You must pass all four parts of the CPA Exam within a rolling 18-month period that begins as soon as you pass your first exam section. Once you pass your first section, you have 18 months to pass the remaining three sections. If you don’t pass the remaining sections within this time, you will lose credit for the first section you passed. You must then pass that section and any other unpassed sections within 18 months of the time you passed your second section.
Enrolled Agent vs. CPA: Which Certification is Better for You?
On the other hand, the CPA Exam has four parts and much broader content. The section equivalent to the EA exam is Regulation (REG), and only about 70% of the REG content directly relates to the EA exam. The main difference between these two processes is the manner in which you fulfill the basic requirements. LegalZoom provides access to independent attorneys and self-service tools.
What happens when I pass the EA Exam?
And their unlimited rights to represent taxpayers before the IRS really sets them apart from standard tax preparers. They have a reputation for accounting and legal excellence because the process of landing these positions is demanding. In the tax preparation industry, EAs enjoy the same stature of quality and competence.
Background check
When studying for the examination, you may wish to refer to the Internal Revenue Code, Treasury Department Circular 230, IRS publications, and IRS tax forms and their accompanying instructions. Circular 230, current and prior year versions of IRS publications, forms and instructions are accessible online at IRS.gov. You may also wish to search the internet is it hard to become an enrolled agent for commercially available materials and preparation courses in preparing to take the SEE. The IRS has a list of approved CE providers, some of whom provide SEE test preparation courses. The IRS does not make recommendations as to any specific provider. Generally, enrolled agents must obtain a minimum of 72 hours per enrollment cycle (every three years).
But to earn this credential, you first need to pass the IRS’s Special Enrollment Exam, more often called the Enrolled Agent Exam. Find all the details you need to know about the Enrolled Agent Exam and prepare for success as you journey toward getting your credential. As an enrolled agent, you have several career https://www.bookstime.com/ options ahead of you as qualified tax professionals are in high demand. The most common places of employment for EAs are public accounting firms, both small and large, working as tax staff to prepare returns for a wide variety of clients. Enrolled agents don’t work for the IRS; they work for taxpayers.
So, if you think your taxes are too complicated to file yourself using online software and are looking for help from a professional, consider hiring an enrolled agent. EA candidates with IRS experience must fill out a form, undergo a background check, and have their tax transcripts reviewed. For these reasons, you can offer a wide range of services to the public and set yourself apart from your unenrolled peers. According to the National Association of Enrolled Agents (NAEA), an enrolled agent is a tax practitioner with technical expertise in taxation. Additionally, an EA enjoys full authorization to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS). If you receive a score of 105 or higher, the computer will reveal a “passing” credential.
Will the examination be open book or resource assisted? (reviewed Oct. 19,
- If you need an expert to tell you how to position your business to minimize your tax bill, talk to a CPA that has experience with tax filing and compliance.
- The path to an enrolled agent career is often more accessible than becoming a CPA.
- Please be aware, the privacy policy may differ on the third-party website.
- I suggest that you start studying before you schedule your first exam date.
- For more information on the exams, check out our free EA Exam Guide and our CPA Exam Guide.
By definition, an enrolled agent (EA) is a tax professional who has achieved the highest credential the Internal Revenue Service offers. EAs are federally authorized to represent taxpayers before the IRS and, like CPAs and attorneys, have unlimited representation rights. This means EAs can represent any taxpayer, whether they prepare returns for them or not. EAs can also represent any tax matter and appeal to any office of the IRS. Unlike the CPA credential, which falls under state boards for licensing, continuing education, and other compliance matters, the EA credential is valid in any state.
- But they also found that the EA exam questions were more straightforward.
- Therefore, if certain obstacles prevent you from earning the CPA, but you plan to specialize in tax, you can get the EA license and be just as capable.
- Former IRS employees who dealt with tax issues for at least five years need not take the SEE.
- Enrolled Agents must complete 72 hours of continuing education (CE) over the 3-year enrollment period.
- Rather, it simply demands that you know the content thoroughly.
- As you can see, when it comes to taxes, there is nothing you can’t do as an EA.
- EAs can represent any organization or individual nationwide in their tax issues before the IRS, opening an abundance of job opportunities.
We also recommend finding the time and place you study best and make an effort to use it consistently. The less you have to distract you, the more you’ll get out of your study sessions. Earning your Enrolled Agent credential opens the doors to wider career opportunities than you would otherwise have. In addition to opening your own tax firm or consultation company, you can also pursue government careers and may be highly sought after by businesses and corporations. However, statistically, the business section of the exam is the most difficult, with only about a 60% average passing rate. If you pass, you will be told only that you passed and not given your score.
Instead, you can complete more complicated tax returns, which means you can increase your earning potential. In addition to your IRS requirements, you will also want to maintain your professional status. Stay familiar with IRS collections, appeals, and audit processes.