Carrie C. Susz, EA

If you’ve considered getting the Enrolled Agent designation, go for it! But then, your first question is probably going to be, “How do I study for this darn thing?”

Let me tell you what I did: I took a class. Not just any class–H&R Block’s class. You see, at the time that I was working for Block, I had a mostly free summer (besides my college classes) where I was able to study.   Taking the course through Block was only $20, too–what a deal!  It was after my second year in taxes that I took the Block class and passed the exam. At the time that I took the exam, there were four sections. Now, on the other hand, there are three, since two of them were consolidated. (See my previous post on EA vs. CPA.)

But looking back, the question is: do you really have to take a class? No, I don’t think so. If you have experience in all types of taxes–both business and personal–it is possible to pass. So here’s how I would approach it if I were taking it today…

1. Look at the questions on the IRS website from prior years to see if you really want to do this. Luckily, there are six years of exams on the site. Keep in mind that the questions from each of the exams are specific to the year they were tested.
2. Submit your form 2587 so you can sit for the exam.
3. Find a book full of updated questions for the SEE (Special Enrollment Examination). If your local bookstore doesn’t have one, look online for a current one.
4. Work through the questions. Repeatedly. Seriously, this is how I passed with minimal of instruction. I worked the questions, looked up answers I didn’t understand, and took notes. I didn’t feel really comfortable with it until I was getting an 87% on all the practice sections. For some of the sections, it was easy, for others, I spent a lot of time on it. For two weeks before I took the test, I studied 8-10 hours a day. (Remember, I took all 4 sections in two days.)
5. Read Circular 230. I’m not kidding. Read it over and over. Take notes.
6. Learn about various penalties. Failure to file, late payment, fraud, all of the penalties–business, fiduciary, and individual.

Ready? Well, here’s some info to get you started, courtesy of the IRS. Good luck!