Enrolled Agent (EA): Overview, History, FAQ

Key takeaways

• An Enrolled Agent (EA) is a federally authorized tax practitioner with unlimited rights to represent taxpayers before the IRS (audits, collections, appeals).
• Prospective EAs must pass the Special Enrollment Examination (SEE) or qualify by prior IRS experience; all must pass a suitability/background check and obtain a PTIN.
• EAs specialize in taxation, offering tax preparation, planning, and representation for individuals, businesses, trusts, estates, partnerships, and corporations.
• EAs hold a federal license (no state license required) and must follow Treasury Department Circular 230 and applicable codes of ethics.

What is an Enrolled Agent?

An Enrolled Agent (EA) is a tax professional licensed by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS) on any tax matter. EAs have unlimited practice rights before the IRS and can advise, prepare tax returns, and represent clients in audits, collections, and appeals.

History in brief

• 1884: The profession originated after fraudulent Civil War loss claims prompted Congress to regulate representatives; the Horse Act established and standardized the role of enrolled agents.
• 1913: The 16th Amendment and the introduction of modern federal income tax expanded EA duties to include tax preparation and dispute resolution with the IRS.
• 1972: The National Association of Enrolled Agents (NAEA) was formed to represent EAs and promote professional development.

What EAs do

• Represent taxpayers before the IRS in audits, collections, and appeals.
• Prepare and file tax returns for individuals, businesses, estates, trusts, partnerships, and corporations.
• Provide tax planning and advisory services, including identifying tax-saving strategies and compliance advice.

How to become an Enrolled Agent

Typical steps:
1. Obtain a Preparer Tax Identification Number (PTIN) from the IRS.
2. Pass the Special Enrollment Examination (SEE), a three-part exam covering individual tax, business tax, and representation/practice/procedures — unless exempt (see below).
3. Apply for enrollment and pass a suitability check (background check and tax compliance review).
4. Maintain continuing education requirements to keep enrollment active.

Exemptions:
* Former IRS employees with at least five years of qualifying experience as field tax professionals may apply for enrollment without taking the SEE.
* Licensed CPAs and attorneys may also become EAs without taking the SEE.

Education and continuing professional requirements

• The IRS requires enrolled agents to complete 72 hours of continuing education every 36 months, with a minimum number of hours in certain subjects and a minimum yearly requirement.
• Professional organizations such as the NAEA often set stricter standards for members (for example, NAEA members typically complete about 30 hours per year or 90 hours every three years).
• All EAs must adhere to Treasury Department Circular 230 (rules governing practice before the IRS) and applicable codes of ethics.

How EAs differ from CPAs and attorneys

• Focus: EAs specialize in taxation and IRS representation; CPAs and attorneys may have broader practices beyond tax.
• Authorization: All three can represent clients before the IRS, but the EA credential is specifically tax-centered and is a federal license that allows practice in any state without a separate state license.
• Qualification paths differ: CPAs and attorneys follow state licensing requirements; EAs are licensed federally through the IRS process (SEE or qualifying IRS experience).

Benefits of using an Enrolled Agent

• Deep, up-to-date tax expertise and specialization in IRS matters.
• Unlimited rights to represent taxpayers before the IRS.
• Ability to work across state lines without additional state licensing.
• Typically strong focus on tax planning, preparation, and dispute resolution.

Profession outlook

Demand for tax professionals depends on regulatory changes, government budgets, and the overall need for tax services. While some government tax jobs (e.g., tax examiners) are projected to decline modestly in certain periods, there remains ongoing demand for EAs in public accounting firms, law firms, corporations, government agencies, and financial institutions for specialized tax work and representation.

Frequently asked questions

Q: Can an EA represent me in any state?
A: Yes. EAs hold a federal license and may represent taxpayers before the IRS regardless of the taxpayer’s state of residence.

Q: Do EAs work only for the IRS?
A: No. EAs are authorized by the federal government but are not IRS employees. They work in private practice, firms, corporations, and government roles.

Q: How often must an EA complete continuing education?
A: The IRS requires 72 hours every 36 months; professional groups may require more frequent or additional hours.

Q: Is an EA the same as a CPA?
A: No. Both can represent clients before the IRS, but EAs specialize in taxation and IRS representation, while CPAs have broader accounting and financial qualifications.

Conclusion

Enrolled Agents are federally licensed tax experts focused on tax preparation, planning, and representation before the IRS. Their specialized training and unlimited practice rights make them a strong choice when you need assistance with audits, collections, appeals, or complex tax matters.