EA Test

[JonesTaxPro]

I am going to be attempting the EA exam this summer and would like some suggestions and opinions on which study guide would be the most beneficial both educational wise and financial wise. I have looked at Gleim Products and Fast Forward Products. Comments on either or both or other suggestions for study guides. Thanks

Sara

[jainen]

>>suggestions for study guides<<

You can find previous posts on this topic by searching for keywords such as Gleim and classroom. Here is how I recently answered the same question on a different forum.

The CONTENT of all EA courses is identical, and can be downloaded for free from the IRS web site. It is the actual test questions and answers from prior years.

But learning STYLE varies greatly in adults. Be honest with yourself. You might do much better with a classroom setting like H&R Block (for specific topics), or at least a study buddy. If you like self-paced correspondence, are short lessons better than comprehensive topics? How much "commentary" do you need for analysis, or would you rather have plenty of cross references so you can do your own research?

Cheap courses give you Pub 17, an easy to read IRS publication. Some of the test questions might be based on examples from that book, but they won't be exactly the same so that might either help you or confuse you.

Expensive courses give you something like the Master Tax Guide. Such books basically quote or paraphrase the code and regs, so they are much harder to read but cover a lot more detail and alternatives. That can also be either helpful or confusing, depending on how your own mind works.

[Catherine]

I am going to be attempting the EA exam this summer and would like some suggestions and opinions on which study guide would be the most beneficial both educational wise and financial wise. I have looked at Gleim Products and Fast Forward Products. Comments on either or both or other suggestions for study guides. Thanks

Sara

Jainen is right in this instance. The most important thing to figure out is how YOU learn best. Then, you can look at what types of products fit that style.

Gleim worked beautifully for me -- but I do best with self-study, and I also do well with computer-based testing. A classroom is the -worst- place for me to learn (had I known before college.... ) .

If you learn from listening to explanations, Gleim would be tortuous for you.

So start by thinking back at ways you've learned things and what worked well for you. Then go from there.

Catherine

[JonesTaxPro]

I have printed off the 2005 test from the IRS. Is this a good start to study for the test? Has anyone worked with the Fast Forward program? $$ wise it is more in my budget, but how good is it? I have also taken the H&R block course (ok) and a course through our local tech school (much better). Any help would be much appreciated.

[Lion EA]

If you've already taken one or two EA study courses as you say, then list your weak topics. Go straight to the IRS Pubs for those topics. Make sure you read all the examples in the Pubs. After that, review your course texts and sample tests from your courses and see if you're comfortably in the passing range now. If not, look at what you missed, list your weak topics. Rinse and repeat.

[Lynn EA USTCP in Louisiana]

This, from the National Association of Enrolled Agents

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

BECOMING AN ENROLLED AGENT

FREQUENTLY ASKED QUESTIONS

Q: I’ve heard that IRS is going to regulate all commercial tax preparers. Is this true?

A: Yes. The IRS is increasing oversight of federal tax return preparers and has laid out its general roadmap in Publication 4832, Return Preparer Review. The agency’s increased oversight will be phased in over several years and implemented through a variety of new regulations, starting with the requirement that paid tax return preparers obtain and use a preparer tax identification number (PTIN). IRS is also proposing additional regulations requiring preparers to demonstrate competency on returns they prepare and to take continuing professional education.

Q: What is an enrolled agent?

A: An enrolled agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels—examination, collection, and appeals—of the Internal Revenue Service. In addition to taxpayer representation, enrolled agents often provide tax consultation services and prepare a wide range of federal and state tax returns.

For more detail on how enrolled agents are regulated, Circular 230 provides the rules of practice for enrolled agents, certified public accountants and tax attorneys. The Office of Professional Responsibility (OPR) provides oversight to the enrolled agent profession, including the testing and renewal of enrolled agents.

Q: How do I become an enrolled agent?

A: There are two ways to become an enrolled agent: 1) work for the IRS for five years in a position requiring the interpretation of the tax code; or 2) pass all three parts of the Special Enrollment Exam (SEE) and pass a background check.

Q: What are the three parts of the SEE?

A: Part 1 covers Individuals, Part 2 covers Businesses, and Part 3 includes Representation, Practices and Procedures. A complete list of the topics covered under each part can be found on Prometric’s website in the Candidate Bulletin.

Q: Where can I find information on becoming an enrolled agent?

A: Visit NAEA’s website, click on Resources and select Becoming an Enrolled Agent. The section contains detailed information about the testing process, resources available to candidates and even information about how to keep your license once you’ve earned it. Prometric, the company selected by IRS to administer the SEE, maintains a website where candidates can learn more about the SEE and register for the test.

Q: Is there an educational or experience prerequisite to becoming an enrolled agent?

A: No. What counts is your knowledge of the tax code, which is proven by passing the SEE. Earning the enrolled agent license demonstrates your advanced knowledge of tax issues.

Q: Does NAEA have a class to help me prepare to take the SEE?

A: Yes. NAEA offers both an online prep and in-person review class. The extremely popular online program has five sessions per year, and each part of the SEE is given in each session. You may take the parts in any order you wish, but only one part in any given session. As a student, you learn by completing study assignments and quizzes as well as by attending periodic facilitator-led conference calls. NAEA’s program provides a start and a finish date, with the expectation that students will take the SEE at the end of the course. NAEA facilitators encourage students and help keep them on track. All facilitators are experienced enrolled agents, as well as qualified and engaging instructors.

The in-person SEE review is an educational track at NAEA’s National Conference held each August. This class is designed for experienced tax professionals, and provides a review of all test areas. Contact NAEA directly for more information about this class.

Q: How long is the online course?

A: Parts 1 and 2 are eight (8) week courses and Part 3 is a six (6) week course.

Q: Do I need to be available certain hours to participate in the online program?

A: There are no set hours -- participants will have access to Gleim’s website 24/7. The online program is geared towards professionals with 3-5 years of experience, and NAEA recommends that students dedicate at least 20 hours per week to studying for the SEE. Students with less experience will need to study more in order to learn the material thoroughly.

Q: How much is NAEA’s online course?

A: NAEA member fee is $349 per section and non-members is $385. Purchasing all three parts at one time saves money; it’s $920 for members, and $995 for nonmembers. Materials are included in the registration fee, which consists of NAEA’s facilitation, and Gleim’s online program, textbook, test prep cd and an audio cd. Shipping and handling is also included.

Q: May I join NAEA before I take the SEE?

A: Yes, it’s a great idea. Non-enrolled preparers may join as Associates, which offers the same benefits and discounts with the exception of being listed as an enrolled agent. Associates cannot hold office or vote. Joining now provides access to the information which can help you achieve your goals and help build your career!

Q: When and where is the test offered, and how much is it?

A: The SEE is offered ten months a year (every month except March and April). You’ll need to schedule your test in advance by contacting Prometric, which has over 300 sites in the US as well as a number in foreign locations. A list of test locations can be found by clicking on the “Do More” box on the right hand side of the screen. Each part costs $101. Applicants will need a PTIN to schedule a test. Information on acquiring a PTIN is available on IRS’ website.

Q: What types of questions are on the test?

A: The SEE is a multiple choice exam, and each question has four potential answers. The question styles may include direct questions, incomplete statements or “all of the following except” questions.

Q: How is the test graded?

A: Prometric uses multiple versions of each test, and employs a scaled scoring process to ensure comparability between those versions. Each item in the exam is worth one point, and scaled scores are determined by calculating the number of questions answered correctly from the total number of questions in the examination and converting to a scale that ranges from 40 to 130. The IRS has set the scaled passing score at 105, which corresponds to a minimum level of knowledge deemed acceptable by those persons who will be practicing before the IRS.

Q: I’ve heard that there are questions that don’t count on the test. Is this correct?

A: Yes. Your test may include some experimental questions that will not be scored. If present, they will be distributed throughout the examination and will not be identified as such. These are used to gather statistical information on the questions before they are added to the exam as scored items. These experimental questions are not counted for or against you in your final examination score.

Q: What happens if I fail?

A: You’ll know as soon as you complete the test. A failing score is 104 or less, and the program will tell you your score only if you fail. Each part may be taken up to 4 times in any testing year.

Q: What happens if I pass?

A: Celebrate! Your score will not be released to you, only that you passed. Once you pass one part, you have two years to pass the other two parts of the exam.

Q: Once I’ve passed all three parts, what do I do?

A: Within one year of your final test, submit Form 23, Application for Enrollment, and an application fee of $125 directly to IRS. The IRS will take 60-90 days to process your application and conduct a background check, which will include your tax compliance as well as criminal background.

Q: What do I need to do to keep my license, once I’ve earned it?

A: Enrolled agents renew on a staggered schedule, based on the last digit of the enrolled agent’s social security number. To be eligible for renewal for the enrollment cycle, an enrolled agent must complete 72 continuing professional education (CPE) credit hours for the three year cycle, with a minimum of 16 CPE per year. Two CPE credit hours per year must be in ethics.

Members of the National Association of Enrolled Agents are required to earn 30 CPE hours in each calendar year, including two hours of ethics. Members report their hours for the prior calendar year as they renew for the upcoming membership year. NAEA offers many opportunities for CPE each year, both in-person and on-line.

Q: Is there someone I can talk to about all this?

A: Yes. Contact us at [email protected] or 202-822-6232. NAEA’s state affiliates may also offer classes or other resources to help you succeed. We’re happy to help!

National Association of Enrolled Agents

1120 Connecticut Avenue, NW Ste 460; Washington, DC 20036-3953

202-822-6232; 202-822-6270 fax; [email protected]; www.naea.org

[Lion EA]

NATP EA Exam Review Textbooks Are Available Now!

If 2010 is your year to become an enrolled agent, let NATP help with our 2010 EA Exam Review textbooks. Not only will you get information that will help you pass the EA exam, but you will also receive study guides to assist you through the process. Special pricing is available to NATP members:

• Part I (#3003) - $54
• Part II (#3004) - $64
• Part III (#3005) - $44
• All Three Parts (#3006) - $155

For more information or to order, call 800.558.3402, ext. 3, or visit the NATP website and click on Tax Store.

[Robert H]

I am going to be attempting the EA exam this summer and would like some suggestions and opinions on which study guide would be the most beneficial both educational wise and financial wise. I have looked at Gleim Products and Fast Forward Products. Comments on either or both or other suggestions for study guides. Thanks

Sara

I have used products from both companies and they are both great options. Out of the two, Gleim is the most expensive. The Fast Forward Academy enrolled agent exam workbook is very good. They also have a free online question bank that you can use to practice. As far as I know, no other company does that.