CPE Requirements for Enrolled Agents
An enrolled agent is a tax preparation specialist. Since tax laws change each year, an enrolled agent must take additional coursework to verify up to date knowledge of the tax code. The National Association of Enrolled Agents and the Internal Revenue Service both require continuing professional education (CPE), although the specific requirements of these organizations differ. According to the NAEA, the IRS requires 72 hours of CPE in a period of three years, and the NAEA requires 30 hours a year.
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Federal versus State and Local Taxation
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The CPE requirement for an enrolled agent requires coursework in federal taxation. The enrolled agent credential is meant to show that a tax preparer can prepare federal taxes. Enrolled agents can receive some credit for learning about state and local taxation. According to the NAEA, an enrolled agent can receive up to 6 hours of CPE credit, toward the total of 30 hours, to meet NAEA requirements by attending classes sponsored by NAEA affiliates that cover state and local taxation.
Improving Professional Skills
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IRS regulations require an enrolled agent to learn additional information about the federal tax system. For CPE to qualify toward IRS requirements, the information in the course may not be basic or general information intended for the public. According to the IRS, a course that covers subjects that an enrolled agent should already know, or a course that provides general knowledge, such as how to manage an office or use computer software, does not meet the standards for acceptable CPE.
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Specificity
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Enrolled agents have a very specific task. Even other coursework in bookkeeping or accounting may not meet the CPE standards for the IRS. According to the IRS, acceptable accounting classes include classes that emphasize federal taxation, as well as classes that teach tax preparation ethics. Courses that teach the use of computer software are acceptable if the course focuses on using software to calculate federal taxes. The IRS states that the requirements for qualifying education are included in the document known as Circular 230, which establishes guidelines for qualifying coursework but does not list or approve individual courses.
Qualifying Sponsor
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An enrolled agent must take CPE courses from a qualifying sponsor to receive credit. According to the IRS, a qualifying sponsor includes accredited schools that have continuing education recognition from a U.S. state or territory, or recognization or a sponsorship agreement with the Office of Professional Responsibility. The NAEA considers educational institutions that meet the IRS rules to also meet the CPE requirements of the NAEA.
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References
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