How to Become an Enrolled Agent: A Step-by-Step Guide for Tax Pros

Did you know enrolled agents are the only federally licensed tax practitioners who can represent taxpayers before the IRS in all 50 states?

Unlike CPAs and attorneys who are licensed by states, enrolled agents enjoy unlimited practice rights with the IRS nationwide. This elite credential opens doors to higher earning potential, greater job security, and expanded career opportunityes in the tax profession.

However, the path to becoming an enrolled agent isn't always clear. Many tax professionals struggle to navigate the application process, understand exam requirements, or know which preparation materials actually work.

That's why we've created this comprehensive guide. Whether you're pursuing the Special Enrollment Examination (SEE) route or qualifying through IRS experience, we'll walk you through each step of the process—from initial requirements to final enrollment.

Ready to elevate your tax career? Let's break down exactly how to become an enrolled agent.

What is an Enrolled Agent?

 The enrolled agent (EA) designation represents the highest credential awarded by the Internal Revenue Service. These tax specialists serve as federally-authorized tax practitioners empowered by the U.S. Department of the Treasury to represent taxpayers before the IRS for various tax issues including audits, collections, and appeals.

Origins and Evolution of the EA Profession

The enrolled agent profession has a rich history dating back to 1884, following the American Civil. President Chester A. Arthur signed the Horse Act of 1884 on July 7, establishing the role of enrolled agents. This legislation emerged as a response to fraudulent war loss claims, as many citizens struggled to settle claims with the government for property confiscated during the war effort.

Initially, enrolled agents were empowered to prepare claims against the government and seek equitable justice for citizens. The title "enrolled agent" stems from being "enrolled" to practice before the Treasury Department.

The profession significantly expanded with the passage of the 16th Amendment and the Revenue Act of 1913, signed by President Woodrow Wilson. This legislation broadened the enrolled agent's scope to include claims for monetary relief for citizens whose taxes had become inequitable.

• As tax laws grew increasingly complex, the enrolled agent's role evolved to include:
• Tax return preparation for individuals and businesses
• Taxpayer advocacy and representation
• Negotiation with the IRS on behalf of clients
• Resolution of tax issues across all IRS jurisdictions

In 1972, enrolled agents united to form the National Association of Enrolled Agents to represent their interests and the rights of American taxpayers.

 

Distinctive Qualifications and Authority

Enrolled agents are the sole federally-licensed tax practitioners specializing exclusively in taxation. While CPAs and attorneys may choose to specialize in taxes, all enrolled agents focus specifically on tax matters.

To become an enrolled agent, candidates must either:

1. Pass a comprehensive three-part Special Enrollment Examination covering individual and business tax returns, plus representation issues, or

2. Qualify through relevant experience as a former IRS employee (typically requiring five years of continuous employment within the previous ten years)

Additionally, all candidates undergo a rigorous background check conducted by the IRS, including verification of past tax compliance.

Once certified, enrolled agents must complete 72 hours of continuing education every three years to maintain their credentials and stay current with changing tax laws. They must also adhere to ethical standards established by the U.S. Department of the Treasury.

 

Professional Scope and Responsibilities

Essentially, enrolled agents function as the go-to experts on tax laws. Their federal credential grants them unrestricted rights to represent any taxpayer for any tax matter across all IRS jurisdictions.

Furthermore, enrolled agents routinely:

- File tax returns for individuals, partnerships, corporations, estates, trusts, and other entities

- Provide strategic tax planning advice

- Represent clients during audits

- Advocate for clients in appeals and collections

- Offer expert guidance on tax laws and regulations

Although enrolled agents and certified public accountants both enjoy virtually unlimited practice rights before the IRS, enrolled agents typically focus more narrowly on tax matters. Unlike CPAs, enrolled agents cannot certify financial statements or provide public accounting services outside the tax realm.

With their specialized tax expertise and federal authorization, enrolled agents offer taxpayers knowledgeable representation when dealing with the often complex and intimidating world of taxation.

Eligibility Paths to Become an EA

To become an enrolled agent, you need to meet specific requirements set by the IRS. There are two main ways to earn this respected credential, and both have mandatory steps every candidate must follow. If you choose the exam route, solid Enrolled Agent exam prep will help you pass and reach your goal faster.

1. Qualifying through the SEE exam

The most common path to becoming an enrolled agent involves passing the Special Enrollment Examination (SEE). This comprehensive three-part test evaluates your knowledge of the federal tax code and representation procedures. The exam covers:

- Individual taxation (Part 1)

- Business taxation (Part 2)

- Representation, practices, and procedures(Part 3)

Each section lasts 3.5 hours and contains 100 multiple-choice questions. You must achieve a minimum scaled score of 105 out of 130 possible points to pass each part.

 

Once you pass the first section, you have two years to complete the remaining parts. This testing window allows candidates to prepare thoroughly for each section while maintaining momentum toward certification. The examination fee is $267 per part, paid when scheduling your appointment.

After successfully passing all three parts, you can apply for enrollment as an EA through Form 23.

2. Qualifying through IRS work experience

Former IRS employees can bypass the examination requirement based on their previous experience with the agency. Circular 230 specifies that applicants must have been "regularly engaged in applying and interpreting the provisions of the Internal Revenue Code and the regulations relating to income, estate, gift, employment, or excise taxes."

To qualify through this path, candidates must meet several key requirements:

• At least five years of experience in taxpayer-facing field positions such as appeals officer, revenue agent, tax specialist, or settlement officer
• Three of those five qualifying years must have occurred within the five years prior to separation from the IRS
• Must apply for enrollment within three years of IRS separation

The IRS designed these stringent requirements to ensure that the applicant's experience provides equivalent knowledge to someone who passes all three parts of the SEE.

Notably, if the former employee's experience doesn't demonstrate comprehensive tax knowledge, the IRS may grant limited rather than unlimited enrollment, restricting representation to specific areas.

3. PTIN requirement and background check

Regardless of which eligibility path you choose, all enrolled agent candidates must:

1. Obtain a Preparer Tax Identification Number (PTIN) - Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid PTIN. This identification number is required for all tax professionals, including enrolled agents.

2. **Pass a suitability check** - This comprehensive review includes:

   - A tax compliance check to verify you've filed all required returns and have no outstanding tax liabilities

   - A criminal background investigation to ensure you haven't engaged in conduct that would justify suspension or disbarment from IRS practice

The suitability check examines your financial responsibility and personal integrity. Consequently, candidates with unresolved tax issues or certain criminal convictions may be deemed ineligible for enrollment.

After meeting all requirements, you'll submit Form 23 with a $140 fee. For exam candidates, processing typically takes about 60 days, whereas applications based on former IRS employment may require approximately three months for review.

Understanding the SEE Exam

 The Special Enrollment Examination (SEE) serves as the gateway for most tax professionals seeking the enrolled agent credential. Understanding its structure, scoring system, and timeframes is crucial for exam success.

1. Exam structure and parts

The SEE consists of three distinct parts, each focusing on different aspects of tax law:

- Part 1: Individuals – Covers personal tax matters and preparation

- Part 2: Businesses – Addresses business entities and their taxation

- Part 3: Representation, Practices, and Procedures – Examines your knowledge of representing clients before the IRS

Each part contains exactly 100 multiple-choice questions and allows 3.5 hours for completion. In reality, your total appointment time will be 4 hours, which includes time for a tutorial and survey. These 100 questions include 85 scored questions and 15 experimental questions that don't count toward your score but are tested for potential future exams.

You may take the exam parts in any order based on your preparation level and comfort with the material. The annual testing window runs from May 1 through February, with no tests offered in March or April as the IRS updates the exam content during this period.

2. Scoring and passing criteria

The IRS employs a scaled scoring system that converts your raw score (number of correctly answered questions) to a scale ranging from 40 to. To pass any part of the examination, you must achieve a scaled score of at least 105.

All questions on the exam are weighted equally in the scoring process. After completing each part, you'll receive your results. Passing candidates are simply informed they've passed without receiving their specific score. Meanwhile, failing candidates receive both their score and diagnostic information highlighting areas for.

This targeted feedback helps unsuccessful candidates identify knowledge gaps before retaking the exam. The scoring methodology was determined by subject matter experts including enrolled agents and IRS representatives to establish the minimum qualification threshold.

3. How long you have to pass all parts

Once you pass your first part of the SEE, the clock starts ticking. You must successfully complete the remaining two parts within a specific timeframe from the date you passed that first section. According to the IRS, this window extends for three years.

For instance, if you pass Part 1 on November 15, 2022, and then pass Part 2 on February 15, 2023, you would have until November 15, 2025, to pass Part 3. Should you fail to meet this deadline, you would lose credit for Part 1 and need to retake it.

During each testing window, you may attempt each part up to four times. Moreover, after four unsuccessful attempts at any part within a single testing window, you must wait until the next window opens before trying again.

This structure provides reasonable flexibility while still encouraging candidates to maintain momentum toward completing their enrolled agent certification.

How to Register and Take the Enrolled Agent Exam

 Once you've decided to pursue the enrolled agent credential, registering for the Special Enrollment Examination requires creating an account with Prometric, the testing company that administers the exam.

1. Creating a Prometric account

To begin the registration process, visit Prometric's Special Enrollment Examination (SEE) webpage. First-time users must create an online account in Prometric's Candidate Management System (CMS) by following these steps:

1. Visit prometric.com/see and select "Create an Account"

2. Enter your username, email address, and password

3. Click the activation link sent to your email within 24 hours

4. Complete your profile with personal information that exactly matches your government-issued ID

5. Enter your Preparer Tax Identification Number (PTIN)

After setting up your account, you'll be able to schedule appointments, view your testing history, and manage future exams.

2. Scheduling and rescheduling policies

The exam fee for each part of the SEE is $267, paid at the time of scheduling. You can take the three parts in any order and on different days. Prometric offers several options for scheduling:

- Online through your CMS account (recommended)

- By phone at 800-306-3926 (toll-free) or 443-751-4193 (toll)

- Monday through Friday, 8 a.m. to 9 p.m. Eastern Time

After scheduling, you'll receive a confirmation number – save this for your records as you'll need it to make any changes to your appointment.

Rescheduling fees vary based on how far in advance you make changes:

- 30+ days before appointment: No fee

- 5-29 days before appointment: $35 fee

- Less than 5 days before appointment: Full exam fee ($267)

Subsequently, if you miss your appointment or arrive more than 30 minutes late, you forfeit the entire fee.

3. What to bring on test day

On the day of your exam, arrive at least 30 minutes before your scheduled time and bring:

- Valid, original, unexpired government-issued photo ID with your signature (driver's license, passport, or state ID card)

- Your name on the ID must exactly match the name used when registering

Unnecessarily, personal items are not permitted in the testing room, including:

- Cell phones

- Smart devices

- Wallets and purses

- Backpacks or bags

- Food and drinks

- Study materials

- Watches or calculators

Thankfully, the test center provides scratch paper, pencils, and a calculator for your use. Most locations offer secure lockers for storing personal belongings during the exam.

By properly preparing for the logistics of exam registration and test-day protocols, you can focus your energy on demonstrating your tax knowledge instead of worrying about administrative details.

Applying for Enrollment After Passing

 After successfully passing all three parts of the Special Enrollment Examination, you must formally apply for enrollment as an enrolled agent through a specific process established by the IRS.

1. Submitting Form 23

Form 23, officially known as "Application for Enrollment to Practice Before the Internal Revenue Service," must be submitted within one year of passing your third exam part. You have two submission options:

Electronic submission: Complete and submit Form 23 through the Pay.gov website. This method is typically faster and provides immediate confirmation that your application was received.

Mail submission: Download Form 23 from the IRS website, complete it thoroughly, and mail it with your payment to the address listed on the form

Be sure to answer all questions completely and accurately. Any omissions or false statements on your application violate Circular 230 and may result in processing delays or disbarment from practice

2. Paying the enrollment fee

The non-refundable enrollment fee for becoming an enrolled agent is $140 This amount is paid to the United States Treasury Department Payment options include:

·         Electronic payment through Pay.gov using a bank account (ACH), debit card, or credit card

·         Check or money order payable to "United States Treasury" if submitting by mail

Throughout the application process, retaining your payment confirmation is essential for tracking purposes. The fee remains the same regardless of which eligibility path you pursued (SEE exam or former IRS employee).

3. Suitability check and processing time

Once your application is received, the IRS conducts a comprehensive suitability check that includes:

Tax compliance verification: The IRS reviews your personal tax history to ensure you've filed all required returns and have no outstanding tax liabilities

Criminal background check: This assessment determines if you have any history that might disqualify you from practice

Processing times vary based on your background:

·         Standard applications take approximately 60 days

·         Applications from former IRS employees typically require 90-120 days for processing

If you haven't received a response after 60 days, you can check your application status by emailing epp@irs.gov with your full name and address, or by calling 855-472-5540.

Remember that your enrollment status is not effective until the IRS officially approves your application. You cannot practice as an enrolled agent until this final confirmation is received.

Conclusion

 Final Thoughts on Becoming an Enrolled Agent

Becoming an Enrolled Agent (EA) is a valuable step for any tax professional. EAs are the only federally licensed tax experts with unlimited rights to represent clients before the IRS. You can earn this credential by passing the three-part Special Enrollment Exam (SEE) or through qualifying IRS experience. The SEE covers individual tax, business tax, and IRS representation, and you have two years to complete all parts. After passing, you'll submit Form 23 and complete a background check to become officially enrolled.

Earning the EA designation can lead to better career opportunities, higher income, and stronger job security. To maintain your status, you must complete 72 hours of continuing education every three years. MYCPE ONE offers trusted Enrolled Agent exam prep and continuing education to help you stay on track and succeed in your EA journey.