Become an Enrolled Agent
How do you become an enrolled agent?
There are two tracks to become an enrolled agent, which are outlined in Treasury Department Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers Before the Internal Revenue Service. The IRS website also provides information on the enrollment process. The two tracks are:
- Online examination. You can become an enrolled agent by demonstrating special competence in tax matters by taking an online examination administered by Thomson Prometric. This track requires that you -
- Apply to take the Special Enrollment Examination (SEE);
- Achieve passing scores on all parts of the SEE;
- Apply for enrollment on Form 23; and
- Pass a background check to ensure that you have not engaged in any conduct that would justify your suspension or disbarment practice before the IRS.
- IRS experience. You can become an enrolled agent by virtue of past service and technical experience with the IRS that qualifies you for enrollment. This track requires that you -
- Possess the years of past service and technical experience specified in Circular 230;
- Apply for enrollment on Form 23; and
- Pass a background check to ensure that you have not engaged in any conduct that would justify your suspension or disbarment from practice before the IRS
About the Special Enrollment Exam (S.E.E.)
IR-2006-92, June 7, 2006
WASHINGTON — Internal Revenue Service officials today announced further details of the Special Enrollment Examination in 2006.
In April, the IRS announced that Thomson Prometric, a global testing firm, had been selected to develop and administer a computer-based version of the exam on behalf of the IRS. At that time, the IRS announced that the new exam was to be four parts. However, based on a Thomson Prometric analysis of the tasks and knowledge required of an enrolled agent, IRS officials have decided to accept their recommendation that the exam be three parts.
The parts of the new exam will be:
- Part 1 – Individuals
- Part 2 – Businesses
- Part 3 – Representation, Practice and Procedures
Generally, passing the Special Enrollment Examination (SEE) enables an individual to become an enrolled agent through demonstrating special competence in tax matters. Those who pass the SEE also undergo an additional background check before enrollment.
An Enrolled Agent is a person who has earned the privilege of practicing before the IRS. Enrolled agents, like attorneys and certified public accountants (CPAs), can represent taxpayers in both examinations and collection matters. There are currently about 40,000 active Enrolled Agents licensed by the Department of the Treasury.
- Additional details of the exam available at this time include:
- Each part of the new exam will have about 100 questions.
- Candidates will not be required to take all parts in one sitting.
- The new exam is scheduled to be available in October.
- The examination will be offered at approximately 300 testing centers operated by Thomson Prometric. Previously, the IRS has only been able to offer testing at about 90 locations. Candidates will take the examination at a computer terminal.
The IRS anticipates that complete information on the new exam will be available later this month. Just released, was a detailed outline of topics to study for each part of the exam. As more information becomes available, you will find it on the Thomson Prometric web site.
Studying for the Special Enrollment Exam (S.E.E.)
Exams questions and answers from previous years’ exams can be downloaded from the IRS website, www.irs.gov. In addition, there are many resources available to help you prepare for the exam. Many of these resources are advertised in the NAEA EA Journal, but the following is a short list for your convenience:
What do I need to do to keep my license?
Enrolled Agents renew on a staggered schedule, based on the last digit of the enrolled agent’s social security number. To be eligible for renewal for the enrollment cycle, Enrolled Agents must complete 72 CPE credit hours for the three year cycle, with a minimum of 16 CPE per year. Two CPE credit hours per year must be in Ethics.
To qualify for continuing professional education credit, a course of learning must be designed to enhance an enrolled agents professional proficiency in Federal taxation or Federal tax related matters. This would include accounting courses, tax preparation software and/or ethics courses.
The field(s) of study should include subjects dealing with federal tax compliance and tax planning. Compliance covers tax return preparation and review and IRS examinations, ruling requests and protests. Tax planning focuses on applying federal tax rules to prospective transactions and understanding the tax implication of unusual or complex transactions.
Members of the National Association of Enrolled Agents are required to earn 90 CPE hours in a three year cycle, with a minimum of 24 CPE hours per year.
Need more information regarding Enrolled Agents? Contact the National Association of Enrolled Agents at 202-822-NAEA (6232) or info@naeahq.org; visit the Internal Revenue Service website at www.irs.gov; or contact the Enrolled Practitioner Program Unit in Detroit Computing Center at 313-234-1280 or EPP@irs.gov.
