Those who want to become skilled tax advisors in the United States should take the Enrolled Agent course. It will enable you to get ready for the SEE tests, which will help you accomplish your goal in the allotted time. The IRS SEE, CPA exam, and Bar exam are the three components of the Special Enrollment Examination. The IRS SEE is the simplest and most fundamental level test out of these three.
EA Exam Eligibility 2024
You are not required to have any prior qualifications in order to pursue EA. Graduates with a foundational understanding of accounting are welcome to apply, but they will need to prove that they are knowledgeable about the tax topic. There are two ways that students can sign up to be agents:
1. Pass the three portions of the Special Enrollment Examination (Businesses, Individuals, and Representation, Practices and Procedures), which covers a wide range of topics related to the Internal Revenue Code. This is the first step towards becoming an EA. A candidate must get a PTIN in order to sit for the Special Enrollment Examination. The exam's components can be taken in any order. The only prerequisite to earning the EA certification is passing all three exam sections; no further prerequisites exist.
2. IRS Experience: The applicant must have worked for the IRS for the past five years in a capacity that regularly involved applying and interpreting rules and regulations related to income, inheritance, gifts, employment, and excise taxes under the Internal Revenue Code.
Enrolled Exam (EA) Exam Fees 2024
|
Fees Details
|
Fees in US$
|
Fees in Rupees ₹
|
|
PTIN Fees
|
$35.95
|
3,000 (Approx.)
|
|
Testing Fees
|
$203/per part
|
17,000 (Approx.)
|
|
Enrollment to Practice Fees
|
$67
|
6,000 (Approx.)
|
EA Exam Pattern 2024
In the EA exam, all the questions are multiple-choice. These questions are categorized into three different types:
- Incomplete Sentence
- Direct Question
- All of the Following Except
There are three sections of the EA exam: Businesses, Individuals, and Representation, Practice, and Procedures. The computer-based test is offered at Prometric testing locations across the country.
Part 1: Individuals Exam
- 100 MCQs
- 3.5 Hours
- 15 minutes break after completing 50 MCQs (i.e. Section 1)
- Results: Instantly after the exam
- Test Fees: $203
Part 2: Businesses
- 100 MCQs
- 3.5 Hours
- 15 minutes break after completing 50 MCQs (i.e. Section 1)
- Results: Instantly after the exam
- Test Fees: $203
Part 3: Representation, Practices and Procedures
- 100 MCQs
- 3.5 Hours
- 15 minutes break after completing 50 MCQs (i.e. Section 1)
- Results: Instantly after the exam
- Test Fees: $203
Scope of an Enrolled Agent (EA) 2024
1. Validation of Tax Knowledge: As the highest certification offered by the IRS, an EA is a straightforward way to indicate that the person possessing the license has a very high level of tax experience. Because the Department of Treasury is in charge of them, EA credentials are recognized and accepted across the country. Obtaining an EA license allows a tax accountant to become a member of a select group of professionals recognized as tax experts.
2. Career Growth chances: Tax accountants with an EA license are in great demand when it comes to work chances in tax firms, government agencies, or as a CPA in the private sector. Enrolled Agents are knowledgeable about a wide range of tax matters that impact both individuals and businesses. Furthermore, having an EA on one's resume makes it easier to differentiate one from the competitors while searching for jobs.
3. Greater Earnings Potential: The opportunity to earn more money is one of the significant benefits that an EA license may provide. A tax accountant may be able to grow in their career and increase their pay by several thousand dollars by earning an EA.
4. Firm and steady Employment: People require EA as long as they are making tax payments. Even in tough times, those with the Enrolled Agent credential would continue to operate in their respective fields. Enrolled agents will always be needed, even in these hard economic times. Furthermore, the pay for enrolled agents in India is rather good, with annual salaries ranging from INR 5 lakh to INR 12 lakh.
Enrolled Agent Course Syllabus 2024
EA Part: 1 – Individuals:
The first part of the EA exam covers 5 sections:
- Preliminary Work and Taxpayer Data (15%)
- Specialized Returns for Individuals (15%)
- Taxation and Advice (20%)
- Deduction and Credits (25%)
- Income and Assets (25%)
EA Part: 2 – Business:
The second part includes 3 topics:
- Specialized Returns and Taxpayers (15%)
- Business Financial Information (40%)
- Businesses (45%)
EA Part: 3 – Representation:
The third part is broken down into 4 sections:
- Completion of the Filing Process (17%)
- Specific Types of Registration (25%)
- Representation before the IRS (25%)
- Practices and Procedures (33%)
EA Exam Duration 2024
The Enrolled Agent course takes a minimum of six months to finish, depending on the candidate's commitment and focus.
EA Exam Passing Criteria 2024
The minimal degree of knowledge considered appropriate by professionals practicing before the IRS is 105, which is the scaled passing score given by the IRS. Exam results are private information that is only shared with the individual. Examinees may take each section of the test independently and in any sequence. After the first passing section of the exam, they have two years to finish all three parts of the test.
To sum up, the Enrolled Agent examination is a thorough assessment of one's understanding of federal tax rules and regulations. Acquiring the status of Enrolled Agent is a fantastic method to exhibit proficiency in tax law and provide counsel to the IRS. To become an Enrolled Agent, candidates must pass all three exam sections. They have two years from the date of the first passing section to finish all three sections.
Perks of being an Enrolled Agent:
- Being an Enrolled Agent has many benefits, one of which is increasing authority and respect among colleagues.
- Enrolled Agents are exempt from certain state fees, license limitations, and testing requirements that are imposed on Tax Return Preparers.
- Enrolled Agents are the most seasoned tax specialists; they have been in the business since 1884.
- The possibility of helping suggested clients with IRS issues.
- If a client conversation involves non-criminal tax issues or procedures, it is confidential.
Step by step procedure to become an Enrolled Agent 2024
The following is a list of steps to become a certified EA:
- Examine the specifications: The IRS website has a list of the specific prerequisites that candidates must meet in order to take the EA test. For candidates to provide tax advising, compliance, or representation services, they must have five years of customer-facing experience. They also need to pass a three-part test that covers both company and individual tax law.
- Complete Form 23 (IRS Enrolled Agent): The next step is to complete IRS Form 23, the application for enrollment as an agent. This form must be signed by a candidate who is also a licensed attorney or certified public accountant.
- Pay the application fee: Form 23 and a $182 application fee are required.
- Schedule a time for fingerprints: The candidate must submit Form 23 together with the necessary application fee, and then schedule a time for fingerprinting. Fingerprints will be used for the background check, which is a requirement of the registration process.
- Pass the Enrolled Agent Exam: The three sections of the exam include both corporate and individual tax law topics. In order to obtain certification, candidates need to pass each of the three exam portions.
- Get a Personal Tax Identification Number (PTIN): After passing the Enrolled Agent Exam, candidates need to apply for a Personal Tax Identification Number. You need to have a PTIN in order to represent clients before the IRS.
- Maintain your certification up to date: Every three years, enrolled agents need to complete a minimum of 72 hours of continuing education credits in order to maintain their certification. (One must accrue credits equal to at least 16 hours annually).
- In audits, collections, and appeals, enrolled agents are permitted to represent taxpayers before the IRS at all administrative levels. They can also draft and sign tax returns on the taxpayer's behalf. If a career in public accounting or tax preparation appeals to you, being an enrolled agent is a great place to start.
