An enrolled agent (EA) is a federally authorized tax practitioner empowered by the U.S. Department of the Treasury to represent taxpayers before the IRS. The IRS awards enrolled agent status as its highest credential.
EAs hold unlimited practice rights, meaning they face no restrictions on which taxpayers they can represent, what tax matters they can handle, or which IRS offices they can appear before. This places them alongside CPAs and attorneys as one of only three professional groups with full representation authority.
How to Become an Enrolled Agent
Two paths lead to enrolled agent status:
Path 1: Pass the Special Enrollment Examination (SEE)
The three-part exam covers individual tax returns, business tax returns, and representation practices. Each section contains 100 questions and runs 3.5 hours, with actual seat time of 4 hours including tutorial and breaks. The scaled passing score sits at 105 on a scale from 40 to 130. Candidates pay $267 per part at scheduling, and fees are non-refundable and non-transferable.
Path 2: Former IRS Experience
Certain former IRS employees qualify without taking the exam. Candidates must have worked at least five years in positions regularly applying and interpreting the Internal Revenue Code, with three of those five years occurring within the last five years before IRS separation. Qualifying positions include appeals officer, special agent, revenue officer, revenue agent, tax specialist, tax law specialist, or settlement officer.
Requirements and Qualifications
All enrolled agent candidates must:
- Obtain a Preparer Tax Identification Number (PTIN) from the IRS
- Pass a suitability check covering tax compliance and criminal background
- File all necessary tax returns with no outstanding tax liabilities (or acceptable payment arrangements in place)
- Adhere to Treasury Department Circular 230 ethical standards
The suitability requirements ensure candidates maintain proper tax compliance and meet background standards before receiving authorization.
Continuing Education Requirements
Enrolled agents must complete 72 hours of continuing education every three years. The IRS enforces strict annual minimums:
- Minimum 16 hours per year
- Minimum 2 hours on ethics or professional conduct each year
- All courses must come from IRS-approved CE providers
EAs who receive initial enrollment between November 1 and April 1 of their applicable renewal period are not required to renew until the expiration of the first full three-year enrollment cycle following their initial enrollment.
Renewal Process
Enrolled agents must:
- Renew their PTIN annually between October 16 and December 31
- File Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service, within their applicable renewal period
Renewal periods are based on the last digit of an enrolled agent’s Social Security number or tax identification number. EAs who fail to file timely renewal applications or satisfy renewal requirements are placed on a roster of inactive enrolled individuals.
What Enrolled Agents Do
EAs perform comprehensive tax services including:
- Tax return preparation for individuals, partnerships, corporations, estates, and trusts
- Tax planning and advisory services
- Representation before the IRS in audits, collections, and appeals
- Resolution of tax controversies and disputes
- Filing claims for refunds and amended returns
The IRS Restructuring and Reform Act of 1998 grants federally authorized practitioners, including EAs, limited client privilege. This confidentiality protection applies to situations involving audits and collection matters, though not to tax return preparation and filing.
Enrolled Agent vs. CPA
While both credentials permit tax representation before the IRS, several distinctions exist:
Licensing Authority
- EAs: Federally authorized by the IRS
- CPAs: State-licensed with requirements varying by state
Education Requirements
- EAs: No formal degree requirement; must pass SEE or have qualifying IRS experience
- CPAs: Typically require 150 undergraduate credits and pass a four-part exam
Scope of Practice
- EAs: Specialize exclusively in taxation with nationwide practice rights
- CPAs: Broader scope including auditing, attestation, and financial reporting; limited to states where licensed
Continuing Education
- EAs: 72 hours every three years (minimum 16 annually, 2 in ethics)
- CPAs: Varies by state, typically 40 hours annually
Salary and Career Outlook
Enrolled agent compensation varies significantly based on experience, location, and employment type. Multiple salary sources report different ranges:
National Averages:
- Salary.com: $42,568 average annual salary
- ZipRecruiter: $72,507 average annual salary
- Glassdoor: $126,261 average annual salary
By Experience Level:
- Entry-level (0-5 years): $30,000-$52,000
- Mid-level (5-10 years): $50,000-$70,000
- Senior-level (10+ years): $55,000-$100,000+
Geographic Variations: High-paying states include California ($46,953), Massachusetts ($46,327), District of Columbia ($47,131), and Washington. Metropolitan areas and high-cost regions typically offer higher compensation than rural areas.
Employment Settings: EAs work in diverse environments: public accounting firms, private corporations, small tax practices, or independent practice. Federal authorization allows EAs to serve clients nationwide, regardless of their physical location.
Historical Background
Congress created the enrolled agent position following the Civil War through the Horse Act of 1884, signed by President Chester A. Arthur on July 7, 1884. The role initially focused on helping citizens settle property claims with the government after wartime confiscation.
The Revenue Act of 1913, signed by President Woodrow Wilson, expanded the EA scope to include claims for monetary tax relief. Treasury Department Circular 230, established February 19, 1921, consolidated statutes governing agent recognition and representation before the Treasury Department.
As tax complexity increased through income, estate, gift, and other revenue sources, the EA role evolved to encompass comprehensive tax preparation and taxpayer representation across all IRS administrative levels.
Current EA Population
Approximately 87,000 enrolled agents practice in the United States according to the National Association of Enrolled Agents. The IRS updates its active enrolled agent listing twice yearly, typically in March and September. The complete listing is accessible on the IRS website.
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