Taxes What Is an Enrolled Agent? By William Perez Updated on January 5, 2022 Reviewed by Lea D. Uradu In This Article View All In This Article Definition and Example of an Enrolled Agent How Being an Enrolled Agent Works Enrolled Agents vs. CPAs Do I Need an Enrolled Agent? Photo: PeopleImages / DigitalVision / Getty Images Definition An enrolled agent (EA) is a tax professional who has passed an Internal Revenue Service (IRS) test covering all aspects of taxation, and a scrupulous background check. The "EA" designation is the highest tax credential recognized by the IRS. Key Takeaways An enrolled agent is the highest tax professional designation recognized by the IRS.Enrolled agents (EAs) must pass a three-part exam or have worked for the IRS for no less than five years in a position that requires extensive knowledge of the tax code.EAs must be current with their own tax returns, and their taxes due must be paid up and current.EAs focus entirely on tax issues, while CPAs most commonly specialize in accounting. Definition and Example of an Enrolled Agent To earn the "EA" designation, a tax professional must pass an IRS test and background check. Those who pass are literally tax experts. Enrolled agents focus exclusively on tax issues, including audits, appeals, and collections. They're said to be "enrolled" because they're specially licensed by the federal government. An enrolled agent is the only type of tax professional who has this type of relationship with the IRS. Acronym: EA Note As of the most recent count in September 2021, there were more than 63,000 EAs in the U.S. and Canada. How Being an Enrolled Agent Works Like CPAs and tax attorneys, EAs can handle all types of tax matters and can represent their clients' interests before the IRS. The client does not necessarily have to be present. EAs are authorized to appear in place of their clients. EAs have limited client privilege under the terms of the IRS Restructuring and Reform Act of 1998. The Act provides for confidentiality between the agent and their client under some circumstances involving audits and collections. Note Your EA does not have to divulge information to the IRS that you've confided in them unless it concerns the preparation and filing of your tax returns. Requirements for Becoming an EA An enrolled agent must take and pass the IRS Special Enrollment Examination (SEE), although a college degree isn't necessary. The exam is eight hours over two days, and it covers all aspects of federal tax law, including taxation of individuals, corporations, and partnerships. It includes various regulations governing IRS collections and audit procedures. The exam is three parts, and enrolled agents must achieve scaled passing scores of at least 105 in all three sections: one for personal tax issues, one for business taxes, and one regarding procedural issues and representing clients. Note Generally, an agent can "save" their passing scores for up to two years and only retake the portion they didn't achieve a passing score on if they pass one or two sections on the first try. In light of the Covid-19 pandemic, this two-year carryover was temporarily extended to three years for test-takers whose scores were due to expire between February and June of 2020. The test can be taken from June 1 through the end of February of the subsequent year. This allows the IRS time to update the test annually to accommodate current tax law. A tax professional can also qualify as an EA if they've worked for the IRS for at least five years in a position that requires extensive knowledge of the tax code and its applications. EAs must also have or obtain a Preparer Tax Identification Number (PTIN) from the IRS, but this is required of anyone who prepares or helps a taxpayer prepare a federal tax return. PTINs must be renewed periodically. An enrolled agent must additionally pass a "tax compliance check." Their own personal tax records must be in order. They can't owe the IRS and must have filed all their tax returns due to date. Ongoing Requirements for EAs EAs must complete 72 hours of continuing education courses every three years. Those who are also members of the National Association of Enrolled Agents (NAEA) must complete 30 hours per year for three years for a total of 90 hours. Enrolled agents are held to the standards of the Department of Treasury's Circular 230, which lists IRS regulations. NAEA members must additionally comply with the Association's code of ethics and rules of professional conduct or they risk losing their memberships. Note The EA designation can be revoked for malpractice by the IRS Office of Professional Responsibility. Enrolled Agents vs. CPAs The qualifying requirements for EAs are generally more stringent than those that must be met by certified public accountants (CPAs), but each state sets its own requirements for CPAs. Continuing education requirements for CPAs can also vary by state. Enrolled Agents Certified Public Accountants Must pass a comprehensive three-part exam. Must pass a comprehensive multi-part exam, depending on the state. Must complete 72 hours of continuing education every three years. Must have one year's experience working under a CPA. Works exclusively with tax issues. Works in accounting, not necessarily with tax issues. Do I Need an Enrolled Agent? EA eligibility is stringent and exacting, so EAs advertise their status, and rightly so. You should find the "EA" designation following their names in professional directories or online. You can also call 800-424-4339, call an EA referral service, or visit the NAEA website for a complete list of current agents. Keep the continuing education and ethical requirements in mind if you select someone from a directory. Someone who was an EA yesterday might not still be an EA today. Do a little homework and check with the EA referral service or the NAEA as well. You can also verify an enrolled agent's status directly with the IRS. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Internal Revenue Service. "Active Enrolled Agents Listing." Internal Revenue Service. "13.1.2 Internal Revenue Service Restructuring and Reform Act of 1998 (RRA98)." NAEA. "Enrolled Agent Examination." Internal Revenue Service. "Enrolled Agent News." Internal Revenue Service. "Enrolled Agent Information for Former IRS Employees." Internal Revenue Service. "Become an Enrolled Agent." Internal Revenue Service. "Treasury Department Circular No. 230." NJCPA. "Requirements—How to Become a CPA." HP.org Legal Resources. "Enrolled Agent (EA) vs. Certified Public Accountant (CPA)." Related Articles What Is an Enrolled Agent (EA)? Best Series 65 Exam Prep Courses How To Prepare for the IRS Enrolled Agent Exam CPAs vs. Licensed Tax Preparers Why Small Businesses Need a CPA Best Personal Trainer Certification Programs A Guide to Professional Designations in the College Planning Industry Best Online Nutrition Certification Programs of 2024 How To Find the Right Tax Accountant Degrees & Certifications Who Can Prepare Your Small Business Taxes Best Real Estate Exam Prep Courses Best Fundamentals of Engineering Exam Prep Courses The 5 Best Online Real Estate Schools for May 2024 Best PHR Exam Prep Courses Best HIPAA Training Programs Newsletter Sign Up By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookies Settings Accept All Cookies