I wanted to become an Enrolled Agent for years before I actually buckled down and took the tests. What stopped me was the fear of not remembering how to study for tests, not passing the tests, and thinking I wasn't smart enough. It took a lot of mental talks for me to take the first step.
The tests are taken at testing centers. Each test consists of 100 questions and is given in 50-question sections. Surprisingly, I passed each test the first time I took them. After "Passed" came onto the computer screen after taking one of the hardest tests, I just about jumped up and down and yelled. Luckily, I remembered I was in a testing center and had to be quiet.
It took me about 9 months to study and take each test. Covid restrictions messed up my testing dates. I have been an Enrolled Agent since March 2021.
But what is an Enrolled Agent? The name itself sounds confusing. It honestly sounds more like a government spy than a tax professional. But an Enrolled Agent, usually called an EA, is actually one of the most powerful professionals you can have in your corner when dealing with IRS problems. And most people have absolutely no idea what one is.
An Enrolled Agent is a tax professional licensed directly by the federal government to represent taxpayers before the IRS.
That means an EA can help with:
- IRS audits
- Back tax debt
- Wage garnishments
- Bank levies
- Tax liens
- Payment plans
- IRS notices
- Unfiled tax returns
- Offer in Compromise cases
- Appeals and collections issues
Basically, if the IRS is involved, an EA is authorized to step in and represent you.
One important detail people do not realize is that Enrolled Agents are federally licensed. That means they can represent taxpayers in every state, not just the state where they live.
The name really does sound strange.
The credential dates back to the late 1800s after the Civil War. Congress created a group of professionals who were officially “enrolled” with the Treasury Department to act as “agents” for citizens dealing with claims against the government. Over time, the role evolved into tax representation.
Today, Enrolled Agents are professionals recognized by the IRS to represent taxpayers in front of the agency. The name stayed even though the work changed dramatically over the years.
This is not one of those “take a quick online class and print a certificate” situations.
To become an Enrolled Agent, a person must either:
- Pass a very difficult three-part IRS exam covering individual taxes, business taxes, and IRS representation procedures, OR
- Have significant qualifying experience working for the IRS itself
After earning the credential, EAs also have continuing education requirements to stay current on tax law changes. And considering how often tax laws change, that education never really stops.
What's the difference between an EA, CPA, and Tax Attorney?
This is one of the biggest areas of confusion for taxpayers. Here is the simple version:
CPA (Certified Public Accountant)
CPAs are licensed by individual states and often focus on accounting, bookkeeping, financial statements, and tax preparation. Some CPAs also do excellent tax resolution work.
Tax Attorney
Tax attorneys are lawyers who specialize in tax law. They are usually the best fit for situations involving litigation or tax court matters.
Enrolled Agent
Enrolled Agents are federally licensed tax specialists focused specifically on taxation and IRS representation. Helping taxpayers deal directly with the IRS is literally what the credential was designed for.
None of these credentials is automatically “better” than another. They simply serve different purposes depending on the taxpayer’s situation.
Not all EA's do resolution. Some become an EA to be a better tax preparer. Some do it so that they can visit with the IRS about their clients' situations.
Becoming an Enrolled Agent has benefited me in so many ways. I regret that I didn't take the tests years earlier!
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