no minimum degree or experience requirements. Candidates need only to pass an exam and suitability test to qualify. -
Higher Earning Potential
According to Payscale, tax preparers earned an annual average salary of $51,740, as of August 2024. Enrolled agents made $78,000. -
Improved Employment Opportunities
The EA designation may open the door to jobs that require IRS representation rights, but it helps promote your expertise of tax laws and practices as well. Tax preparers could be more heavily regulated in the future, which could make EA status mandatory.
How Do You Qualify for the EA Credential?
Qualifying for the EA credential requires four steps:
- Obtain a preparer tax identification number (PTIN): Open an account on the IRS Tax Professional PTIN System, submit your personal information, and pay the $19.75 application fee to receive your PTIN.
- Pass the Special Enrollment Examination (SEE): Within three years, complete the three-part EA exam called the Prometric SEE with a passing score.
- Apply for enrollment: Once you pass the SEE, you must submit Form 23 and a $140 enrollment fee to Pay.gov.
- Pass a suitability check: The suitability check examines your personal tax compliance and criminal background.
Educational Requirements
Enrolled agents have no minimum education requirements, but they need a solid grasp on tax laws and policies to pass the SEE. You can acquire the requisite knowledge through self-study or by taking an accounting certificate program.
With a bachelor's degree in accounting, you can prepare for the SEE while also bolstering your qualifications for employment. A master's in accounting or a related discipline may give you a competitive advantage for senior or leadership positions.
Learn More About Required Education
Certificate programs in accounting
Bachelor's degree programs in accounting
Master's degree programs in accounting
Professional Requirements
The requirements for the EA designation do not include professional experience, but experience may prove helpful for employment. Many employers prefer candidates with previous tax filing and preparation experience.
Though not required, candidates who have professional experience with the IRS may qualify for the EA designation without passing the SEE. To qualify, applicants need a minimum of five years with the IRS in a relevant role, such as a special agent, revenue officer, tax specialist, or settlement officer.
What Does the Special Enrollment Exam Cover?
The SEE, which is the EA exam, contains three parts, each with 100 multiple-choice questions and a 3.5-hour time limit. You can complete the three parts in any order as long as you finish the entire exam within three years.
| Section | Content Covered | Time |
|---|---|---|
| Individuals |
| 210 minutes |
| Businesses |
| 210 minutes |
| Representation, Practices, and Procedures |
| 210 minutes |
Scoring the Exam
Each section of the exam features 100 questions, with 85 questions scored and 15 questions used for experimental purposes. As soon as you finish the exam, you will be provided with a pass or fail message. You will also receive a score report that provides more information.
Scores are scaled between 40-130, with 105 being the cutoff for a passing grade. If you fail, your score report will include your grade and diagnostic information to help you improve. If you pass, you will not receive your exact score.
Once you pass a section, you can schedule the next section right away. If you fail a section, however, you need to wait at least 24 hours to reschedule or schedule another section.
| Exam Section | Pass Rate |
|---|---|
| Individuals | 57% |
| Businesses | 68% |
| Representation, Practices, and Procedures | 70% |
How Do You Register for the EA License Exam?
To register for your EA exam, you need to create a Prometric account. To set up your user account, you need to provide some personal information, government identification, and your PTIN — which requires a Social Security number (SSN).
Once you register, you can schedule your exam up to six months in advance and choose from a Prometric national or international testing location.
You can attempt each examination part up to four times during the test window (currently May 1, 2024 to February 28, 2025). If you do not pass a section after four attempts, you must wait until the next window to try again.
Paying for the Exam
Each section of the exam costs $259, a fee payable upon scheduling your testing time.
Refunds are generally denied, but you can reschedule your testing time for free if you give at least 30 days' notice. If you cancel or reschedule within 5-29 days from your testing time, you will be charged a $35 fee. If you cancel within five days of your testing time, you will forfeit your entire exam fee.
How Can You Prepare for the EA Exam?
There are many ways to prepare for the EA exam, but studying early and often is the best method for success.
The following section provides some of the best preparation tips to get you ready for the SEE and your EA status.
Top Tips
-
1
Review the test section details
Prometric provides a detailed content overview, which shows you what you need to know for each section and subsection. Use this information to create a study plan and test material. -
2
Familiarize yourself with the sample questions
You can find sample questions and answers for each section in different places online, including the IRS website. These example questions can help you study, but they can also show you how test questions are formulated. -
3
Complete practice tests
Taking a practice exam from one of the SEE prep providers can give you an idea of where you stand before your actual test day. Mock tests help you identify areas of weakness and hone your time management skills. -
4
Consider a prep course
A SEE prep course can help you focus your study efforts and provide relevant reading material. Depending on the course, you may also receive personalized study plans, tutoring, and sample exams. -
5
Take a test drive
Prometric allows you to take a 30-minute trial run of the testing experience on your test day. This can help you get familiar with the check-in, seating, and testing process before your time actually begins.
Practice Exams and Study Resources
- IRS Website: The IRS website provides the most up-to-date information for aspiring EAs, including details on the EA designation requirements and maintenance. You can learn how to become an EA and what types of questions you might encounter on the SEE. You can also use the IRS website as an official study resource.
- Prometric: Prometric administers the EA exam and provides a detailed overview of the test sections and subsections. You can also find an exam tutorial, sample questions and answers, and helpful tips to prepare for your test day.
- The National Association of Enrolled Agents (NAEE): The NAEE partnered with Surgent Accounting & Financial Education to develop a SEE prep course and exam review. Members of the NAEE can receive course discounts, along with access to an online learning platform.
What Is Needed to Maintain the Certification?
You must renew your EA designation every three years, a cycle that depends on the last digit of your SSN. To remain eligible for renewal, you need to complete at least 72 hours of approved continuing education during the three-year period. You also need to complete at least 16 hours per year, including two hours in ethics.
You need to renew your PTIN every year as well.
Should You Get Multiple Certifications?
The IRS offers no other certification for EAs, but you can pursue additional credentials through other organizations to give your career a boost.
Here are some certifications that can help you stand out amongst your peers:
- CPA Licensure: CPA licensure can qualify you for many accounting careers, including some of the most advanced accounting roles and leadership positions. Compared to general accountants, CPAs enjoy greater earning potential and employment opportunities.
- Accredited Tax Preparer (ATP): Awarded by the Accreditation Council for Accountancy and Taxation (ACAT), the ATP highlights a tax professional's expertise in tax codes, ethics, and best practices.
- Accredited Tax Advisor (ATA): Also from ACAT, the ATA showcases your mastery over complex tax issues, tax planning, and consulting.
Questions on How to Become an Enrolled Agent
How long does it take to become an IRS-enrolled agent?
The time it takes to become an IRS-enrolled agent depends on how long you prepare for the EA exam. Once you pass the SEE, it may take up to 60 days for the IRS to process your EA designation.
Is an EA better than a CPA?
Both EAs and CPAs can represent clients in front of the IRS, but they differ in many ways. EA designation offers a much shorter route to earning representation rights, but CPA licensure may provide a broader professional reach in the accounting field.
How hard is it to get your EA designation?
Earning your EA status may be difficult, as the EA exam pass rates ranged from 57%-70% for the 2023-24 cohort. Aside from the exam, however, there are relatively few obstacles to designation.
Is becoming an enrolled agent worth it?
You can earn EA status in a relatively short period of time and for much less than the cost of a degree, making the designation worthwhile for many aspiring tax professionals.
