An enrolled agent is a federally-certified tax practitioner who can represent taxpayers before all administrative levels of the Internal Revenue Service. Enrolled agents help individuals, corporations, and trusts when audited by the IRS. Enrolled agents specialize in tax resolution. The status of enrolled agent is the highest credential given by the IRS.
What qualifications are necessary to become an enrolled agent?
While you don’t need a certain degree or diploma, you do need to prove your competence before you can start practicing as an enrolled agent. You can do this one of two ways: work for the IRS, or take the Special Enrollment Exam (also called the SEE--more details to follow). Regardless of the route you choose, you must pass a suitability check. The suitability check ensures that you yourself have not been fraudulent or late in your own tax documents.
You can apply to be an Enrolled Agent after at least five years’ experience working with the IRS. After your service, fill out Form 23. The suitability check will be performed, along with a background check upon receipt of the form and payment. The background check verifies your work experience. The IRS will use these instructions to determine if your technical experience in the field qualifies you.
Special Enrollment Exam
For those who don’t have a half-decade or more experience, you can take the Special Enrollment Exam. This exam is run by Prometric and comes in three parts; you can take them in any order you like. You must, however, pass all three sections. We’ve even created an easy checklist for you!
- Obtain a Preparer Tax Identification Number (PTIN). To do so, go to the IRS PTIN website. To receive your PTIN, you will need to have these things ready:
- Personal and Business Information (name and mailing address)
- Explanations for felony convictions, if needed
- Explanations for any business or individual problems with tax obligations
- Credit or Debit card to pay the $64.25 fee
- Any certification information (required if you are already a CPA, attorney, enrolled agent, enrolled retirement plan agent, enrolled actuary, or certified acceptance agent) if applicable; you’ll need the certification number, issuance jurisdiction, and expiration date.
- Your PTIN will arrive when the bank clears your payment. This usually happens within 15 minutes.
- Register, schedule, and pay for the exam. The exam is $109 for all three sections. You will sign up for your scheduled time and testing site at the Prometric site.
- Study! The following links are the guides to each section, so you will know what information will be included in each part.
- Section One is about individual tax preparation.
- Section Two is about preparing taxes for businesses.
- Section Three is about representation, practice, and procedures.
- The IRS publishes old tests with the correct answers after so many years have passed. Just make sure to recheck the information in case the tax code has updated enough to render the question and answer outdated.
- You can also take an Enrolled Agent exam preparation course. Here is a link provided by CrushtheEAexam.com weighing the features of the top five online courses. It also includes a helpful discount for each course.
- After you have passed all three sections of the test, you need to apply for enrollment. Do so using Form 23. It’s this point in the process that the IRS will perform the suitability and background checks.
Becoming an Enrolled Agent can lead to a fulfilling career of helping others. The SEE exam and the IRS experience will give you the tools you need to feel confident in your abilities and knowledge as an enrolled agent. Canopy wishes you good luck!