An enrolled agent, popularly known as an EA, is a tax practitioner authorized by the Internal Revenue Service (IRS). The EA enjoys 100% representation rights in all states, regardless of geography or other restrictions. Further, as an IRS-authorized professional, an Enrolled Agent (EA) is empowered to represent taxpayers, provide tax preparation services, and offer tax advice and advocacy.
As their scope of work is wide and important, the EA students must develop a keen understanding of the various taxation laws. Therefore, they must pass a rigorous examination that divides into three levels:
Level one, the individual level, covers taxation laws applicable to individuals. With time, individuals have ventured into varied financial dynamics, and individual taxation has become complicated. Given this factor, the Enrolled Agent syllabus now includes a variety of subjects on the topic.
Level two of the US EA exam, Business Level, is the most extensive of all three levels in terms of subjects covered. It covers tax and taxation laws for businesses and business entities, which have always been tricky and have become even more complex with time. Therefore, the second level of the EA exams has several comprehensive subjects to prepare students for such complexities and difficulties.
The third and final level of the US EA examination, Representation, Practices, and Procedures, is the most unique. The students are trained to practice and represent themselves in front of the IRS. In some ways, this level is about the practical application of theoretical knowledge.
In terms of examination and qualification, all three exams are 100% objective and total 130 marks each. To qualify, students must attain a minimum score of 105 in each exam. Once they have started the course, students have ample time. They have two years to clear the remaining two exams, and there are numerous chances to retake an exam they cannot qualify for.