If you are considering a career in tax representation and compliance, becoming an Enrolled Agent (EA) could be the perfect path for you. Before diving into the specifics, you must grasp the intricacies of the Enrolled Agent profession.
EAs are federally authorized tax practitioners with the authority to represent taxpayers before the Internal Revenue Service (IRS). They play a crucial role in providing expert guidance on tax matters, ensuring compliance with tax laws, and advocating for taxpayers’ interests.
However, becoming an Enrolled Agent requires careful consideration of the requirements, responsibilities, and challenges associated with the profession. From fulfilling rigorous educational and testing requirements to maintaining ongoing continuing education, becoming an EA demands dedication, time, and effort.
In this guide, we’ll provide valuable insights into the Enrolled Agent certification process, including the steps you need to take.
What are the Steps to Obtain EA Certification?
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Obtain a Preparer Tax Identification Number (PTIN)
To start, individuals need a PTIN from the IRS. This identifier is vital for tax professionals, allowing them to legally prepare and file tax returns for clients. Getting a PTIN involves completing the IRS’s online registration process, providing personal and professional details, and agreeing to IRS regulations regarding tax preparation.
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Schedule and Prepare for the Special Enrollment Examination (SEE)
Prospective Enrolled Agents must pass the SEE – a comprehensive three-part exam covering individual taxation, business taxation, and representation practices. To prepare, candidates can access resources like the SEE Candidate Information Bulletin and sample questions provided by Prometric. Adequate preparation ensures candidates are well-equipped to achieve passing scores within the three-year validity period.
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Apply for Enrollment
After passing the SEE, candidates apply for enrollment as Enrolled Agents with the IRS. This entails completing Form 23, either electronically via Pay.gov or through mail, and submitting the requisite enrollment fee. The application process verifies eligibility for EA status and ensures compliance with IRS regulations governing tax practitioners.
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Undergo a Suitability Check
As part of the enrollment process, individuals undergo a suitability check conducted by the IRS. This check verifies tax compliance, ensuring all necessary tax returns are filed and there are no outstanding tax liabilities. Additionally, a criminal background check may be conducted to assess suitability for EA certification.
Also Read: All About Enrolled Agents: A Complete Guide
What is the PTIN Application Checklist?
Before starting your PTIN application process, ensure you have the following information readily available:
- Social Security Number
- Personal information: Name, mailing address, and date of birth
- Business information: Name, mailing address, and telephone number
- Previous year’s individual tax return details, including name, address, and filing status
- Explanations for any felony convictions or issues with U.S. tax obligations
- Credit/Debit/ATM card for the $19.75 PTIN user fee (non-refundable)
- Any U.S.-based professional certification information, such as CPA, attorney, etc.
Once you have gathered all necessary information, follow these steps to obtain your PTIN:
- Provide your name and email address to create an account. You will receive a temporary password via email, which you will change when entering your information in the PTIN application.
- Complete the online application by entering personal information, details about your previous year’s tax return, professional credentials, and more.
- You will be directed to a partner bank to make the $19.75 payment.
- Upon completing the online application, your PTIN will be provided to you online.
Recommended Read: A Complete Guide to CPA Certification
FAQs
What is Enrolled Agent Certification?
Enrolled Agent (EA) certification is a designation granted by the IRS to tax professionals who demonstrate expertise in tax matters and meet specific requirements set by the IRS.
How long does it take to obtain a PTIN?
The process of obtaining a PTIN typically takes a short time. Once you have gathered all the required information and completed the online application, you will receive your PTIN immediately upon submission of your application.
What does the suitability check conducted by the IRS entail?
The suitability check conducted by the IRS assesses various aspects of an individual’s background to ensure they are suitable for obtaining an EA certification. This check typically includes a review of the individual’s tax compliance history, ensuring all necessary tax returns are filed and there are no outstanding tax liabilities. Additionally, the IRS may conduct a criminal background check to evaluate the individual’s suitability for representing taxpayers before the IRS.
How often do Enrolled Agents need to renew their certification?
EAs need to renew their certification every three years. This renewal period aligns with the cycle for completing 72 hours of continuing education required by the IRS. EAs must ensure they meet the continuing education requirements and submit their renewal application to maintain their EA status.
