How Long it Takes to Become an Enrolled Agent

You don’t have to go to college to get a rewarding and lucrative career.

The enrolled agent profession is a fantastic opportunity for the math whiz who’s tired of the education hamster wheel—because, let’s face it, it can be exhausting!

After all, the average person who only has a high school degree makes a median income of around $46,000 annually. However, as an enrolled agent, you can make $64,264 every year. That’s almost an extra 20 grand in your pocket every single year, no extra school required!

But how long does it take to become an enrolled agent, really? And is it even worth your time?

I’ll break down the step-by-step timeline, so you’ll know what to expect as you prepare to earn your EA license. Let’s dive into what it really takes to become an enrolled agent, from studying for (and passing!) the EA exam to applying for your license.

Key Takeaways

• Becoming an EA Takes About a Year: For most people, it takes around 6-14 months to prepare for the EA exam, pass all three parts, and complete the licensing process.
• Three-Part Exam: The EA exam covers individual taxes, business taxes, and representation practices. Each part can be taken separately, giving flexibility to study and prepare.
• EA Exam Prep is Key: Enrolling in an EA prep course and using study materials helps you pass each part of the IRS Special Enrollment Exam on the first try.
• Ongoing Education is Required: Enrolled agents must complete 72 hours of continuing education every three years (and a minimum of 16 hours yearly, with at least 2 of them in ethics) to keep their license current.
• Flexibility to Work in Various Tax Areas: As an EA, you can represent clients in personal and business tax matters, making it a versatile career path within the tax profession.

Step 1: Prepare to Take the EA Exam

⏰ Estimated Time: 3-6 Months

The path to becoming an enrolled agent begins with passing the EA exam, officially known as the IRS Special Enrollment Exam (SEE). This three-part exam covers individual taxes, business taxes, and representation, practices, and procedures. But before you can jump right in, you’ll need to do some prep work.

• Choose a Prep Course: Most candidates start by selecting an EA exam prep course. These courses provide study materials and a structured path to learn tax laws, tax codes, and IRS procedures.
• Gather Study Materials: In addition to a course, you might gather extra study materials, like review books, study notes, or flashcards, to help you cover each part of the exam.
• Create a Study Plan: A smart study plan is essential. Most people find that a 3-6 month prep period is enough to study all three parts of the exam without feeling overwhelmed.

Keep in mind that these numbers can vary widely depending on your unique circumstances. For example, if you already work in this field and have taken courses and read books, you may need no more than a month to prepare.

However, if you’re not a good test taker, have no experience in the subject matter, or have a very busy lifestyle, it may even take 8 months or more to prepare. It truly depends. However, for the sake of a well-rounded average, 3-6 months is a sound estimate.

Step 2: Take the Enrolled Agent Exam

⏰ Estimated Time: 2-6 Months

The EA exam is divided into three separate parts, and you’ll have to pass each one to become an enrolled agent. The three parts are:

1. Individuals – Focuses on personal tax returns and tax issues
2. Businesses – Deals with business tax preparation and tax law for corporations, partnerships, and more
3. Representation, Practices, and Procedures – Covers client representation, ethical issues, and how to manage tax compliance matters.

Here are factors to consider when estimating how long it will take to schedule and pass every section of the EA exam:

• Scheduling the Exam: Once you feel ready, you’ll register for the exam through the IRS website. You can schedule each part separately, allowing you to focus on one section at a time.
• Passing Scores and Re-testing: You’ll need a passing score on each part, but don’t stress too much if you don’t pass the first time. You can retake each part up to four times in a single testing window (May 1 to the last day of February).
• Time Between Exams: Many candidates prefer to spread out the exams over a few months, so they can study thoroughly for each section. This approach means the entire exam process might take 2-6 months.

This timeline assumes you spread out your exams, giving you 1-2 months to study for each EA exam part.

With proper EA exam prep, passing scores are achievable, and you’ll find the IRS special enrollment examination manageable with the right study techniques.

Step 3: Apply for the EA License

⏰ Estimated Time: 1-2 Months

Once you’ve passed all three parts of the EA exam, it’s time to apply for your EA license. This step is straightforward but involves a bit of paperwork and a suitability check by the IRS.

• Obtain a PTIN (Preparer Tax Identification Number): You’ll need a current PTIN, which allows you to prepare tax returns for clients legally.
• Complete the Application and Suitability Check: Submit an application to the IRS, and they’ll conduct a background check, which looks into any outstanding tax liabilities and/or criminal history. Assuming you have no major issues, this check is usually just a formality.

This licensing process doesn’t take long, but it does add some waiting time. The investigations into your history can take anywhere from a few weeks to a couple of months.

Step 4: Get Your EA Certification and Starting Your Career

⏰ Estimated Time: Ongoing

With your licensure approved, congratulations—you’re officially an enrolled agent! But the journey doesn’t end there. To maintain your EA status, you’ll need to stay updated with tax laws and IRS regulations.

• Continuing Education: The IRS requires enrolled agents to complete 72 hours of continuing education every three years. You must complete a minimum of 16 hours every year, 2 of those hours in ethics courses. This ongoing learning ensures that EAs stay informed about recent tax laws and changes to the tax code.
• Networking and Career Development: Many EAs expand their knowledge through seminars, EA review courses, and networking events. Becoming part of a community of tax professionals is a great way to stay informed and grow your career.

Whether you decide to work for a tax firm, start your own business, or specialize in complex tax issues, maintaining your knowledge is key to a successful EA career.

Sample Timeline: Becoming an Enrolled Agent

Here’s a quick timeline to illustrate a typical journey to becoming an EA:

1. EA Exam Prep (3-6 months) – Take an EA course, gather study materials, and follow a study plan.
2. Taking the EA Exam (2-6 months) – Complete each part of the three-part exam, allowing time for potential retakes if needed.
3. License Application (1-2 months) – Apply for your EA license, including a suitability check and PTIN application.
4. Ongoing Education (Every 3 Years) – Complete continuing education to keep up with new tax code changes and IRS requirements.

⏰ Total Estimated Timeline: 6 to 14 Months

How Long Does it Take to Become an Enrolled Agent? Adding it All Up

On average, it can take around 6-14 months to become an enrolled agent if you’re working part-time and studying at a steady pace. However, if you’re fully dedicated and have a background in tax, you might be able to fast-track your timeline and achieve your EA designation in 4-6 months.

Conclusion

Becoming an enrolled agent is a rewarding journey, especially if you’re interested in tax law, business tax preparation, and representing clients in complex tax matters.

While the process involves study, exams, and a few months of waiting, it’s shorter and often more flexible than other certifications, like becoming a Certified Public Accountant.

As you consider this career path, remember that it’s not just about passing the EA exam. It’s also about ongoing learning, gaining tax knowledge, and being able to confidently represent taxpayers before the IRS. By following a timeline that works for your lifestyle, you can become an enrolled agent in as few as 6 months.

Good luck on your EA journey!

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