An Enrolled Agent Exam is a series of tests that the government offers to individuals who want to become Enrolled Agents.  This title (Enrolled Agent) was established in 1884 when the government decided to regulate who could represent citizens when dealing with the Treasury Department.  Basically Enrolled Agents are people that have earned the right to represent tax payers by specializing in tax law.

Attorneys and CPA’s may also represent taxpayers however the Enrolled Agent specializes in tax laws only.  They can not only prepare tax returns for individuals, but also represent taxpayers in an audit and all other matters dealing with the Treasury Department.  Attorneys and CPAs have a much wider range of areas in which to specialize. Attorney and CPA licenses are issued by individual states whereas the Enrolled Agent license is issued by the US Government.

In order to be given the title, one must pass a complicated and very difficult Enrolled Agent Exam process.  This is a 2-day exam process and then the candidates must undergo a rigorous background check by the IRS.  The exams cover everything from taxation of individuals, corporations, partnerships, estates and trusts, procedures as well as ethics.  The Enrolled Agent Exam is said to be extremely difficult and should not be entered into lightly.

The exam is a 3 part process including the Special Enrollment Examination.  Each part of the 3 part exam costs $97.00.  Prior to taking the exams you must sign up using the IRS Form 2587 which can be found on the Thomson Prometric/IRS website. Thomson Prometric administers the exam on behalf of the IRS.  Once you sign up you then choose a test site. There are test sites throughout the US allowing you to choose one closest to you.

It is suggested that you review the Special Enrollment Exam Study Kit located on the IRS website.  You can also download previous tests and their answers in an effort to study for the exams.  There are study classes that you can use to assist you in your preparation for the exams.  TaxMama Eva Rosenberg has a web-based study class and a fine review cram session that has been said to be very effective in assisting those trying to pass the Enrolled Agent Exam and can be found on the IRSexam.com website.

The other way to become an Enrolled Agent is to be employed by the IRS for a minimum of 5 years and hold a position wherein you regularly apply and interpret the Internal Revenue Code and regulations.

Whether you obtain the title via the exam or via employment with the IRS you are required yearly continued education.  Enrolled Agents are required to complete 72 hours which is reported every 3 years.

Enrolled Agents are also required to abide by the provisions of the U.S. Treasury Department. Failure to do so can result in suspension.

Due to the stringent testing and grueling application process as well as the continued education requirements there are less than 35,000 active Enrolled Agents in the US today.