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What is the Enrolled Agent certification?

An Enrolled Agent credential is the most prestigious status awarded by the IRS. An EA designation distinguishes tax professionals from other non-credentialed tax preparers, signaling a high level of expertise to clients, and allows them to have unlimited representation before the IRS. In this context, “unlimited representation” means EAs can work and communicate with the IRS on all matters regarding a client’s rights, privileges, and liabilities regardless of where their clients are located.

The Enrolled Agent credential expands a tax professional’s career horizons, granting benefits that could not be attained by that of an uncredentialled tax preparer.

Who are Enrolled Agents?

Enrolled Agents are individuals that have passed the IRS Special Enrollment Exam (SEE) and completed all other requirements set out by the IRS. It is the highest credential awarded by the IRS. 

The SEE, also known as the Enrolled Agent exam, is a comprehensive three-part test that tax preparers must pass in order to become an IRS Enrolled Agent.

Individually, the Enrolled Agent designation expands the number of services a tax preparer can offer, and EAs can expect to gain the following benefits:

  • Increased SalaryEAs make up to 55% more compared to the average tax preparer.
  • Implicit TrustEAs are listed on the IRS' RPO Database, a resource taxpayers rely on to find trustworthy tax preparers.
  • Unlimited Representation RightsEAs can provide representation to taxpayers in all 50 states, increasing their pool of potential clients.
  • Listed on the IRS RPO DatabaseActive EAs are also listed on the Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, increasing exposure and giving potential clients peace of mind.

Enrolled Agents also have many different career paths thanks to their designation, such as:

  • Tax PreparerTax preparers work with taxpayers to complete federal and state tax returns. They may work for a business or be self-employed.
  • Law Firm Tax SpecialistTax specialists in law firms are invaluable in cases where a client is being questioned in any situation having to do with the IRS or taxation.
  • Investment Firm Tax ProfessionalTax specialists are essential to the success of an investment firm, where they will provide advice on how the firm can generate the largest profit when it comes to taxes on investments.
  • Tax Office OwnerEnrolled Agents commonly go on to own their own tax practice with their own employees, but they can also buy and own a franchise office of a larger tax firm.
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  • Why become an Enrolled Agent
  • Basics of the Enrolled Agent exam
  • How to prepare for the Enrolled Agent exam
  • Sitting for the Enrolled Agent exam
  • What you can do after you earn your Enrolled Agent credential
  • And more!

The 4 steps to becoming an Enrolled Agent

The Enrolled Agent certification can be simplified into four major steps, and once these steps are completed, you will be awarded with your Enrolled Agent designation:

  1. Obtain a PTIN
  2. Schedule and pass all three parts of the Enrolled Agent exam within three years
  3. Apply for Enrollment using Form 23
  4. Pass a suitability check, which includes a tax compliance and criminal background check

For more detailed info on each step, visit our How to Become an Enrolled Agent page!

What is on the Enrolled Agent Exam?

The Enrolled Agent exam consists of three distinct parts, each testing a different section of a variety of tax topics:

  • Part 1 - Individuals
  • Part 2 - Businesses
  • Part 3 - Representation, Practices and Procedures

Within each exam part, there are major topics the IRS calls “domains.” The IRS releases an “Exam Content Outline” detailing these domains and the content tested in them, which our team of accounting experts uses to make sure our course covers everything you need to know to pass the exam.

To find out exactly what each EA exam Part covers, check out our breakdown on our About the EA Exam page here.

How long does it take to study for the Enrolled Agent Exam?

Ultimately, how long it takes to obtain Enrolled Agent status will come down to the study schedule you create and how strictly you stick to it, but one year is an attainable goal for most people.

We have prepared EAs for 25+ years, and based off of average study times we have found that tax professionals study for about 10 hours a week for 7 – 8 months, or 235 – 265 hours total. This means that you can easily become an EA in between tax seasons, making it so you can earn your credential before the next busy season.

For a more in-depth look, visit our “How Long Does it Take to Become an Enrolled Agent” blog here!

Frequently Asked Questions
About the EA Certification

What is the pass rate of the Enrolled Agent exam?

If you take an average of all three parts, the most current Enrolled Agent exam pass rate for the past yearly window is 66%. For a more detailed view of each part’s pass rate by testing window, check out our Enrolled Agent Exam Pass Rates page.

How much does an Enrolled Agent make?

The average Enrolled Agent salary in the U.S. is $64,264, while the average Tax Preparer Salary in the U.S. is $41,441 according to top salary reporting databases*. This is a difference of $22,823, or an increase of 55% annually for credentialed Enrolled agents, making an EA credential the fastest way to increase your salary as a tax preparer.

See more specifics on Enrolled Agent salary vs the Average Tax Preparer salary on our Enrolled Agent Salary page here.

*Data gathered from Indeed, ZipRecruiter, Glassdoor, and Salary.com by searching “Enrolled Agent” salaries, and “Tax Preparer” salaries

How much does it cost to become an EA?

The Enrolled Agent exam costs over $700 USD before factoring in review materials for the exam. The Enrolled Agent certification is much more accessible than other accounting certifications, such as the CPA or CMA.

For more info and a cost breakdown, visit our Enrolled Agent cost page!

What is the difference between a CPA and an EA?

Both EAs and CPAs have unique responsibilities, but an EA’s job is limited to taxation, while CPA’s have much broader responsibilities.

EAs specialize in tax-related work. They are knowledgeable about the tax code and can help individuals and businesses navigate complex tax laws.

CPAs are qualified to perform more specialized tasks, such as auditing and consulting. They may also be called upon to provide advice on financial matters for their clients or business organizations. However, this comes with an increased time to earn a CPA certification, more barriers to entry, and a higher price to earn your CPA.

At the end of the day, it depends on what you want to do with your career to decide which certification to right for you, and we’re here to help you figure that out! To see the specifics on both of these certifications, visit our EA vs CPA blog here!

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