Become an Enrolled Agent

What is an enrolled agent?

An enrolled agent is a person who has earned the privilege of practicing, that is, representing taxpayers, before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants (CPAs), are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before. Enrolled Agents are licensed by the Department of Treasury, and can represent taxpayers throughout the United States.

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 a online examination administered by Thomas Prometric. This track requires that you -
  • Apply on Form 2587 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 the suspension or disbarment of an attorney, CPA, or enrolled agent from 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 Form 23; and
  • Pass a background check to ensure that you have not engaged in any conduct that would justify the suspension or disbarment of an attorney, CPA, or enrolled agent from practice before the IRS.

Special Enrollment Exam (SEE)

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.

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.

Carryover Transition Rules Under previous rules, subject to certain restrictions, some candidates who did not pass all four parts of the IRS Special Enrollment Examination could carryover scores for the sections they passed. For the new format of the exam, the following transition rules will be in effect.

Subject to the conditions noted below, candidates who were eligible to carryover passing scores under the IRS four part format will not be required to take the corresponding part of the Thomson Prometric three-part examination.

Candidates who only passed part two or only part three under the old format must retake part two under the new exam format.

The above transition carryover rules are subject to the following restrictions:

• In order to carryover scores from the IRS format to the Thomson Prometric format, candidates must meet prior minimum retention rules for carryover; specifically the candidates must have been notified by the IRS that they could carryover scores for the parts passed.
• Candidates applying carryover scores from the IRS format to the Thomson Prometric format may only do so through December 31, 2007. Consequently, individuals who passed part(s) of the 2003, 2004 or 2005 exams (and met prior minimum retention rules for carryover) would have until December 31, 2007 to pass the remaining part(s) of the exam.
• Candidates who passed parts of the 2002 exam or earlier exams may not carryover their scores. They have used up all remaining attempts to pass the exam under the former rules.

Complete information on the new exam can be found at www.prometric.com/irs.

Studying for the Special Enrollment Exam

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:

• NAEA State Affiliate SEE Prep Courses posted on NAEA Web Site
• IRS "Federal Tax Products" cd (1-877-233-6767 or www.irs.gov)
• Arthur EA Review, Inc. Home Study Course & Seminars (www.eareview.com)
• FASTAX EA Study Guide (www.fastax-ea-exam.com)
• GLEIM Enrolled Agent Review (www.gleim.com)
• The Phoenix Tax Group (www.phoenixtax.com)
• The Tutorial Group (www.tutorialgroup.com)
• Thomas Tax Seminars (www.thomastaxseminars.com)
• WiseGuides, Inc. (www.wiseguides.com)

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 New Mexico Society of Enrolled Agents and 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.

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