Enrolled Agent Exam Cost: A Complete Breakdown
Enrolled Agent Exam Cost: A Complete Breakdown
The Enrolled Agent Exam cost is a crucial consideration for aspiring tax professionals aiming to earn the prestigious IRS designation. This breakdown covers all the significant fees, from exam registration to ongoing maintenance costs. Knowing these expenses upfront will help you plan and budget effectively on your journey to becoming a certified Enrolled Agent.
EA Exam Testing Fee + PTIN Fee
The first step in becoming an EA is obtaining a PTIN (Preparer Tax Identification Number), which the IRS requires for tax professionals. A PTIN costs $30.75.
Once you have your PTIN, the next step is passing the Enrolled Agent Exam (SEE). The exam has three parts:
- Part 1: Individuals
- Part 2: Businesses
- Part 3: Representation, Practices, and Procedures
Each exam part comes with a testing fee of $259, bringing the total for all three parts to $777. When scheduling the exam at a Prometric testing center, you must pay this fee, which accepts payments via MasterCard, Visa, American Express, and electronic checks. Unfortunately, personal checks or cash are not accepted, and the testing fee is non-refundable and non-transferable.
If you fail a part of the exam, you'll have to pay the testing fee again when you register to retake that section. Thus, passing each part on the first attempt is the best way to avoid unnecessary costs.
Enrolled Agent Review Course Materials
Investing in Enrolled Agent review courses is highly recommended to increase your chances of passing all three parts of the exam on the first try.
One of the most popular options, the Gleim EA Review or Hock International, costs between $500 and $600+ for a complete package covering all three exam parts. Although you can buy materials for individual parts, purchasing an entire course upfront saves money in the long run by providing everything you need in one package.
Study Materials Breakdown:
- Entire Course (3 exam parts): $500 - $600+
- Individual Parts: Varies depending on the provider
Investing in quality study materials reduces the risk of retake costs and gives you the tools to pass confidently.
Enrollment to Practice Fee
After successfully passing all three parts of the EA exam, you must submit Form 23 to complete enrollment and officially become an Enrolled Agent. A $140 fee for this step must be paid at the time of form submission. You have one year from the date you pass the final exam part to complete this process.
Maintenance Fees
Becoming an Enrolled Agent is just the start. You'll need to meet continuing education (CE) requirements to maintain your designation. On average, CE courses cost around $200-300 per year. These courses help you stay up-to-date with tax laws and maintain your status as a tax professional.
Recent EA Exam Fee Increase
Recently, the IRS increased the EA exam fee from $206 to $259 per part. This change was driven by:
- Decreased demand from tax preparers, making the EA designation more exclusive.
- Higher administrative costs.
- Increased expenses related to vendor verification.
While this is a significant increase, the National Association of Enrolled Agents (NAEA) negotiated to keep the hike as low as possible. It’s unlikely that the exam cost will increase again soon.
Enrolled Agent Exam Cost Summary
Here’s a comprehensive breakdown of the costs involved in becoming an Enrolled Agent:
| Item | Fee |
|---|---|
| PTIN Fee | $30.75 |
| Testing Fee (per part) | $259 (or $777 total for 3 parts) |
| Review Course Materials (mid-range) | $500+ |
| Enrollment to Practice Fee | $140 |
| Continuing Education (annual average) | $250 |
| Total | $1,538.75 |
It’s important to note that this estimate doesn’t account for any retake fees if you need to reschedule or fail an exam part. Additionally, rescheduling your testing appointment 5-29 days before the exam incurs a $35 fee.
EA Exam Savings Tips
While the total cost may seem high, there are several ways to save:
- Pass each exam part on the first attempt to avoid retake fees.
- Look for exclusive discounts on EA review courses to save hundreds of dollars.
- Some providers offer bundled CE courses at a discount when you purchase them alongside your review materials.
Investing in a high-quality EA review course is one of the most effective ways to ensure you pass on the first try, saving time and money.
Conclusion on enrolled agent exam cost
Becoming an Enrolled Agent involves a significant financial investment, with the total cost of the Enrolled Agent Exam amounting to around $1,538.75. By understanding these costs upfront and preparing thoroughly with suitable materials, you can streamline the process and avoid extra fees from retakes.
Passing the exam on the first attempt, using strategic discounts, and staying on top of your continuing education requirements will ensure that you maximize your investment in this prestigious IRS designation.
If you’re ready to take the next step in your tax career, now is the perfect time to prepare for the Enrolled Agent exam. Explore our exclusive discounts on review courses and get the necessary resources to succeed!
Do also consider taking the AICPA US International taxation course to complement your EA exam
Questions? Answers.
To become an Enrolled Agent, you must:
- Pass the Special Enrollment Examination (SEE), which is a three-part exam covering:
- Alternatively, if you have experience working for the IRS (at least five years in a relevant tax position), you may qualify without the exam.
- Apply for enrollment by submitting Form 23, “Application for Enrollment to Practice Before the IRS,” and undergo a background check to ensure you comply with tax laws.
The SEE is a three-part exam that tests your knowledge of tax laws and your ability to represent taxpayers before the IRS. Each part of the exam focuses on different aspects of U.S. tax law:
- Part 1: Individual Taxation
- Part 2: Business Taxation
- Part 3: Representation, Practices, and Procedures
You must pass all three parts within a two-year period. The exam is administered by Prometric and is available year-round.
To renew your EA status, you need to:
- Complete Form 8554, “Application for Renewal of Enrollment to Practice Before the IRS,” and submit it before the expiration of your current enrollment cycle.
- Confirm you have met your CPE requirements for the three-year period.
- Pay the renewal fee (currently $140 as of 2024).
Your renewal period is based on the last digit of your Social Security Number:
- 0, 1, 2, 3: Renew by January 31 of years divisible by 3 (e.g., 2026, 2029).
- 4, 5, 6: Renew by January 31 of the year following those divisible by 3.
- 7, 8, 9: Renew by January 31 two years after the year divisible by 3.
Yes, an EA can lose their status for various reasons, including:
- Failure to meet CPE requirements.
- Failure to renew your enrollment by submitting Form 8554.
- Unethical behavior or violations of IRS regulations (e.g., tax fraud, negligence).
If you lose your status, you will need to reapply and, in some cases, retake the SEE to regain your credentials.
It’s important to track your CPE hours to ensure you meet the requirements. Many IRS-approved providersautomatically track your hours and issue certificates for each course. You should:
- Keep a record of completion certificates from each CPE course.
- Use a spreadsheet or online tracking tool to log your hours and ensure you meet the yearly 16-hour minimum.
Some CPE providers offer dashboards that allow you to track your completed courses and hours in real time.
While both EAs and CPAs can represent clients before the IRS, there are key differences:
- EAs specialize in tax and have unlimited practice rights to represent taxpayers before the IRS in tax matters.
- CPAs can offer a broader range of services, including auditing, accounting, and financial planning. However, their ability to represent clients before the IRS in tax matters is typically limited to those for whom they have prepared tax returns or provided other services.
EAs are generally seen as tax experts, while CPAs have a more generalized accounting background.
Form 23 is the “Application for Enrollment to Practice Before the IRS.” You file this form:
- After you pass all three parts of the SEE, or
- If you qualify based on prior IRS work experience (at least five years in a relevant position).
Filing Form 23 is the final step in becoming an Enrolled Agent. You must also pass a background check and pay the initial enrollment fee.
- After passing the SEE, you must submit Form 23.
- The IRS will conduct a background check to ensure you have complied with U.S. tax laws.
- The approval process typically takes 60-90 days, depending on the completeness of your application and the IRS's review workload.
We have addressed most of the EA questions in our blogs. Refer to these blogs
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