Enrolled Agents

An Enrolled Agent (EA) is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service (IRS) by either passing a three-part comprehensive IRS test covering individual and business tax returns or through experience as a former IRS employee.

An EA is a federally-authorized tax specialist that operates to provide advisory services to American taxpayers about matters concerning the IRS. Achieving “EA” status is considered the highest credential awarded by the IRS and is legally recognized throughout all U.S states. To get the EA license, one must pass the three-part Special Enrolment Examination (SEE) conducted by the IRS through Prometric centres.

If you are a non-EA tax return preparer but want to obtain the prestigious EA tag for acquiring more skills and facilities to represent before the IRS, then start your EA journey just after the tax season is over. Why? For the following reasons.

• Current Knowledge of Tax Laws

As the tax season has just been over, you already have the grasp of all the titbits of the existing tax status up to date- so high time to go for the EA course because you are already ahead.

• Faster and Efficient Study

As you are already loaded with tax knowledge, your study time will be effectively less with increased efficiency to face the EA exam.

• Time Management

Since you have just surpassed the hectic tax season, by this time, you are well versed about how to use your time for study by making an appropriate schedule. This helps a lot to clear the EA exam.

• The Momentum

Since this is the continuation of your scheduled tax preparation, it is much easier for you to get the right momentum to study for the EA exam.

• Early Start

While the EA exam does not start testing until May, you can still start your studies as early as March 1 if you have got the time to spare because you have the basic knowledge with you.

• Unlimited Representation

Once you achieve your EA license within a year between two tax seasons, you will get the unlimited right to represent an unlimited number of cases before the IRS. That right was not with you in the previous tax season because you were not an EA then.

• Recent Tax Laws

If you start your EA course just after the tax season is over, you have the advantage that you are already acquainted with the most recent tax laws or any amendments thereafter. This will be highly advantageous to crack the EA exam.

1. Adaptive Learning

Since you have already covered long working hours during the tax season, you are quite adapted to take the timely load. Here, you will be better than an average EA student who can not study for long hours at a stretch. This adaptive learning will help you to pass the EA exam easily in a shorter time.

• Keeping the Motivation

Candidates for the EA exam have two years to pass all three parts of the exam, so a long break also means you risk losing points for sections you may have already passed. That is why starting preparation for the EA course just after the tax season is over is always beneficial.

• Be an EA early

With your knowledge and required skill in tax return preparation, you can easily choose an appropriate EA review course with practice questions and some mentoring if required to get the EA credential much earlier than other EA aspirants.

With the above fact in mind, if you are really ready to earn your coveted EA credential, we are happy to help.

For further information/assistance, contact: www.upliftprofessionals.in/Enrolled_Agents

The Enrolled Agent (EA) exam commonly known as Special Enrollment Exam (SEE) and is conducted by the Internal Revenue Service (IRS) is composed of tricky MCQs which need some special approach to tackle by proper interpretation of the questions in the given form. 

The EA exam is administered by Prometric on behalf of the IRS and is used to assess the knowledge and skills of the EA aspirant in tax law. The EA exam has 3 parts (Individuals, Businesses and Representation, Procedures, and Practices) and each part includes 100 MCQs. All EA exam questions offer 4 answer choices, and candidates are required to pick the best possible answer of the 4.

Here we are going to discuss some strategies for how to interpret and handle the EA exam questions. The EA exam uses a grading system on a scale of 40-130 in which one must score a 105 or above on each part to pass the exam.

The EA Exam-Question Pattern

The MCQs of the EA exam has 3 basic parts: 

1. The question stem- It is the part of the question that asks you to do something i.e. It includes the information you need to answer the question.
2. The best answer choice- This is the type that most accurately responds to the question stem.
3. The distractors- the remaining 3 answer choices that are designed to confuse you by seeming plausible i.e. The other choices that may look right but are incorrect.

EA Exam-Types of MCQs

• Direct questions

These are the most common EA exam questions. This comes as a straightforward question having four potential answers to select. While these questions can sometimes be answered with a yes or no, in the case of the EA exam, the candidate must always select a specific answer.

• Incomplete sentences

This question demands selecting the answer that best completes the sentence or in the other way, the answer completes the sentence. Alternatively, these questions may require one to select the answer that would best fill in the blank at the end of the question stem.

• Negative or All of the following except questions

These questions include the words NOT or EXCEPT in all caps. This format makes a statement and then asks for the answer option that does not meet the criteria of the statement. Therefore, you must use deductive reasoning to determine the best answer, which, again, is the option that does not satisfy the previously provided specifications. Remember to pay close attention when you spot these words. It is easy to get confused when you are also answering direct questions. The correct answer will be the one that is not like the others.

Strategies to Answer EA Exam MCQs

• Read the question stem carefully

Do not read the answer options without critically reading the question stem carefully. This can generate confusion and prompt you to select the wrong answer. It is important to identify clearly what the question is asking to prevent any distraction from the extra information loaded in the question.

• Elimination of Options

The EA exam is MCQ based test having only one correct answer out of the 4 options given. Hence, the elimination of even one distractor raises the chance of calculated guess for the correct one will always increase. 

• Use of Knowledgeable Guess

This involves use of educated guesses to eliminate distractors and logical identification of the correct answer.

• Attempt every question

Since the score in the EA exam relies on correct answers only and there is no negative marking for wrong answers in the EA exam, it is always advisable to attempt all the question even if they are based on wild guesses. 

• Time Management

There is no need to hurry because the time allotted for the EA exam is 3.5 hours to complete each part of the exam. There will be sufficient time for careful reading of the questions and on an average it requires 1.5 minutes to answer each question. First complete answering the sure-shot questions, flag the rest, and come back to them later for guess answering.

• Reviewing the Answers

After you answer all 100 MCQs, go back and review your answers. You can change your answers before submitting the test, so this step allows you to be fully confident in your performance.

IRS Sample Question Links for EA 

• https://www.irs.gov/tax-professionals/enrolled-agents/see-sample-test-questions-part-1
• https://www.irs.gov/tax-professionals/enrolled-agents/see-sample-test-questions-part-2
• https://www.irs.gov/tax-professionals/enrolled-agents/see-sample-test-questions-part-3

For Further Information/Assistance, Contact: www.upliftprofessionals.in/Enrolled_Agents

Once you decide to pursue the Enrolled Agent (EA) course, you need to look for quality study/review material to make your EA journey smoother with the aim to crack the Special Enrolment Examination (SEE) on the first attempt. In this venture, you can find EA study materials from different international publishers having their pros and cons.

However, you must opt for the one which suits you better in terms of your apprehension and budgetary restraints. Since different EA exam study materials suit different candidates according to their individual backgrounds and learning styles, it is difficult to pinpoint any material to be better or best. Here we are going to discuss some of these prime study materials to help you find the optimum study material which should serve your purpose to clear the EA exam.

Popular EA Exam Study Materials

• Gleim

Gleim EA Review/study material contains everything you require to pass the EA exam and is the most widely used EA review course on the market. Gleim EA exam study material is considered to have the largest test bank available with top quality exam questions containing vividly detailed answer explanations. This material is a comprehensive guided self-study review course integrating MCQs, Videos, Flashcards, and support. For candidates who have some tax background and want to learn through practicing mock questions for the EA exam, Gleim EA exam study material should be their cup of tea, although it does not mean that others will not get benefitted. The cost is on the higher side.

• Surgent

Surgent is also a major publisher of EA exam study materials with much repute. They are pioneers in developing an e-learning interactive platform for EA exam candidates which learn and evaluate the potential of the candidate through the answer provided. This adaptive learning technology analyses and identifies the weakest area on the topic for each study session. This helps the candidate to make a strength-weakness analysis and helps to focus on the weaker sections/areas. This feature helps to reduce the study time in a considerable manner. It also tells the candidate whether he/she is ready for the EA exam or not. Cost is relatively lesser than Gleim but support is also poor than Gleim.

• Lambers

Lambers is also an international player as a publisher of EA exam study materials. Although content-wise, some people may not consider this as in the same bracket as Gleim or Surgent, Lambers also the choice of some EA candidates who find it suitable as per their learning pattern and mindset. One of the unique features of Lambers EA exam study material is that it has 450 digital flashcards in addition to other EA course material. If you like to learn by answering flashcards, Lambers can be your choice. Cost lesser than above two.

• Fast Forward

This is one of the affordable EA exam study materials containing all the required elements for the EA exam. A user-friendly study material with a vast number of MCQs in the data bank. The software also tracks your performance in the mock tests and tells you about your exam readiness. However, the answer explanations are not in-depth as it is there in the Gleim material. Since it is more comprehensive and affordable than others mentioned above this has been preferred by many of the EA exam aspirants.

EA Test Bank

The EA exam contains 300 MCQs with wide coverage. Hence, one must practice a lot of questions to get through. A test bank is basically a collection of MCQs like those on the exam. Briefly, using a test bank allows you to become more familiar with the exam content and testing environment. It also helps you avoid memorizing the questions. 

Summary

If you are a serious candidate who wants to pass on the first try, the Gleim EA exam can be chosen for several reasons. Among a few, Gleim EA Review is a preferred provider for the NATP (National Association of Tax Professionals). Furthermore, it also has the best practice questions. While EA test bank size varies, Gleim and Fast Forward have the best test banks on the market. Additionally, Gleim EA Review provides unlimited practice exams so you can study what you need and be fully prepared on exam day. Last but not the least, whatever EA exam study material you select, should match your learning style. So, get…set and go.

For further information/assistance, contact: www.upliftprofessionals.in/Enrolled_Agent

The area of taxation accounting demands a skilled professional to deal with whether for an individual or a business. When we consider such professionals, two coveted international credentials often come to our mind- a Certified Public Accountant or an Enrolled Agent (EA). Obviously, we will want to know which of them will serve the purpose and what are areas they are specialized for rather than the differences between the two irrespective of either engaging them or choosing either or both for career development. Let us discuss the differences between a CPA and an EA here.

It is to be noted that both Enrolled Agents (EA) and Certified Public Accountants (CPA) are licensed professionals who can effectively handle the tax issues of an individual or a business. The primary difference between the two lies in the fact that the license of an EA is authorized by the federal government, i.e., the Internal Revenue Service (IRS) while the CPA license is issued by any of the 55 U.S. states.

This means a CPA has restricted authority to the state level whereas an EA can work across the country. A CPA license is a two-way process where one must clear the CPA exam conducted by AICPA first and then apply for the license separately. On the contrary, an EA license is a single-step process by which one can get an EA license by clearing the exam only.

For a job aspirant, it often creates a dilemma of which path to take in the domain of accountancy.  The roles of EAs are centered around a specific niche i.e., taxation but holding greater authority since they represent their clients before the IRS. On the other hand, CPAs’ range of services are much wider rather than taxation and expanded to public accountants, tax accountants, personal finance managers, business consultants, auditors, etc.

What is a CPA?

A licensed CPA is used to carry the following roles :

• Accountants
• Financial Advisor
• Tax specialists
• Financial Planner
• Individual and Business Consultants
• Chief Financial Officer
• Auditor
• Controller

It means apart from preparing and filing tax returns, a CPA can do auditing and is able to give wealth-related financial advice. For earning a CPA credential, one must clear the four parts of the CPA exam administered by AIPCA where 18 months’ time will be given to pass the sections in an exam cycle. CPAs are governed by the individual US states each of which has different eligibility criteria regarding age, experience, educational qualifications, etc.

What is an Enrolled Agent (EA)?

• An enrolled agent (EA) is an IRS-authorized tax professional. EA is considered highly coveted as it is the highest credential awarded by the IRS.
• EAs are especially skilled in taxation in its most complicated form. They can represent their client before the IRS regarding tax disputes/discrepancies, appeals, etc.
• Being a federal license holder, EAs can represent any taxpayers from any part of the country to any IRS office without restriction. To earn an EA license, one must pass the three parts of the Special Enrollment Examination (SEE) exam. After clearing one part, the candidate can take the other parts at convenience. The score stays valid for two years. Former IRS employees with the required skill and expertise can get the EA license directly without any exam.
• Ethical commitment is a must for an EA. To maintain the standard, completion of 72 hours of continuing education courses is mandatory after each 3 years for a licensed EA.

Briefly:

CPA Vs.EA-Licensing

CPA: Professional bodies of different US states give the license.

EA: Federal Government, IRS.

CPA Vs.EA-Examination:

CPA: One must clear a 4-part CPA exam.

EA: One must clear the 3-part SEE exam.

CPA Vs.EA-Exam Sections:

CPA:

• Auditing and Attestation (AUD)
• Business Environment and Concepts (BEC)
• Financial Accounting and Reporting (FAR)
• Regulation (REG).

EA:

• Individual
• Business
• Representation, Practices, and Procedures.

CPA Vs.EA-Exam Features:

CPA: Passing of all 4 parts is required within 18 months. A minimum of 75 marks is required to pass each part of the exam.

EA: The score of each test section is valid for 2 years which has been extended to 3 years due to covid. The passing score for each section is scaled to 105.

CPA Vs.EA-Cost:

CPA: 180-250$ per exam.

EA: 203$ per exam part.

CPA Vs.EA-Expected Salary:

CPA: Around 66000$ a year with 1 yr experience.

EA: 40000-65000$ per annum as per experiences.

Which Path to take?

If you have the inclination, determination, and the required academic and professional qualifications with the intent to become a seasoned auditor in public accounting along with the tax matter, go for the CPA but keep in mind it is costlier.

On the other hand, if you want to work as a tax professional in a specific domain EA should be your cup of choice. Mind it, to be an EA, there is no set academic qualification. The exam is quite easier than CPA and is economical and affordable too.

However, since the REG part of CPA is covered in EA, one can also go for a dual qualification simultaneously by availing some offers like what Uplift Pro is providing where a free EA course is offered with official CPA admission.

For Further Information/Assistance, Contact:

www.upliftprofessionals.in

Once you have decided to pursue the prestigious Enrolled Agent (EA) course and are about to surface as an IRS-authorized Tax professional the following tips will help you to successfully crack the 3-part EA exam. The EA exam is known as Special Enrollment Examination (SEE) having the following structure.

Part 1 – Individuals

Part 2 – Businesses

Part 3 – Representation, Practice, and Procedure

Each part of the exam has approximately 100 questions in one of three multiple-choice formats:

• Direct question
• All of the following except
• Incomplete sentence

The results of the exam are obtained by calculating the correct answers out of the total number of questions. That number is then converted to a scale that ranges from 40 to 130 where the cut-off pass mark is 105. Applicants qualifying for a part of the exam may carry forward the score for up to two years from the date of qualifying for that part.

The tips to Crack the Exam

1. The Organized Study Plan

Prior to starting your study preparation, make a judicious plan to study at least 50 hours for each part of the exam, at a pace of at least 10 to 15 hours per week. Write plenty of notes in your own words.

2. Consider a Review Course

Although some free stuff is available on the IRS site, it is advisable to select a good review course either for self-study or some mentoring system for effective value addition.

3. SWA

Do a Strength-weakness analysis (SWA) on the respective part of the examination by chalking out the stronger and weaker areas which help to identify the areas to be focused more.

4. Self-Practice

Continue practicing MCQs by attempting as many mock questions as you can.

5. Evaluation

Frequently make assessment of your progress by mock evaluation scores and improvise accordingly.

6. Updating

Get in continuous touch with the IRS website for being updated with any tax amendments reflected on the website.

7. Online Testing

It is always better to get familiar with the prometric online testing system in advance. Although prometric allows 15 minutes for this practice at the time of the exam, it is better to know it earlier in advance from the prometric site.

8. Taking Break

It is advisable to take 15 to 30 minutes recess to give your brain a break for every hour you study and help you refocus when you return.

9. Self-appreciation

Set a benchmark in your study and reward yourself with anything as a reward after achieving the set benchmark.

10. Remain Fearless

Get yourself free from exam phobia without thinking about the outcome or score. It would be better to get the full satisfactory preparation and take the exam in a tension free manner rather than casually to get the best results.

Summary:

Considering the average pass rates as disclosed by Prometric’s for the last 3 years which are (1) approximately 88% for Part 3, (2) 72% for Part 1, and (3) 57% for Part 2, one can think of taking the part 3 first for boosting the confidence. But again, this decision must be matched with the mindset, competence, self-evaluation, and confidence of the aspirant.

So, nothing to be taken lightly to think out of the box. If you are going to take the exam one part at a time, better not to schedule a long interval between Parts 1 and 2. There are several topics that overlap these two parts (e.g., travel and entertainment expenses, related party losses, sales of property, and non-taxable exchanges), so you can recall it easily in a shorter time frame. Hope the above tips and discussion will help to crack the EA exam comfortably.

For Further Information/Assistance, Contact: www.upliftprofessionals.in/Enrolled_Agents