How to become an enrolled agent: your step-by-step roadmap
Becoming an enrolled agent (EA) is an excellent way to gain expertise in tax matters and represent taxpayers before the IRS. The process is straightforward and has no education prerequisites, so you can begin immediately. Here’s a step-by-step guide to help you navigate the EA process and earn the highest credential the IRS awards.
Step 1: Obtain a preparer tax identification number (PTIN)
Your PTIN identifies you as a tax professional. Here’s more information you’ll need to know about obtaining a PTIN.
Eligibility: You must be 18 or older and generally provide your Social Security number (SSN). Foreign people without an SSN can still apply by providing additional documentation.
How to apply: You can apply online through the IRS website in about 15 minutes. The cost is $19.75.
Alternative: You can also apply by mailing in Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal, which will add 4-6 weeks of time.
Step 2: Schedule the IRS Special Enrollment Exam (SEE)
Unless you have been an IRS employee, the IRS requires you to take its Special Enrollment Exam (SEE), a three-part exam covering individual tax, business tax, and IRS practice and procedures.
How to apply: Book your exams through the Prometric Test Center website. They can be taken in any order.
Fees and availability: Each exam part costs $267. The test is offered from May 1 to Feb. 28, with a blackout period in March and April.
Plan accordingly: Be realistic when scheduling your exams, incorporating enough time for studying and planning for life and work events along the way.
Step 3: Achieve passing scores on all three parts of the SEE
The IRS grades on a scale; with 130 being the highest score, you need a minimum of 105 points on each part of the SEE to pass.
Score validity: Passing scores are valid for up to three years. (After that, you will lose credit and have to retest.) You can also retake each part up to four times per testing period.
Study tips: Prepare using resources like the National Association of Tax Professionals’ (NATP) EA Exam Review, which offers study materials, practice exams and more.
Step 4: Apply for enrollment
Next, you will apply for official enrollment by submitting Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, to the IRS.
Application process: You can apply online or by mail (online is faster). The application fee is $140.
Processing time: After submitting your application, the IRS typically processes it within 60 days. Former IRS employees may face longer processing times.
Step 5: Pass the background check
Finally, the IRS will conduct a background check to ensure you meet tax compliance standards and do not have a criminal record that disqualifies you.
- Disqualifications: Outstanding tax liabilities or criminal offenses involving dishonesty or breach of trust can disqualify you. However, some criminal records can be explained in your application.
Once you pass the background check, congratulations! You will receive your official enrollment card and a wall certificate from the IRS.
Ongoing Requirements for EAs
After becoming an EA, you must maintain your status by completing the following requirements:
PTIN renewal: Renew your PTIN annually.
EA renewal: Renew your status every three years, with a $140 renewal fee.
Continuing education: Complete 72 hours of continuing education over the three-year cycle (at least 16 hours annually), including two ethics credits annually. NATP has a robust library of CPE offerings to help you meet this requirement.
Conclusion
Becoming an EA offers a rewarding career path in taxation. Following these steps and staying committed to education and compliance will make you an elite-status tax professional who can represent clients before the IRS. Best of luck on your journey to becoming an EA!
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