Top 10 Enrolled Agent Certifications

Certifications for enrolled agents are important because they demonstrate a high level of expertise in tax preparation and filing. By obtaining a certification, an enrolled agent can prove to potential employers that they have the necessary knowledge and skills to provide competent tax advice and services. Additionally, certifications can help enrolled agents stand out from their peers in the job market by demonstrating their commitment to excellence. Certifications also give current and prospective clients confidence in an enrolled agent's ability to accurately prepare and file their taxes. In short, certifications are essential for enrolled agents looking to make a name for themselves in the job market.

This article reviews some of the top certifications for Enrolled Agents and explains how they can contribute to an enrolled agent's career growth.

What are Enrolled Agent Certifications?

Enrolled agent certification is a professional designation earned by tax preparers who have been approved by the IRS to represent taxpayers in all administrative matters, including audits, collections and appeals. This certification is available to individuals who meet certain requirements, including passing an exam and completing continuing education courses.

The enrolled agent designation provides tax professionals with a number of benefits. Enrolled agents are authorized to represent taxpayers before the IRS for any type of federal tax return or issue, including individual income taxes, payroll taxes, corporate taxes, estate taxes and more. They also have access to exclusive information from the IRS that can help them better serve their clients. Additionally, enrolled agents are held to high ethical standards and must adhere to a code of ethics established by the IRS. This helps protect taxpayers from being taken advantage of by unscrupulous tax preparers. Finally, having an enrolled agent on staff can provide peace of mind for many taxpayers who may be intimidated or overwhelmed by dealing with the IRS on their own.

Pro Tip: When pursuing enrolled agent certification, it's important to stay up-to-date with the latest tax laws and regulations. Taking continuing education courses can help ensure that you are familiar with the most current information and able to provide the best advice for your clients.

Related: What does an Enrolled Agent do?

Top 10 Enrolled Agent Certifications

Here’s our list of the best certifications available to Enrolled Agents today.

1. IRS Enrolled Agent Exam

The IRS Enrolled Agent Exam is a three-part exam administered by the Internal Revenue Service (IRS) to certify individuals as tax professionals. The exam tests the knowledge, skills, and abilities of those who wish to become IRS Enrolled Agents.

The three parts of the exam are:

1. The Special Enrollment Examination (SEE): This part consists of two sections – a computer-based multiple-choice section and an essay section. The multiple-choice section covers topics such as individual taxation, business taxation, representation, ethics and procedures. The essay section requires candidates to demonstrate their ability to analyze facts and apply relevant tax law to solve problems.

2. The Registered Tax Return Preparer Test: This part consists of one section – a computer-based multiple-choice test that covers topics such as return preparation, filing requirements, recordkeeping requirements, and ethical standards for tax preparers.

3. The Annual Filing Season Program (AFSP): This part consists of one section – a computer-based multiple-choice test that covers topics such as return preparation, filing requirements, recordkeeping requirements, and ethical standards for tax preparers.

The exam takes approximately four hours to complete and can be taken at any Prometric testing center in the United States or Canada. To register for the exam you must first create an account on the IRS website and then submit an application along with your payment information online or by mail.

The cost of taking the exam is $116 per part ($348 total). Additionally, there is an annual fee of $30 which must be paid each year in order to maintain your status as an enrolled agent.

2. Tax Law and Representation Exam

Tax Law and Representation Exam (TLRE) is a comprehensive exam administered by the Internal Revenue Service (IRS) to test the knowledge of individuals who are seeking to become enrolled agents or tax attorneys. The exam covers a wide range of topics related to federal taxation, including individual and business taxes, trusts, estates, payroll taxes, and international taxation.

The TLRE consists of two parts: the Special Enrollment Examination (SEE) and the Registered Tax Return Preparer Test (RTRP). The SEE is a three-hour multiple-choice exam that tests an applicant’s knowledge of federal tax law. The RTRP is a two-hour multiple-choice exam that tests an applicant’s ability to prepare income tax returns for individuals and businesses.

The TLRE is offered twice each year in April and October. Applicants must register for the exam at least 45 days prior to the testing date. Registration can be completed online or by mail.

The cost of taking the TLRE varies depending on whether you are taking it for the first time or if you are retaking it. For first-time applicants, the fee is $116 per part ($232 total). For retakes, the fee is $81 per part ($162 total).

3. Tax Research and Analysis Exam

Tax Research and Analysis Exam is an exam administered by the Internal Revenue Service (IRS) that tests the knowledge and skills of tax professionals. It is designed to ensure that those who prepare taxes for a living are knowledgeable about the latest tax laws, regulations, and procedures. The exam consists of three parts: Tax Law, Tax Research, and Tax Analysis.

The exam takes approximately four hours to complete. To take the exam, you must register with Prometric Testing Centers or other approved testing centers. You will need to provide your Social Security Number (SSN) and proof of identity such as a driver's license or passport in order to register for the exam.

The cost for taking the exam varies depending on where you take it. Generally, it costs between $150-$200 USD per session.

4. Business Entities Exam

Business Entities Exam is a comprehensive exam that tests your knowledge of business entities. It covers topics such as the formation, operation, and dissolution of corporations, partnerships, and limited liability companies. The exam also covers topics related to taxation, contracts, and other legal aspects of business operations.

The Business Entities Exam typically takes about four hours to complete. You must answer a total of 100 multiple-choice questions in this time frame. To get the exam, you will need to register with an approved testing center or online provider. The cost of the exam varies depending on the provider but typically ranges from $100-$200 USD.

In order to pass the Business Entities Exam, you must score at least 70% on the multiple-choice questions. If you do not pass the exam on your first attempt, you may retake it after waiting 30 days from your initial attempt.

5. Fiduciary Income Tax Return Preparation Exam

The Fiduciary Income Tax Return Preparation Exam (FITRPE) is an exam administered by the Internal Revenue Service (IRS) to test the knowledge and skills of tax professionals who prepare fiduciary income tax returns. The exam assesses a candidate’s understanding of fiduciary income tax return preparation, including topics such as estate and trust taxation, gift taxation, filing requirements, and more.

The FITRPE is a two-hour open-book exam that consists of 50 multiple-choice questions. Candidates must answer at least 70% of the questions correctly in order to pass the exam. To take the exam, candidates must register with Prometric Testing Services and pay an examination fee of $100.

The FITRPE can be taken at any Prometric testing center throughout the United States. It usually takes about two weeks after registration for a candidate to receive their examination results. If a candidate passes the exam, they will receive a Certificate of Completion from the IRS.

Overall, taking the Fiduciary Income Tax Return Preparation Exam requires registering with Prometric Testing Services and paying an examination fee of $100. The exam takes approximately two hours to complete and candidates must answer at least 70% of the questions correctly in order to pass. Results are typically available within two weeks after registration.

6. Individual Income Tax Return Preparation Exam

The Individual Income Tax Return Preparation Exam is a comprehensive test that covers the fundamentals of preparing individual income tax returns. It is administered by the IRS and is designed to ensure that individuals who are paid to prepare federal tax returns have the knowledge and skills necessary to do so accurately.

The exam consists of 100 multiple-choice questions and takes approximately three hours to complete. To be eligible to take the exam, individuals must have a valid Social Security number, be at least 18 years old, and have either completed an IRS-approved education program or have two years of recent experience in preparing individual income tax returns.

To get the exam, individuals must register with Prometric, an independent testing organization that administers exams on behalf of the IRS. The cost for taking the exam is $116.50 (as of 2021).

7. IRS Circular 230 Regulations Exam

IRS Circular 230 Regulations Exam is a comprehensive exam that tests the knowledge of tax professionals on the rules and regulations governing practice before the Internal Revenue Service (IRS). The exam is administered by Prometric, a third-party testing company. It consists of 100 multiple-choice questions and must be completed within three hours.

The exam covers topics such as IRS practice and procedures, professional responsibility, federal tax law, ethics and other related subjects. To pass the exam, applicants must score at least 70% or higher.

To take the IRS Circular 230 Regulations Exam, applicants must first register with Prometric by submitting an application and paying a registration fee. The fee varies depending on the type of test being taken but typically ranges from $50 to $150. Once registered, applicants can schedule their exam date and time at any Prometric testing center in the United States or abroad.

It usually takes between one to two weeks for an applicant to receive their exam results after taking the test. Results are sent via email or mail depending on how they were requested during registration. If an applicant passes the exam, they will receive a certificate of completion which is valid for two years from the date of issue.

The cost of taking the IRS Circular 230 Regulations Exam depends on where it is taken and what type of test is being taken (e.g., paper/pencil or computer-based). Generally speaking, it costs between $50-$150 to take this exam.

8. Professional Ethics in Practice Management Exam

Professional Ethics in Practice Management Exam is a certification exam offered by the American Academy of Professional Coders (AAPC). It is designed to assess the knowledge and skills required to properly manage a medical practice. The exam focuses on topics such as patient care, billing, coding, compliance, and practice management.

The exam takes approximately three hours to complete and consists of 150 multiple-choice questions. To take the exam, applicants must have at least two years of experience in medical practice management or a related field. Applicants must also pay an application fee and provide proof of their experience.

The cost for the Professional Ethics in Practice Management Exam varies depending on where you take it. The AAPC charges a fee of $225 for members and $325 for non-members to take the exam at one of its approved testing centers. Other testing centers may charge different fees.

To prepare for the Professional Ethics in Practice Management Exam, applicants should review relevant course materials, such as those provided by AAPC or other accredited organizations. Additionally, applicants should become familiar with relevant laws and regulations pertaining to medical practice management.

9. Advanced Tax Law and Representation Exam

The Advanced Tax Law and Representation Exam is a comprehensive exam administered by the Internal Revenue Service (IRS) to tax professionals who wish to become enrolled agents. Enrolled agents are authorized to represent taxpayers before the IRS in all matters, including audits, collections, and appeals.

The exam consists of three parts: Part 1 covers individual taxation; Part 2 covers business entities; and Part 3 covers representation, practice, and procedures. Each part is three hours long and contains 100 multiple-choice questions. The exam is offered at Prometric Testing Centers throughout the United States.

To take the Advanced Tax Law and Representation Exam, you must first submit an application package to the IRS along with a fee of $105. Once your application has been approved, you will be sent an Authorization to Test (ATT) letter that will provide instructions on how to register for the exam at a Prometric Testing Center. You must register within 90 days of receiving your ATT letter or your registration will expire.

The cost of taking the Advanced Tax Law and Representation Exam is $116 per part, for a total cost of $348 plus any applicable taxes or fees charged by Prometric Testing Centers.

10. International Tax Law and Representation Exam

International Tax Law and Representation Exam (ITLRE) is a comprehensive exam designed to assess the knowledge and skills of tax professionals who specialize in international taxation. The exam is administered by the American Bar Association (ABA).

The ITLRE consists of 100 multiple-choice questions covering topics such as international tax treaties, foreign tax credits, transfer pricing, and other related areas. The exam takes approximately 3 hours to complete.

To take the ITLRE, an applicant must have a bachelor’s degree in accounting or a related field and have at least two years of experience in international taxation. Applicants must also pass an ethics examination administered by the ABA prior to taking the ITLRE.

The cost of taking the ITLRE varies depending on where it is taken. Generally, the cost ranges from $250 to $500.

Do You Really Need a Enrolled Agent Certificate?

The short answer is yes. An Enrolled Agent Certificate is the highest level of accreditation available in the field of taxation and allows you to represent taxpayers before the Internal Revenue Service (IRS). This certificate is issued by the IRS, and it’s a mark of distinction that shows you have met rigorous qualifications that demonstrate your knowledge, skill, and proficiency in tax preparation.

Having an Enrolled Agent Certificate can be very beneficial for those who are looking to pursue a career in tax preparation or work as a consultant for clients with complex taxes. It not only demonstrates you have the necessary expertise to accurately prepare and file taxes, but also shows potential employers that you are capable of dealing with difficult situations related to taxes. Also, having an enrolled agent credential can open doors to higher-level positions within tax firms or companies.

In addition to the professional benefits associated with obtaining an Enrolled Agent Certificate, there are also financial benefits. Certified agents can often charge more than non-certified agents due to their increased level of expertise and knowledge. This means that agents with this certification can potentially earn more money overall than non-certified agents.

Overall, if you’re looking for a career in tax preparation or consulting, then obtaining an Enrolled Agent Certificate should be considered essential. It will provide you with numerous professional advantages as well as financial rewards that would otherwise be unavailable without it.

Related: Enrolled Agent Resume Examples

FAQs About Enrolled Agent Certifications

1. What is an Enrolled Agent Certification?

Answer: An Enrolled Agent (EA) certification is a professional designation given by the Internal Revenue Service (IRS). It is the highest level of tax preparer credential available and allows individuals to represent taxpayers before the IRS in all matters including audits, collections, and appeals.

2. How do I become an Enrolled Agent?

Answer: To become an Enrolled Agent, you must pass a three-part exam administered by the IRS known as the Special Enrollment Examination (SEE). You must also have either worked for the IRS for at least five years or have passed a background check.

3. How long does it take to become an Enrolled Agent?

Answer: The process to become an Enrolled Agent typically takes 6-12 months, depending on how quickly you complete the necessary exams and paperwork.

4. What are the benefits of becoming an Enrolled Agent?

Answer: As an EA, you will be able to provide tax advice and representation to clients with confidence knowing that you have met all of the qualifications set forth by the IRS. Additionally, you will be able to command higher fees for your services due to your specialized knowledge and expertise.

5. Is there continuing education required for EAs?

Answer: Yes, EAs are required to complete 72 hours of continuing education every three years in order to maintain their certification status with the IRS. This includes courses on topics such as federal tax law updates and ethics in taxation.