Earning an enrolled agent (EA) designation is a big accomplishment that can launch your career into a new stage that includes more clients, more responsibility and more revenue. An EA designation allows you to practice before the IRS as a taxpayer’s agent or legal representative. This includes all matters connected with presentations to the IRS relating to a client’s rights, privileges, and liabilities under laws and regulations administered by the IRS.
NATP membership includes part one of our trusted partner Gleim’s EA exam study system. Members also receive deep discounts on parts two and three.
Exam format
The EA exam consists of three distinct parts with three and a half hours of testing time for each part. Each exam part contains 100 multiple-choice questions and covers a wide range of tax topics. There is an optional 15-minute break after the first 50 questions.
Subject matter
Questions on the exam test candidates’ ability to complete and file forms and tax returns, as well as represent taxpayers before the IRS. The exam covers federal taxation, tax accounting and the use of tax return forms for individuals, partnerships, corporations, trusts, estates and gifts.
Exam details
The 2021 testing window (EA exam tests 2021 tax laws) began May 1, 2022, and is offered continuously through Feb. 28, 2023. Because many exams contain experimental questions, scaled scores are determined by dividing the number of correctly answered questions by the total number of questions in the exam, then converting the results to a scale that ranges from 40 to 130. A passing score is 105 or higher (approximately 70%).
Signing up for the exam
There are three steps:
- Obtain or renew your preparer tax identification number (PTIN)
- Complete and file Form 2587
- Schedule an exam part with Prometric
Final tips for studying for the EA exam
The goal is to pass each part of the EA exam the first time you sit. To achieve this, you should develop an approach that best suits your needs and preferences. Be realistic about what you can expect from yourself and make a plan you will be able to keep. You won’t have to spend the same amount of time on every topic. Ask yourself:
- How familiar am I with the material?
- When were my last accounting classes?
- How much experience do I have with individual and/or business taxes?
- How much time do I have available to study?
- How long can I concentrate in one sitting?
When and where to study
Study when and where you study best. The exam center is very quiet, so candidates should complete practice exams in a similar environment. Make EA review a top priority until you’ve passed the exam.
Multiple choice questions
There are three different types of EA exam multiple choice questions, but at the most basic level, each question consists of three parts:
- The question stem: question, details necessary for answering and extraneous info
- The best answer choice: best possible answer out of the four provided
- The distractors: remaining answer choices designed to distract you by seeming plausible
Multiple choice answering techniques
Knowing how to take the exam and answer individual questions is just as important as studying the subject matter tested on the exam. Work through the question systematically.
- Start by reading the sentence that is actually asking the question, which is usually the last sentence of the question stem.
- Read the answer choices carefully. Even if the first answer appears to be the correct choice, don’t skip reading the remaining answer choices. Treat each answer choice as a true/false question as you analyze it. In computational items, distractors are carefully calculated such that they are the result of making common mistakes. Check your work if time permits.
- Determine the best available answer
- Make an educated guess – don’t agonize over one item. If you encounter a question that is ambiguous:
- Rule out easily identifiable distractors
- Speculate on the rationale behind the question
- Select the best answer or guess between two equally appealing options
- You have a 25% chance of answering the question correctly!
- Never leave a question unanswered!
Learn more about studying for the EA exam at natptax.com/study.
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. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.