FAQ

Frequently Asked Questions

What is an Enrolled Agent (EA)?
An EA is an individual who has demonstrated technical competence in the field of taxation and can represent taxpayers before all administrative levels of the Internal Revenue Service.

What does the term "Enrolled Agent" mean?
"Enrolled" means EAs are licensed by the federal government.  "Agent" means EAs are authorized to appear in place of the taxpayer at the Internal Revenue Service.  Only EAs, attorneys and CPAs may represent taxpayers before the IRS.  The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the Treasury Department.

How can an EA help me?
EAs advise, represent and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and entities with tax-reporting requirements. EAs prepare millions of tax returns in a typical year.  EAs' expertise in the continually changing field of tax law enables them to be effective representatives when taxpayers are audited by the IRS.

What are the critical differences between EAs and other tax professionals?
Only EAs are required to demonstrate to the Internal Revenue Service their competence in matters of taxation before they may represent a taxpayer before the IRS.  Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all EAs specialize in matters of taxation.  EAs are also the only taxpayer representatives who receive their right to practice from the United States Government, (CPAs and attorneys are licensed by the states). Because of the difficulty in becoming an EA and keeping up the required credentials, there are fewer than 30,000 EAs in the United States.

How can I become an EA?                                                                           The Enrolled Agents Exam is given annually on the same two days nationwide (normally the last week in September).  The two-day exam is administered by the U. S. Treasury Department and is a four-part exam.  Part One deals with Individual Taxation, Part Two is Sole Proprietorships and Partnerships, Part Three consists of Taxation of Corporations, Fiduciaries, Estate and Gift Tax, and Trusts, Part Four is IRS Administration, Ethics and Other Topics.

In order to sit for the exam, the candidate must file Form 2587 Application for Special Enrollment Examination along with a $55.00 exam fee with the U. S. Treasury, Internal Revenue Service Enrollment, P. O. Box 845854, Dallas, Texas 75284-5854, no later than July 31st of the year in which the exam is to be taken.   Candidates are usually notified of exam results by the first week in March of the following year.  

Upon successful completion of the exam, the candidate must file Form 23 Application for Enrollment to Practice Before the Internal Revenue Service, with an $80.00 fee for a background check.  The background investigation is similar to the one to obtain a Government Security Clearance.  The background check routinely takes six to eight weeks.

After receiving your U. S. Treasury Card to practice before the Internal Revenue Service, you must obtain seventy-two (72) hours of qualifying Continuing Professional Education every thirty-six (36) months in order to keep the License current.  

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