How to Crack Enrolled Agent Exam? Our Experts Guide

How to Crack Enrolled Agent Exam? Our Experts Guide

Overview of Enrolled Agent Course

The only tax professionals with a federal license who are experts in every aspect of taxes are called Enrolled Agents, or EAs. The IRS has granted a federal license to an Enrolled Agent, a tax expert, allowing them to represent people before the IRS. In addition to preparing and filing tax returns, enrolled agents can also represent clients in audits and offer other tax-related services. It makes them a priceless resource for taxpayers who require help with their taxes. It's a terrific way to start a career in the tax industry and a great approach to assisting others with their taxes to become an enrolled agent.
Being an enrolled agent can be the best option if you're seeking a competitive, lucrative, and fulfilling profession. But, every year, continuing education requirements must be met by enrolled agents to maintain their proficiency in tax law and ethics. The Northstar Academy offers the best Enrolled Agent Course with several helpful resources to help you prepare for the role and pass the exam. 
You can get access to the below-mentioned resources in the Enrolled Agent course:
  • Enrolled agent exam study materials for comprehensive EA exam preparation that address every area of the tax code.
  • Knowledgeable teachers who can explain complex ideas and assist you in understanding them.
  • You may evaluate your understanding of the subject by taking practice sets for the EA exam.
  • An online discussion board where you may interact with other students and get suggestions on how to improve.
Get enrolled in the best EA course with detailed preparation resources accessible if you want to excel at the Enrolled Agent exam in India.

What is the Scope of the Enrolled Agent Course?

An Enrolled Agent (EA) is a person who has gained the right to prepare US tax returns and to represent taxpayers before the Internal Revenue Service (IRS) by completing a rigorous three-part IRS exam that covers both individual and corporate tax filings.
Many interested in this field have a great scope and access to various employment options. Given that the course covers US taxation, there are many options abroad, mainly in the United States. 
The Indian ITES - BPO and KPO sector, which serves the US and international financial and accounting sectors, is expanding at a rapid rate. All of these organizations, including Big 4s, need informed and talented professionals to provide US tax services to their US and international clients. Job seekers with EA qualifications are the most desirable professionals for these businesses since Enrolled Agent is the highest credential issued by the IRS for the US taxation profession. International Banks, Financial Institutions, the Big 4 accounting firms, and all Fortune 500 organizations with shared services need the EAs.
With an EA certification, you may qualify for the following job prospects:
  • Public accounting firm tax staff
  • Small Accounting firm tax staff
  • Investment firm staff
  • Law firm staff
  • Department of revenue staff

Enrolled Agent Exam Structure

Prometric administers the EA exam, also known as the SEE (Special Enrollment Examination), on behalf of the IRS. The exam is divided into three sections, each with 100 questions, and you must complete them in 3.5 hours. The enrolled agent exam structure has three sections:
  1. Individuals
  2. Businesses
  3. Representation, Practices, and Procedures
EA Part: 1 � Individuals:
The first section of the EA exam is divided into five sections:
  • Preliminary Work and Taxpayer Data (15%)
  • Specialized Returns for Individuals (15%)
  • Taxation & Advice (20%)
  • Deduction and Credits (25%)
  • Income and Assets (25%)
EA Part: 2 � Business
The second section comprises three topics:
  • Specialized Returns and Taxpayers (15%)
  • Business Financial Information (40%)
  • Businesses (45%)
EA Part: 3 � Representation, Practices, and Procedures
The third part is broken down into four sections:
  • Completion of the Filing Process (17%)
  • Specific Types of Registration (25%)
  • Representation before the IRS (25%)
  • Practices and Procedures (33%)
A thorough review of every exam section is necessary to have the best chance of passing it. The best preparation technique is enrolling in a course at a reputable training institution and getting the streamlined Enrolled Agent exam study materials for a thorough understanding of the topics.

Taking the EA Exam

As per the Enrolled Agent exam pattern, there will be 100 multiple-choice questions on each of the three EA exams, and each one lasts for 3.5 hours. Prometric testing facilities, which have locations in the US and abroad, handle the administration of the Enrolled Agent exam. To pass the complete SSE Exam, you will need to respond to 300 questions in total over the course of 10.5 hours. The three categories of questions are as follows:
  • Direct Question
  • Incomplete Question
  • "All of the following except" Question
There are no enrolled agent exam requirements that you must fulfill to take it. As per the EA exam pattern, you should be able to complete all three parts within a year, but you have an additional two years to complete them. To give more leeway during the COVID-19 pandemic, the IRS increased this time frame to three years. An exam credit you earn after passing a section is good for two years. The credit expires after two years, and if you haven't passed the other exam sections, you will need to retake that section.
When studying Enrolled agent exam study materials and taking practice examinations, you should spend more time if you find certain aspects of the format to be particularly difficult to increase your chances of passing the exam.

How to clear the Enrolled Agent Exams?

Even though the EA Exam requires substantial preparation and a solid grasp of taxes, you can easily pass on your first attempt with the right preparation. To gain an idea of what to anticipate, use the following tips and advice:
  • Enroll in a Study Course for the Enrolled Agent Exam
Numerous live and self-study review courses specifically focused on the SEE (Special Enrollment Examination) are available. The benefit of these courses is that the Enrolled agent exam study materials are usually structured in a compact way for optimum coverage after the experts have typically reviewed the previous exams. Essentially, you are paying for a systematic approach to exam preparation, which could be useful.
  • Notice & Adapt to New Content and Changes
IRS publications and tax legislation are continually evolving; some changes are noticeable, while others are more subtle. For instance, even the most fundamental tax laws were changed by the 2017 Tax Cuts and Jobs Act years ago. You must be aware of the material you will be tested on since legislative changes like these will eventually filter down into the Enrolled Agent Exam. In addition, tax rules from the prior year are tested on the EA Exam. Make sure the review course you enrolled in keeps up with the Enrolled Agent Exam, or keep an eye out for updates on the IRS website.
  • Prioritize Learning the Fundamentals
It's simple to become overwhelmed by the intricacy of tax laws, but remember that the Special Enrollment Exam measures a candidate's ability to represent people before the IRS at a fundamental level. It implies that the principles of US taxes as well as the most typical tax problems will be covered in each exam section. Despite the possibility of certain advanced topics being included, if you are completely certain of the foundations, you will succeed on the exam. Even more advanced tax issues could benefit from applying basic ideas you already know.
  • Learn the Fundamental Tax Formulae
You'll probably need to compute a range of essential tax figures, similar to how understanding the basics is helpful. For instance, you might need to figure out a person's adjusted gross income or a company's deductions. Learn the forms of fundamental tax calculations for people and other corporate organizations so that difficult computations become simple.
  • Familiarize Yourself with Prometric's Exam-day Protocols
If this is your first time taking an exam at a Prometric center, exam day may be stressful. Prometric testing facilities use stringent security procedures, including fingerprinting, ID scanning, personal scanning, and locker storage for personal belongings. If you're unfamiliar with these stringent rules, you're more likely to feel anxious and agitated before the exam.
Before the Enrolled Agent exam, spend some time reading the "What to Expect" portion of the Prometric website. You may get a detailed look at the testing process, including the arrival and check-in processes, the proctor and testing room procedures, and the test conclusion procedures.
  • Learn to Manage Your Time Effectively
The Enrolled Agent Exam is timed, so plan ahead to complete it in the allocated 3.5 hours for each part. The trick is to practice tests and learn how to pace yourself; you should always monitor the time and ensure you have enough time to see every question. Additionally, you have to attempt to schedule time towards the end for the questions you skip and devise a plan for doing so. There's a considerable possibility you'll encounter absolutely unexpected problems, and it's simple to become bogged down in difficult math questions. Move on to the ones you know the answer to rather than wasting time trying to figure them out. As time permits, you can go around again.

How to Register for the Enrolled Agent Exams?

People who want to work for the IRS must take and pass the Special Enrollment Exam. According to the enrolled agent exam structure, the exam consists of three sections. Prospective Enrolled Agents are not eligible to apply for enrollment unless they have passed all three exam components within a two-year window. The steps involved are listed below:
  1. Get a Preparer Tax Identification Number.
  2. Visit Prometric's Special Enrollment Examination (SEE) homepage to schedule your test schedule, read the SEE Candidate Information Bulletin, sample exam questions, and other test preparation materials. Within three years, receive passing scores on each of the SEE's three components.
  3. Apply for enrollment and pay the enrollment fee online using Pay.gov Form 23 or by downloading Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, filling it out, and submitting it together with a check to the IRS.
  4. Pass a suitability examination, which includes a criminal background check and a tax compliance check to make sure you have filed all required tax returns, and there are no outstanding tax liabilities.
  5. Some IRS employees are exempt from the enrolled agent exam requirements due to prior technical experience.

Conclusion

If you help clients with their taxes, you might want to consider a career as an Enrolled Agent (EA). EAs are prepared to handle practically every situation that could arise in the case of a taxpayer. If you are preparing for an enrolled agent exam in India,  you can join the EA review course provided by Northstar Academy.
At Northstar Academy, you may take advantage of our carefully produced EA review courses, which have been created with a top content partner to assist you in passing its three-stage certification exam. A practical and experiential learning style was implemented in creating the evolving EA course, and practice sets with functionality & difficulty similar to the real EA exam are provided for better preparation. In addition, you can access recorded videos and live interactive lessons via the NSA application from anywhere in the world. 
Please get in touch with us here if you still have questions that haven't been answered. Your questions about the EA certification program and the enrolled agent exam in India will be addressed by one of our experts.

FAQs

1. What is an enrolled agent?

The only tax professional with a federal license who specializes in all aspects of taxes is an Enrolled Agent (EA). Enrolled Agents represent taxpayers before the Internal Revenue Service (IRS) for tax matters, including audits, collections, and appeals.

2. Do the Big4s hire enrolled agents?

Yes, there are many positions available for Enrolled Agents within The Big 4 accounting firms.

3. How to become an enrolled agent?

Get a Preparer Tax Identification Number.
Submit an application to take the Special Enrollment Exam.
Achieve passing marks on each of the SEE's three parts.
Request enrolment.
Pass a suitability check, including a criminal background check and a tax compliance check to ensure you've completed all the required tax returns and there are no outstanding tax liabilities.

4. What is the work of an enrolled agent?

The responsibilities of enrolled agents extend beyond tax return preparation, tax advice, and IRS representation. They may assist with various businesses and tax-related issues, from phoning the IRS with notices to advising customers on how to lawfully maximize tax benefits.

5. Is an enrolled agent a good career?

Enrolled agents will be well-positioned to satisfy this need since it is anticipated that demand for tax services will increase in the upcoming years.

6. Is the enrolled agent exam easy?

The first portion of the Enrolled Agent Exam will be at an easy to moderate difficulty level, although the length of part 1 will provide a problem. The Part 2 test is of moderate complexity, and the exam preparation is simple. The syllabus is similarly normal.

7. What is the qualification requirement for EA?

There are no enrolled agent exam requirements or prerequisites for becoming an EA. Any graduate with a working grasp of accounting is eligible to apply. The applicant must demonstrate proficiency in tax-related matters.

8. What is an enrolled agent's salary in India?

After clearing the enrolled agent exam in India, an Enrolled Agent can get up to 4 - 7 lakhs annually.

9. What is the highest salary of an enrolled agent in India?

An Enrolled Agent with an experience of more than 8-10 years can earn up to INR 18-20 lakhs annually in India.

10. What is the scope of enrolled agents in India?

Given that the IRS backs an Enrolled Agent Course, it is highly respected in the sector. Law offices, corporate accounting departments, and large and small public accounting companies require them. EAs might work as tax staff for a public accounting firm, assisting with tax return preparation and offering tax guidance.
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