How to Become an Enrolled Agent
Becoming an enrolled agent is a complicated and difficult process. The cream of the crop when it comes to representing clients in their dealings with the IRS, an Enrolled Agent is the best line of defense for those persons facing an IRS Audit.
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Things You'll Need
- U.S. Tax Code
- Clean background and tax records
- Treasury Department Circular 230
Instructions
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Obtain the most recent copy of Treasury Department Circular No. 230, entitled "Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service." This document outlines the requirements for becoming an Enrolled Agent.
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Study the tax code exhaustively. Since you'll be required to take a comprehensive, in-depth exam in order to become an Enrolled Agent, you'll need all the knowledge you can get. Gather as many of your past tax returns as you can. You'll be going through a background check and the IRS will be going through your financials.
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Contact Prometric to confirm testing dates in your area. They are the company that administers many professional exams such as the Enrolled Agent, Licensed Insurance Agent, and other state and Federal exams as well. There are typically a few different testing sites in each state, so there is bound to be one near you.
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Pass your Prometric Exam. They generally submit your score, assuming it is a passing score, to the agency you're testing for. Of course, it can't hurt to submit those results yourself, as well. They are happy to provide you a hardcopy of your score after your test is completed.
How to Become an Enrolled Agent Without Taking The Exam
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Obtain Treasury Circular 230, and confirm that your experience with the IRS meets the requirements laid out therein.
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Apply for enrollment with the Treasury Department as an Enrolled Agent by completing the required forms, which are downloadable from the IRS website.
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Pass a background check, which is administered by the IRS itself. During this phase, you can expect that your family will be contacted and your references and qualifications checked. It can be invasive, but the thoroughness of the background check is what people look for when they search out an Enrolled Agent.
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Tips & Warnings
If you don't pass the exam the first time, don't be discouraged. It's not the end of the world. It is an extremely tough exam, and the IRS is very forgiving if you aren't a first-time-passer.
Keep your nose clean. Make sure that there is nothing in your background that could be considered bad. Writing a bad check, errors on tax returns and filing bankruptcy will all get you red-flagged, and you should be prepared to explain.
