Definition
An enrolled agent (EA) is a tax professional authorized by the IRS to represent taxpayers before the IRS on audits, collections, and appeals. A person becomes an EA by passing the three-part Special Enrollment Examination and a suitability check, or through qualifying IRS employment. The credential is federal, so there is no state license. EAs must complete 72 hours of continuing education in each three-year enrollment cycle, at least 16 hours each year, and 2 hours of ethics or professional conduct each year (31 CFR 10.6(e)).
Why it matters in an audit or review
EAs matter to audit firms when a client's tax work is performed by an EA rather than a CPA, since an EA is not licensed to sign audit or review reports. EAs are practitioners under Circular 230 with the same IRS practice rights as CPAs and attorneys. An auditor reviewing a client's tax provision may rely on the preparer's work, but the credentials affect how the auditor evaluates competence.
Example
Illustrative: a client's tax returns are prepared and signed by an EA. The audit firm, also reviewing the tax accrual, evaluates the EA's experience with the entity type and the quality of the tax workpapers.
Common mistakes
Assuming an EA can issue attest reports. Only licensed CPAs and CPA firms can.
FAQ
Is an EA a CPA?
No. They are separate credentials with different authority.
Sources
- 31 CFR Part 10 (Circular 230), section 10.3 (who may practice) and section 10.6(e) (continuing education for enrolled agents)
- IRS, Become an Enrolled Agent: https://www.irs.gov/tax-professionals/enrolled-agents/become-an-enrolled-agent
- eCFR, 31 CFR 10.6: https://www.ecfr.gov/current/title-31/part-10/section-10.6
Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error