The enrolled agent (EA) credential is the highest tax professional designation granted by the IRS, and passing the Special Enrollment Examination (SEE) is a key step to earning it.
While CPA exam pass rates are around 45-55%, EA exam pass rates are significantly higher at approximately 65-70%. Those stats are an encouraging starting point, but how can you ensure you will pass the exam the first time?
What’s on the exam, and how can you study to prepare for success?
What’s on the EA exam?
The SEE is a closed-book exam divided into three parts:
- Part 1: Individuals
- Topics include income, deductions, credits, and return prep for individuals
- Hot spots: Filing status, adjustments, and specialized returns
- Part 2: Businesses
- Focuses on taxation for sole proprietors, partnerships, and corporations
- Hot spots: Depreciation, business expenses, entity rules and basis
- Often considered the most comprehensive and complex section
- Part 3: Representation, Practices and Procedures
- Tests ethics, IRS practices and taxpayer rights
- Hot spots: Circular 230, audits, appeals and preparer penalties
The IRS also publishes detailed exam content outlines for each part, available through Prometric test centers.
Exam format
Each part of the EA exam consists of 100 multiple-choice questions, which you’re given 3 ½ hours (210 minutes) to complete.
Of those 100 questions, 85 are scored, and 15 are unscored experimental questions that don’t count toward your final score.
The IRS grades on a scale of 40–130, and you’ll need a scaled score of 105 to pass.
After you answer the first 50 questions, you’ll have the option to take a scheduled break.
Once you begin the second half of the exam, you won’t be able to go back to review or change your answers from the first 50 questions.
How to study for (and pass!) the EA exam
Applying dedication, a little strategy and partnering with NATP will help you achieve success.
Keep in mind that you can take the three parts in any order and on your own schedule. Assess your strengths and either start with what’s easiest to gain confidence or tackle the most challenging part first to get it out of the way.
Take time to build a study plan that fits your life, giving yourself up to two or three months per section – or longer if needed! Passing scores carry over for up to three years.
Other study tools and tips include:
Time + repetition - Study daily in short chunks
Learn together with a friend or online group
Utilize NATP courses and education for weak spots/more in-depth knowledge
Choose a reputable test prep company to guide your journey
NATP members have free access to Gleim’s EA Review System for part one of the SEE, which includes:
In-depth study guides based on the IRS-provided outlines
Adaptive quizzes that target weak spots
Practice exams that mimic the actual test
A large bank of multiple-choice questions with software formatting identical to the SEE
Videos, lectures and flashcards
Mentor support
Final EA exam study tips
No matter where you are in your tax career, becoming an EA is 100% achievable for you.
With the right mindset, resources and preparation, you can pass the EA exam on your first try – and open doors to more clients, income and possibilities.
NATP is here to help
We’re building a free library of guides, blogs and tools to help you become an enrolled agent. Drop your email below, and we’ll send new resources as they’re released. 👇
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.