An Enrolled Agent (EA) Definition: Who is an Enrolled Agent?
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 or business tax returns, or through experience as a former IRS employee.
Achieving "EA" status is considered the highest credential awarded by the IRS and is legally recognized throughout all U.S states.
EAs are able to provide advisory services and prepare tax returns for anything that is required to report under the IRS. They include entities such as individual taxpayers, corporations, trusts, and estates. Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights.
Eligibility: How can you become an Enrolled Agent?
The IRS does not require any specific educational background to become an enrolled agent. A graduate holding basic accounting knowledge is eligible to apply for the exam but an applicant has to pass each section of the three-part exam and undergo a background check. This can happen in either of the two ways mentioned below:
Clear the 3-part IRS Exam:
Part - 1: Individuals
Part - 2: Businesses
Part - 3: Representation, Practices and Procedures