Perhaps you’ve been working for 10-15 years preparing taxes and you’ve finally had it with your current station in life. Or, maybe you’re just trying to avoid reaching that point, and as a young professional in the accounting industry, you want to be catapulted up the corporate ladder.

There are many reasons why people take the EA exam, but there are just a few ways to study for the test in a way that will help you pass. Let us show you how to pass the EA exam with a limited investment of time and money.

Studying During Work Hours

Once you decide to embark on that journey to get your Enrolled Agent certification, which will help you advance through your organization, you need to create a study program. We would suggest using an EA exam review course, but that’s only half of the battle—you need to find some time to study. And, if you’re working full-time, that can often be much easier said than done.

If you’ve got a family, commitments outside of work, or simply are working more than 50-60 hours a week, it’s time to get creative. You need to keep your normal life, but you’re going to have to make some major adjustments.

The key to studying while keeping a full-time job is to prioritize your free time. Use an audio course to study on your commute. Bring flashcards with you to the gym for use on the treadmill. Bring your worksheets with you to your child’s play (you’re not missing much!). Do whatever you have to do to get those hours in. Remember, everyone who loves and cares about you will excuse you for a couple of months if you’re beyond busy, but they won’t like it if you’re always complaining about being stuck in a mid-level job.

Sign out of your social media accounts for a couple of months, tell your children and spouse that you need their support and understanding, and be prepared to rein in your social and familial life for a brief period of time. Making these adjustments can be extremely difficult, especially with all the initial doubt and speculation towards these changes. Combat these feelings with a strong game plan, which begins with choosing one of the best EA review courses on the market.  

Humility Matters

One of the biggest mistakes that we see with regard to EA exam failure is a lack of humility. You need to be humble about this exam—it’s way better to over-study than to under-study. However, any amount of hubris about studying isn’t what may drag you down. It could be that you simply don’t study the right way.

So, it’s a matter of finding out what type of learner you are. There’s the basic breakdown of auditory, visual, or kinesthetic (by doing), but there’s also a second component. You should be studying at least six days a week, but some people may prefer to do only an hour or so during the week and then load up on one weekend day. Others may favor the two to three hour per night approach, with more free time on the weekend.

Regardless of what your studying style and approach are, you need to take SOME time off. Plan on giving yourself one study-free day a week, but once again, don’t get too confident! Don’t think that because you’re familiar with taxes and IRS codes that you’re going to ace the test. Make sure you know what you are up against before taking this exam. One of the biggest mistakes that we see is the more seasoned accounting industry professionals failing an exam the first time around because they felt like their work experience would be enough preparation.

Smart Repetition Is the Solution

When you’re studying, regardless of the length of your session, try to avoid the wrong repetition. If you do know something, and you’ve done the aforementioned hubris check, MOVE ON. We cannot emphasize this enough: don’t over study the same material! There’s a difference between learning and memorization. For a test this big, you’re not going to be able to remember everything, but you definitely won’t be able to learn all of it either!

Try to learn as much as you can and then memorize certain tricks and learning devices to help fill in the gaps. This isn’t a brain teaser type of a test. If you take some time and actually learn the material, you should be fine. And, for the sections with which you’ve simply struggled to master, try to create a mnemonic or study tool that will help you come test day. For due dates, form numbers, numbers of years for things like NOL carryforwards or statute of limitations, you’re just going to have to sit down, read it over, and memorize the given numbers.

Take a little extra time, think about what you’re going to need to memorize and what you’re going to have to learn. If you can break up these two groups, it will help you organize your study plans. Use an EA exam review course to your advantage and work out a plan of attack.

You’ve got this, you just need to put in the effort. There’s no such thing as passing this test via shortcuts, it’s all about elbow grease and hubris!

GO TO THE BEST EA REVIEW COURSES!

An Enrolled Agent is a tax specialist who has been federally authorized to represent taxpayers before all levels of the IRS. Unlike CPAs, enrolled agents are eligible to practice in all states without additional licensing requirements.

The job of an enrolled agent is to advise, represent and prepare tax returns for individuals, corporations and trusts. Adding this useful certification to your resume could be a great career move.

If you are ready to take your accounting career to the next level, but aren’t sure how to become an enrolled agent, keep reading!

How To Become An Enrolled Agent

Unlike most other professional designations, there are no educational prerequisites for becoming an enrolled agent.

Although you don’t need a college degree or diploma, you must prove your competency for tax-related matters. There are two ways to do this:

1. Pass the Special Enrollment Exam/EA Exam

The EA exam, also known as the Special Enrollment Examination (SEE), is a comprehensive, 3-part exam that demonstrates special competence in a wide variety of tax-related issues. You can take this exam in hundreds of national and international locations at a Prometric testing center.

The different parts of the exam can be taken in any order. The only requirement is that you must pass all three sections in order to earn your EA certification.

2. IRS Experience

Another way to become an enrolled agent is by having IRS experience. Past service or technical service with the IRS is considered acceptable.

If you choose to go this route, you must meet the following 3 requirements:

• Must have past experience and technical service, as specified in Circular 230

• Must apply for enrollment with Form 23

• Must undergo a background check to verify your years of experience. Your tax transcript will also be reviewed. Any failure to file or pay your taxes in a timely matter is grounds for enrollment denial

To be considered for EA enrollment, you must have a minimum of 5 years experience.

Maintaining Your EA Certification

Part of becoming an enrolled agent means maintaining your EA certification in the future.

Enrolled agents are required to renew their license every 3 years. This ensures that EAs are up-to-date on any changes and additions to the tax code.

The IRS will notify you when your renewal cycle is approaching. You can renew online or you can complete the paper Form 8554 and mail it in.

You must also complete 72 hours of continuing education. You have 3 years (the length of the enrollment cycle) to complete these hours, however, 2 hours of Ethics must be completed annually.

Why Become An Enrolled Agent?

You should consider becoming an enrolled agent for several reasons.

• There is a growing need for representation. In recent years, an increase in IRS enforcement has resulted in the need for more taxpayer assistance.

• You will have unlimited earning potential. You don’t need to be hired by a firm to serve in this capacity; you can start your own business and take on as many clients as you can handle.

• This is a recession-proof career. People will always have to pay taxes and will always need help.

If you decide to become an enrolled agent, you will be making a smart career choice that will open new doors and create potentially unlimited opportunities for yourself.

To help you pass the EA exam, you can take advantage of several EA review courses to prepare for the exam. Regardless of your learning style, there is an Enrolled Agent review course to suit your needs.

If you enjoy crunching numbers or preparing your own income taxes, then you should consider a career as an enrolled agent (EA).

When it comes to jobs in accounting and finance, many people consider becoming CPAs, while few think about the option of becoming enrolled agents. With an increasing need for EAs across the nation, choosing to follow this career path can be both satisfying and lucrative.

Enrolled Agent vs CPA

First, it is important to understand the difference between an enrolled agent and a CPA.

Enrolled agents are specialized tax practitioners who are certified to represent taxpayers in dealings with the IRS. EAs prepare taxes, can stand in for you during an audit, and handle other business you may have with the IRS.

To become an EA, you must pass the SEE exam. Unlike CPAs, enrolled agents become nationally certified, so they can practice in any state with the same certification.

CPAs, on the other hand, are public accountants who file reports with the Securities and Exchange Commission (SEC). There is no national certification for CPAs, so they must be certified in each state in which they intend to work.

Given the difference in their job descriptions, it’s not surprising that their salaries differ as well.

Enrolled Agent Salaries

There are 3 general levels of salary for EAs: entry-level, mid-level, and senior. The average salary is typically determined by experience and location. For example, EAs based in the state of California earn up to 8% more on average than those who work in other states.

According to Payscale.com, entry-level EAs generally begin with a salary of about $23,000 per year, but their pay can vary between $8-$24 per hour.

Entry-level agents are primarily tax practitioners. During tax season, these agents review and prepare tax returns for both individuals and businesses.

As their experience increases, these agents have the opportunity to move up the pay scale.

Mid-level enrolled agents typically earn between $37,000 and $50,000. These agents tend to have 1-2 years of work experience. Hourly pay could be anywhere from $12-$55, depending on how many years of experience they have under their belt.

Common tasks for mid-level EAs include the preparation and review of tax returns, following up with tax invoices, preparing bank reconciliations, providing information to external auditors, and much more. The responsibilities for a mid-level position exceed that of an entry-level agent, which explains the difference in pay.

Senior level internal revenue agents can earn a healthy income in the accounting world. These higher-paying positions can be between $66,000 and $127,000 annually.

To qualify for high-level positions, EAs must typically have a minimum of 5 years experience in tax consulting, planning and training. Other tasks include preparing tax returns, performing tax accounting reconciliations, teaming up with the different departments regarding any tax issues, etc.

There is considerably more responsibility required for EAs in senior positions, which translates into the potential to earn a greater income.

Salary Comparison

The average Enrolled Agent salary is approximately $45,000 annually, as compared to CPAs,  who earn an average of approximately $60,000 a year. According to payscale.com, EAs make between $29,236 – $74,047 a year, with a median income of $46,134, while CPAs make between $41,676 – $98,448 a year, with a median income of $59,824.

Although pursuing your CPA may look more profitable at first glance, thanks to the increasing demand for enrolled agents, the EA’s earning potential increases faster than the CPA’s. In as little as 4 years, EAs can earn the same amount as the average CPA if they are successful and take on many clients.

The flexibility of being an EA may make the slightly lower pay worth it for those who like to set their own hours and work independently for individuals or businesses all over the United States. CPAs typically work in a more traditional office environment with a predictable salary that increases over time as they gather experience.

How To Become An EA

Becoming an enrolled agent takes much less time than becoming a CPA. Unlike the CPA exam, which requires you to have completed certain educational prerequisites, there are no educational requirements to sit for the Special Enrollment Exam (SEE).

To become an enrolled agent, the IRS requires a few straightforward steps.

1. You must obtain a Preparer Tax Identification Number (PTIN)
2. You must register for and pass the Special Enrollment Examination (SEE)*
3. You can then apply for enrollment and pay a fee online or by mail
4. You must also pass a tax compliance check that investigates whether you have filed all your tax returns and have no outstanding tax liabilities.

*Some IRS employees do not have to take the SEE exam if their work experience meets the IRS requirements (please see Treasury Department Circular No. 230 for details on this exemption).

Earning the EA license demonstrates your advanced knowledge of tax procedures and regulations. If you are looking for a flexible and well-paid career in the tax industry and do not want to become a CPA, this rewarding job is worth investigating. If you decide to pursue this career path, check out these study aids for passing the EA exam today!

What is the the salary for an Enrolled Agent?

Part 1 of the enrolled agent exam, also known as the IRS Special Enrollment Exam (SEE), covers tax topics related to individuals. The exam contains 100 questions, including 85 questions that are scored and 15 questions that are experimental and therefore not scored. The exam consists of 5 separate sections and candidates have 3.5 hours to complete it.

The EA exam is a multiple choice exam with four possible answers for each question. All questions are weighted equally. The five sections covered on the first exam (Part 1) are as follows:

• Section 1: Preliminary Work and Taxpayer Data
• Section 2: Income and Assets
• Section 3: Deductions and Credits
• Section 4: Taxation and Advice
• Section 5: Specialized Returns for Individuals – Estate Tax and Gift Tax

The EA exam is offered every month of the year except March and April (the busiest tax season). Each part of the exam costs $109 and must be scheduled in advance through Prometric, which has more than 8,000 test center locations in the US and throughout the world. Click here to see a list of Prometric locations and tests offered (not all tests are offered at all test centers).

Candidates will need a Preparer tax identification number (PTIN) in order to schedule an exam. To apply for a PTIN, you can go to the IRS website and click on the “Renew or Sign-up now” button on the left.

A new exam is introduced each May, based on tax law from the previous year. It is graded on a scale that ranges from 40 to 130. To pass the exam, you must receive a score of 105 or higher.

If you fail the exam (a score of 104 or below) you will be notified that you did not pass as soon as you finish the test. You will only find out your exact score if you fail the exam; individual scores are not released for students who pass the exam. Each part of the exam may be taken up to 4 times in any testing year.

The following video by one of the leading EA Exam Review companies reviewed on this site offers an example of an effective strategy to help you pass the exam:

For a comparison of various Enrolled Agent prep course options, please check out our EA course comparison chart.