NAEA
National Association of Enrolled Agents
Your career
as an
Enrolled
Agent
www.naea.org
POP
QUIZ
What does EA stand for?
Today we are going to talk about
What’s an Enrolled Agent?
 What is the licensing process to become
an Enrolled Agent?
 How does becoming an Enrolled Agent
help you in your career goals?

What is an Enrolled Agent?
Enrolled Agents (EAs) are tax
practitioners with technical expertise in
taxation and are fully authorized to
represent taxpayers before all
administrative levels of the Internal
Revenue Service (IRS) including audits,
collections and appeals.
 Enrolled Agents can be self employed or
work for small or large firms.

What License allows you to
represent taxpayers before the IRS?
Enrolled Agent – Federal – Licensed by
the United States Treasury
 Certified Public Accountant –Licensed by
a state
 Attorney – Licensed by a state

How do Enrolled Agents differ
from other licensed taxpayer
representatives?

Enrolled Agents are the only taxpayer
representatives who receive their
license from the United States Treasury.
◦ CPAs and Attorneys are licensed by each
individual state.
How will the EA license benefit me?

It is a profession with:
◦ Job security
 Everyone pays taxes and the tax laws are complicated.
◦ Widely useful knowledge
 Many companies prepare their financials on tax basis
accounting and accounting firms expect you to know the
tax consequences of accounting decisions.
◦ Structure
 Adherence to tax law ensures accurate results.
◦ Meaningful work
 Professionals who are proficient in tax law are held in
high regard.
How many Enrolled Agents are
there?
There are approximately 40,000 Enrolled
Agents in the United States
 There are also Enrolled Agents living and
working in foreign countries

POP
QUIZ
What % of all jobs in the United
States are provided by small
businesses?
A.
B.
C.
D.
20%
33.3%
55%
1%
POP
QUIZ
What % of all jobs in the United
States are provided by small
businesses?
A.
B.
C.
D.
20%
33.3%
55% Correct
1%
How do I become an Enrolled Agent
Pass the IRS Special Enrollment Exam
-OR Be an employee of the IRS for 5 years –
regularly interpreting the provisions of
the IRS Code and Regulations

What is the Enrolled Agent exam?

Comprehensive three-part tax exam
which covers taxation issues for:
◦ Individuals
◦ Businesses
 Corporations, partnerships, estates and trusts
◦ Representation, Practices and Procedures
(including Ethics)
How comprehensive is the Enrolled
Agent exam?
You are allowed 3.5 hours to complete
each of the three parts
 Each part contains 100 multiple choice
questions
 Parts can be taken in any order
 Passed parts of the exam remain active
for 2 years

POP
QUIZ
What is the historic pass rate for
the Enrolled Agent exam?
A.
B.
C.
D.
60%
90%
42%
70%
POP
QUIZ
What is the historic pass rate for
the Enrolled Agent exam?
A.
B.
C.
D.
60%
90%
42%
70% Correct
How can I prepare to take the
Enrolled Agent exam?
Self study
 Facilitator-led correspondence courses
 Intensive review course
 Specialized prep courses offered through
some community colleges and NAEA
chapters
 Any combination of the above

I am planning on taking a CPA
exam prep course, can I use this
material to study for the Enrolled
Agent exam?

Much of the study material for the regulation
(REG) section of the CPA exam will help you
pass the Enrolled Agent exam however, you
should supplement this with some dedicated
Enrolled Agent study material
◦ Many companies that offer CPA review courses
also offer Enrolled Agent prep courses
Are there any other requirements
to be an Enrolled Agent?

In addition to the application fee payment, the
Treasury Department will conduct a background
investigation based on detailed information you
must provide after you pass the exam.
◦ The investigation will include an examination (not an
audit) of your tax returns for the past 3 years.

A college degree is not a requirement to become
an Enrolled Agent, making Enrolled Agent an ideal
part time career choice for students in the
accounting and taxation field.
POP
QUIZ
Who is the largest taxpayer in the
United States?
A.
B.
C.
D.
E.
Microsoft
ExxonMobil
Berkshire Hathaway
Apple
Chevron
POP
QUIZ
Who is the largest taxpayer in the
United States?
Microsoft
B. ExxonMobil Correct $31 Billion (2013)
C. Berkshire Hathaway
D. Apple
E. Chevron
A.
Can I get a part time job as an EA
or potential EA while I am still a
student?


Temporary agencies, especially those that
specialize in accounting and taxation, allow
students to work flexible schedules and gain
experience in tax preparation while they are
preparing for the Enrolled Agent exam.
Employees who have a license, such as an
Enrolled Agent, command higher salaries
even while working in temporary positions
What other employment
opportunities are there for an
Enrolled Agent?

Enrolled Agents are needed in:
◦
◦
◦
◦
◦
◦
Small and large public accounting firms
Law firms
State departments of revenue
Investment firms
Banks
Private practice
POP
QUIZ
The IRS Commissioner is the head of the Internal
Revenue Service. The Commissioner is appointed by
the President with the consent of the Senate. The
Commissioner serves a term of
A.
B.
C.
D.
1 year
4 years
5 years
Indefinite
POP
QUIZ
The IRS Commissioner is the head of the Internal
Revenue Service. The Commissioner is appointed by
the President with the consent of the Senate. The
Commissioner serves a term of
A.
B.
C.
D.
1 year
4 years
5 years Correct
Indefinite
I have thought about going into
private practice. Is that really a
possibility?

There are several ways to go into private
practice; they include:
◦ Building a practice from the ground up using
marketing and referrals
◦ Purchasing a tax franchise
◦ Purchasing a portion or all of an existing tax
practice
How do I find a reputable tax
practice to purchase and how much
will it cost?
Contact a company that specializes in the
sale of retiring or downsizing tax and
accounting practices
 Because each firm is different, each sale
will be different. Expect 1.0 – 1.3 times
the annual gross of the existing firm to be
a good opening negotiable amount.

Is there financing available to assist
in the purchase of an existing
practice?

Financing is available from:
◦
◦
◦
◦

Small Business Administration
Local banks & credit unions
Private equity groups
Seller financed
Most purchases will require a 15% - 20%
down payment
POP
QUIZ
In 1862 the first personal and corporate income tax
was levied to help pay for the Union effort in the
Civil War.
This was a graduated tax with 2 tax rates of
A.
B.
C.
D.
1% and 2%
10% and 12%
15% and 20%
3% and 5%
POP
QUIZ
In 1862 the first personal and corporate income tax
was levied to help pay for the Union effort in the
Civil War.
This was a graduated tax with 2 tax rates of
A.
B.
C.
D.
1% and 2%
10% and 12%
15% and 20%
3% and 5% Correct
NAEA
National Association of Enrolled Agents
Challenges you to
begin your career
as an
Enrolled
Agent
www.naea.org