How To Become An Enrolled Agent – A Comprehensive Guide

Acquiring the Enrolled Agent (EA) certification is an essential milestone to a successful future in the field of taxation and representation departments. It is one of the most prestigious and versatile career paths in tax representation. The IRS-licensed enrolled agents are in high demand for their skills in tax preparation, audits, and tax appeals as well as unlimited rights to represent taxpayers before the IRS. However, it is difficult to comprehend all the intricate details of tax laws and policies. Those who seek the title of EA agent need to undergo rigorous preparation requiring a thorough study of the EA syllabus.

What is an Enrolled Agent?

An Enrolled Agent is a tax practitioner authorized by the government in the United States of America and holds the highest certification granted by the Internal Revenue Service (IRS). They focus primarily on tax matters. Additionally, an EA Agent serves as a representative for individuals facing tax-related concerns such as collections processes and audit proceedings, with the IRS. The tax professional achieves the authority to represent taxpayers before the IRS by –

• Either completing an exam that assesses knowledge of individual and business tax filings as well as representation practices and procedures
• Or by demonstrating relevant experience gained as a former IRS staff members.

The IRS conducts background checks on all applicants to ensure credibility and competence in tax representation services.

Federally Authorized Tax Practitioners (FATPs)

The right to practice before the IRS is under the ambit of federal statutes. Those who are authorized to do so are called “Federally Authorized Tax Practitioners,” or “FATPs”.  Any attorney, Certified Public Accountant(CPA), and Enrolled Agent may apply to be given the status of a FATP. On qualification, they get unlimited representation privileges before the IRS. These professionals can be their customer’s representatives in different scenarios like audits, collection proceedings, payment disputes, tax refund disputes, and appeals. Enrolled actuaries and enrolled retirement plan agents are also granted FATP status with limited representation rights.

Advantages of Obtaining EA Credentials

1. Fastest Way to Secure Your Rights to Representation, by the IRS

To represent individuals in dealings with the IRS agency requires holding a CPA license or being licensed as an attorney or having EA status as an Enrolled Agent. Unlike becoming a CPA or attorney where certain educational and experiential criteria must be met; obtaining the EA designation does not need such prerequisites. However, aspiring candidates only need to complete an examination and suitability evaluation to meet the qualification standards.

2. Enhanced Job Prospects

This field provides an increasing job market. Being an Enrolled Agent (EA) could not only lead to opportunities to represent clients before the IRS but also showcase your knowledge of tax regulations and procedures effectively. Furthermore, tax professionals with an EA status will be in greater demand as regulations for taxpayers increase in the coming years.

3. Unlocking Income Opportunities

Based on data from Glassdoor, ea agents earn a starting salary of 6 -7 lakhs per annum. This can increase to 15-16 lakhs per annum with experience.  The average salary falls between 7-10 lakhs per annum.

4. Professional Development

In addition, the other reason for pursuing an EA credential is professional growth. Enrolled Agents need to regularly upskill in order to stay abreast of the current tax rules and regulations instituted by the IRS. As a result, this helps them to keep their skills sharp and knowledge abreast of the current happenings in the industry.

Steps to Becoming an Enrolled Agent

The following is the procedure to acquire an enrolled agent designation –

• Step 1: Get a PTIN – The applicant needs to create an account on the IRS Tax Professional PTIN system and enter personal and business information, previous year’s tax returns, and pay the required application fees. The applicant also needs to explain and discuss tax obligations and criminal records in the application.
• Step 2: Clear The Special Enrollment Examination(SEE)– The applicant needs to  pass the three part SEE exam within three years. The SEE exam consists of the following three parts  –

• Part 1: Individuals  
• Part 2: Businesses 
• Part 3: Representation, Practices, and Procedures

The candidate can take the exam in any order.  No specific path needs to be followed in preparation for the examinations. The IRS publishes all the required information on the internet however, it is quite overwhelming to search for necessary information. In such instances, it is recommended to use an EA study course as it enhances both the efficiency and speed of preparation for the examination.

• Step 3: Enrolment practice –  Within one year from the date of passing the SEE exam the candidate needs to submit Form 23, along with the fee for enrolment.
• Step 4: Background Check of Applicant – The IRS does a comprehensive background check to review the applicant’s personal and business tax compliance as well as any criminal record.
• Step 5: Commence your new career – Employment opportunities for enrolled agents are widespread and range from public accounting firms to sole proprietorships practicing accounting. They may even open their own tax consultancy firm. By securing an ea status, the scope of taxation preparers broadens and candidates’ dreams of career opportunities are realized.

Scope Of Work of Enrolled Agent

EA agents are very proficient in tax law and have the authority to handle:

• Tax audits
• Collections and appeals
• Tax return preparation for individuals and businesses
• Representation in disputes with the IRS 

Best Course For Enrolled Agent Near Me

About Kodakco

Kodakco is a consultancy company that offers training and expertise in upskilling & technology. It’s offices are based in Hyderabad & San Francisco. Moreover, training is provided at the B2C level to trainees in the areas of Medical, Language, Six Sigma, Design & SAP Enterprise consulting. In addition, it provides B2B consultancy and application development services in the following fields-  

• SAP Business Suite S/4HANA
• SAP Cloud Platform, Success factors
• C/4HANA with Hybris C4C along with BW/4HANA and Cloud Analytics

Indeed, Kodakco is a client centric organization that aims at adding value to its relationships with customers.

Enrolled Agent Course

If you want to be an expert Tax Advisor in the US, then the Enrolled Agent Course is for you. This course will provide you with the chance to prepare for the SEE exams. It will hone you into a tax expert under the guidance and care of Kodakco’s tax expert faculty enabling you to reach your aim. Additionally, the course also offers expert help and guidance in the CPA and Bar Exams study along with representing your clients to an IRS.

This is a 5 in 1 course which includes Training, Projects, Assignments, Certification, and Placement Support. It provides the trainees with both concept learning and on-field experience that helps them become more skilled and competent when they step into a career in this field. The course provides hands-on experience in relevant industry projects, 

Conclusion

Certainly, becoming an Enrolled Agent offers a foot in the door to a promising and rewarding career within this fast-changing area that is taxation. EAs help in demystifying complex tax laws by providing services from taxation consulting to IRS representation and corporate advisory. Since the need for their knowledge is on a steady growth having become an EA assures you of a great career.

FAQs