5 Step Checklist to Become an Enrolled Agent

If you’re interested in a career working with tax preparation and returns, Becoming an Enrolled Agent (EA) is an excellent choice. You need minimal education to get started, and you can earn the highest credentials the IRS can give.

And, with only around 60,000 other EAs in the U.S., it’s a fantastic opportunity to join a growing career pool before it gets oversaturated.

Plus, with the ability to represent clients before the IRS on a wide range of tax matters, enrolled agents are in high demand and have strong job security.

What’s not to love?

Whether you’re looking to work for an established firm or start your own tax business, this guide will show you exactly how to become an enrolled agent in five straightforward steps.

Key Takeaways

• Start with a PTIN: Getting a Preparer Tax Identification Number is your first step to becoming an enrolled agent.
• Pass the SEE Exam: The Special Enrollment Exam is essential for testing your knowledge of the tax code across three parts.
• Suitability Check Matters: After passing the SEE, the IRS will ensure you have a clean tax history and background.
• Keep Learning with CE: You must complete 72 hours of continuing education every three years to maintain your EA status.
• Unlock IRS Representation: Enrolled agents have unlimited rights to represent clients in any tax matters before the IRS.

How to Become an Enrolled Agent: 5-Step Checklist

Step 1: Get a Preparer Tax Identification Number (PTIN)

Before anything else, you’ll need to apply for a Preparer Tax Identification Number (PTIN) from the IRS. This ID number is essential because it allows you to prepare tax returns. As a result, it’s the first step toward becoming an enrolled agent.

[Note that your personal tax identification number is different; it is an ITIN (individual taxpayer identification number).]

Here’s how to get your PTIN:

1. Visit the IRS website and access the PTIN registration.
2. Create an account with basic information.
3. Provide your Social Security Number (SSN) and personal tax details.
4. Complete the process by paying the PTIN application fee.

Once you’ve got your PTIN, you’re officially set to start the journey to enrolled agent status. And don’t worry—it’s a quick process you can complete online.

Step 2: Pass the Special Enrollment Examination (SEE)

The Special Enrollment Examination, or SEE, is the main hurdle to earning EA status. Passing this exam shows that you thoroughly understand the Internal Revenue Code and the knowledge required to represent clients in tax matters. Here’s a quick rundown of what you need to know about the exam:

• Exam Structure: The SEE has three parts: Individuals, Businesses, and Representation; Practices; and Procedures. Each section is separate, and you can take them in any order. Each section has 100 questions to answer.
• Exam Duration: Each part of the exam takes 3.5 hours, but the actual sitting time is 4 hours to make room for a tutorial, survey, and a quick break. This adds up to a total of around 12 seated hours for the exam.
• Scoring: You need a passing score of at least 105 on each section out of a total of between 40 and 130 points. You can retake any section if you fail.
• Scheduling the Exam: Visit a test center near you or use remote proctoring if available. The test can be scheduled any time within the test window, typically from May through February. Currently, the window is May 1, 2024, to Feb. 28, 2025.

Tips for Passing the EA Exam

To prepare, consider investing in an EA review course. These courses cover the main topics on the exam, and most include practice exams to help you assess your readiness. This is far and away the best tool you can use to prepare for success on exam day.

Many candidates find the candidate information bulletin on the IRS website helpful, as it explains test center regulations and outlines the topics covered in each section.

Step 3: Complete a Suitability Check

After passing all three sections of the SEE, you’ll undergo a suitability check conducted by the IRS. This check confirms that you’re eligible to become an enrolled agent and don’t have any red flags in your personal tax compliance history. The IRS will review your background for things like:

• Outstanding tax liabilities: Ensure that your taxes are up-to-date, with no overdue payments.
• Criminal background: Only serious tax-related or financial offenses disqualify candidates.

Essentially, the suitability check is there to confirm that you’re a trustworthy candidate who’s been following tax law. Once you pass, you’ll be one step closer to becoming an EA.

However, be sure to do some research on this step in advance. If you don’t think you’ll pass a suitability check, you definitely shouldn’t put all of the hard work and study hours into trying to pass the enrolled agent exam.

Step 4: Apply for Enrollment with the IRS

After passing the suitability check, you’ll be ready to apply for official enrolled agent status. Here’s how the process works:

1. Submit the Application: Go to the IRS website and submit Form 23, the Application for Enrollment to Practice Before the Internal Revenue Service.
2. Pay the Enrollment Fee: A small enrollment fee is required at this stage, which can also be completed online.

If everything’s in order, the IRS will notify you that you’ve successfully achieved EA status. At this point, you can represent clients before the IRS on issues like tax returns, compliance, and more.

Step 5: Maintain Your EA Certification

Once you’re an enrolled agent, the journey doesn’t end there. Maintaining your enrolled agent status means staying up-to-date with tax law changes and completing continuing education (CE) requirements. Here’s what you need to know to keep your certification active:

• Continuing Education Requirements: You’ll need 72 hours of CE every three years. Annually, you need a minimum of 16 hours per year, including 2 hours on ethics.
• Renewing Your Status: Every three years, you’ll also need to renew your EA status with the IRS by completing the enrollment cycle requirements.

These ongoing requirements ensure that you’re always equipped to handle the latest tax regulations and represent clients effectively. If you stay on top of these, your EA status will remain active, allowing you to practice without interruptions.

Benefits of Becoming an Enrolled Agent

Now that you know how to become an enrolled agent, let’s go over why this career path is worth the effort. Here are some top benefits:

• Unlimited Practice Rights: Unlike other tax professionals, enrolled agents have unlimited rights to represent taxpayers in front of the IRS.
• Job Security: With the growing demand for skilled tax professionals, EAs enjoy job stability and competitive salaries.
• Flexibility: EAs have the flexibility to work with tax firms and corporations or even start their own tax business.
• Specialized Knowledge: You’ll gain expertise in the Internal Revenue Code and be well-equipped to handle complex tax issues, which sets you apart from other tax preparers.

Whether you dream of helping clients with tax compliance or representing taxpayers in IRS offices, pursuing a career as an enrolled agent can open up a world of opportunities.

Conclusion

Becoming an enrolled agent is a smart career move for those interested in tax law and IRS representation. By following these five steps—getting your PTIN, passing the SEE, completing the suitability check, applying for enrollment, and keeping up with CE requirements—you can build a career with high earning potential and unique privileges, even without a bachelor’s degree.

Plus, as an enrolled agent, you’ll have the satisfaction of helping people navigate their tax issues and achieve peace of mind. Add in the job stability and high demand, and you’re setting yourself up for a successful, enjoyable career.

So, are you ready to start your career path toward becoming an enrolled agent? Get ready to tackle the EA exams and put in the effort, and you’ll be on your way to becoming an invaluable tax professional.

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