The journey to become an Enrolled Agent is a significant commitment towards a rewarding career in taxation. EAs play a pivotal role in representing taxpayers before the Internal Revenue Service (IRS), providing invaluable expertise and advocacy in matters of tax compliance, appeals, and more.
As with any professional pursuit, the path to becoming an EA is filled with questions, uncertainties, and inquiries. Understanding the intricacies of this process is crucial for aspiring professionals aiming to deal with the complexities of taxation law.
In this comprehensive guide, we aim to address the most Frequently Asked Questions (FAQs) related to becoming an Enrolled Agent. Whether you’re considering this career path for the first time or seeking to deepen your understanding as a tax professional, this resource can provide clarity, insights, and actionable guidance.
What is an enrolled agent?
An Enrolled Agent (EA) is a tax professional authorized by the U.S. Department of the Treasury to represent taxpayers before the IRS. EAs have unrestricted practice rights, allowing them to advise or represent individuals, businesses, estates, trusts, and any entity with tax-reporting requirements. EAs often specialize in tax law and provide expert guidance on complex tax matters, making them valuable assets for taxpayers seeking professional assistance.
Also Read: All About Enrolled Agents: A Complete Guide
How do you become an enrolled agent?
Becoming an Enrolled Agent involves several key steps, including the following:
- Start by acquiring a PTIN from the IRS which is necessary for those who prepare or assist in preparing federal tax returns.
- Apply for the Special Enrollment Examination – a comprehensive test covering various aspects of taxation, ethics, and representation practices.
- Successfully pass all three parts of the SEE, demonstrating proficiency in tax law and related topics.
- After passing the SEE, submit an application for enrollment to become an EA with the IRS.
- As part of the enrollment process, undergo a suitability check. This includes verifying tax compliance by ensuring all necessary tax returns are filed and addressing any outstanding tax liabilities. Additionally, a criminal background check may be conducted.
How much does it cost to take the Special Enrollment Examination?
The SEE incurs a cost of $259 per part. This fee is payable at the time of scheduling the examination appointment. It’s important to note that the test fee for each part of the SEE is non-refundable and non-transferable. Therefore, individuals should plan accordingly and ensure they are fully prepared before scheduling their examination appointments to avoid any unnecessary expenses.
What kinds of tax-related matters might hinder the approval of an enrollment application?
Typically, any outstanding tax returns or unpaid taxes can affect the consideration process unless satisfactory payment arrangements have been made. Applicants must address any tax issues promptly and ensure compliance with tax obligations to enhance their chances of enrollment approval.
What kinds of criminal convictions could hinder the approval of an enrollment application?
Typically, any felony conviction under federal tax laws or the one related to dishonesty or breach of trust, which occurred within the past decade, may negatively impact the consideration process. Applicants must disclose any relevant criminal history and demonstrate rehabilitation to mitigate potential concerns during the enrollment review.
Are there ongoing education obligations for enrolled agents?
Enrolled agents typically need to fulfill a minimum of 72 hours of continuing education per enrollment cycle, which spans three years. Each year, they must complete at least 16 hours, with two hours dedicated specifically to ethics. Additionally, enrolled agents are required to select IRS-approved continuing education providers to ensure the quality and relevance of their educational pursuits.
