How to Take an IRS Enrolled Agent Practice to the Next Level

An IRS Enrolled Agent holds the highest level of professional status granted by the Internal Revenue Service. While CPAs, attorneys, and Enrolled Agents are all authorized to represent taxpayers before the IRS, Enrolled Agents have a unique distinction. 

EA must demonstrate expertise in all areas of taxation, representation, and ethics to earn their license. This credential qualifies them to offer a broad range of expert tax resolution services, yet many Enrolled Agents focus primarily on tax preparation. Although this may seem like a safe choice, it often comes with particular challenges:

• Unstable Workload: Tax prep work is highly concentrated into just a few months each year. In the months leading up to April 15, many Enrolled Agents spend 60 to 80 hours per week at their desks and nearly one in three work even more. 
• Fluctuating, Limited Income: When tax preparers aren’t filing returns, they’re not earning. While you might enjoy the extra revenue or a vacation in the weeks after most taxes are filed, chances are that the second half of the year will be difficult.
• Stiff Competition: There are more than 82,000 tax preparers practicing in the United States. Each of them is trying to attract the same tax prep clients that you are. Low-cost DIY software companies are saturating the marketplace and crowding the airwaves with ads. Even the IRS is getting in on the self-serve tax prep game.
• Lack of Independence: Large, impersonal firms expand into storefronts during tax prep season. They may want your help, but they’ll take a share of any revenue generated by your hard work.
• Poor Work-Life Balance: Concentrating all your work into just a few months can lead to low levels of job satisfaction, high stress, and burnout.

The good news is that a career as an IRS Enrolled Agent offers opportunities far beyond tax preparation and resolving basic tax disputes. We have tips that will elevate your practice, allowing you to smooth out your workload, charge more for specialized tax resolution services, and increase year-round revenue. 

Expand Your Skill Set by Becoming an NTPI Level 3 IRS Enrolled Agent

IRS PTIN renewal is required of each IRS Enrolled Agent every three years. To qualify, you must complete a minimum of 72 hours of continuing education (CE) during each enrollment cycle, with at least 16 hours completed each year and at least two hours of ethics or professional conduct education annually. While this might seem like a burden at first glance, it’s actually an opportunity. You can take advantage of this requirement to deepen your knowledge, gain certifications, and stay up to date on complex regulatory and tax law changes.

Offered by the National Association of Enrolled Agents (NAEA), the National Tax Practice Institute (NTPI) is a specialized education program designed to help Enrolled Agents develop the skills needed to manage the practical aspects of dealing with the IRS, including negotiation, audit defense, and tax resolution. 

The NTPI program is divided into three levels, each building on the previous one:

1. Level 1: Focuses on the basics of taxpayer representation, including the rights and responsibilities of both taxpayers and their representatives.
2. Level 2: Covers more advanced topics, such as dealing with IRS collections, negotiating installment agreements, and understanding the appeals process.
3. Level 3: Provides in-depth training on representing clients in audits, handling complex tax resolution cases, and preparing for Tax Court. 

With this advanced training in place, an IRS Enrolled Agent is in a better position to justify higher fees for their specialized services. Those who complete the program have the deepest understanding of the intricacies of tax law and IRS procedures, equipping them to handle the most complex – and highest paying – tax resolution cases. 

EAs who go through the program earn a designation that signifies their advanced skills in tax practice and enhances their professional credibility. Put it on your website and in your office window to attract the clients who need your services. 

Become an ASTPS Certified Tax Resolution Specialist

The American Society of Tax Problem Solvers (ASTPS) is a non-profit organization that supports tax professionals who specialize in helping individuals and businesses experiencing tax problems. It offers training programs and certification along with workshops, seminars, and other resources that can help Enrolled Agents gain the skills and knowledge necessary to take their practice to the next level. Their Certified Tax Resolution Specialist (CTRS) certification program covers in-depth topics such as IRS negotiation, offers in compromise, and collection strategies. 

Like the NTPI credential, the CTRS certification should be proudly displayed to make your expertise apparent to anyone who visits your website or office. 

Become a Certified Taxpayer Representative

The Tax Resolution Academy® serves as a community and resource hub aimed at helping members build and grow successful tax resolution practices. 

Members of the Tax Resolution Academy® have access to a wide range of resources, including live and on-demand Continuing Professional Education (CPE) webinars, marketing materials, practice management tools, and technical guidance on tax resolution cases (Collections and Exam). 

Additionally, the Academy provides opportunities for professional development, such as earning the Certified Taxpayer Representative™ (CTR™) designation. It is a collaborative environment where professionals can engage in discussions, share insights, and learn from one another to enhance their practices.

Network with Colleagues to Give and Receive Referrals

Networking with colleagues offers significant advantages for your tax resolution practice, including the opportunity to give and receive referrals. Professional networks often sponsor continuing education events to help members stay informed about the latest tax laws and industry developments. These gatherings also serve as a forum for exchanging insights, discussing emerging trends, and sharing best practices, all of which help you remain competitive in a fast-evolving industry.

One of the biggest benefits of active participation in professional organizations is access to a robust referral network, which is essential for expanding your practice. By building relationships with fellow Enrolled Agents (EAs) and accounting professionals in related fields, you establish yourself as a reliable resource within the community. This networking often leads to referrals that can expand your client base and increase your revenue.

Engaging with colleagues about creative marketing partnerships and other mutually beneficial ventures is another way to leverage your network. For example, you might meet an attorney who specializes in tax controversies. You can refer clients needing civil representation to them, and they can refer clients in need of expert tax preparation and IRS representation to you.

How Do I Become an IRS Enrolled Agent?

Are you considering becoming an IRS Enrolled Agent (EA) and wondering how to become an IRS Enrolled Agent? The first thing you need to do is to obtain a Preparer Tax Identification Number (PTIN). This is a unique identifier issued by the IRS to tax return preparers for use on tax returns instead of their Social Security Number.

Once you have a PTIN, the most common path is to take and pass the Special Enrollment Examination (SEE), a 3-part test that measures knowledge and understanding of the tax code and related regulations. Former IRS employees who have worked for the IRS for at least five years in a role that regularly applied and interpreted the provisions of the Internal Revenue Code can become EAs without taking the SEE.

After passing the SEE or qualifying through IRS experience, candidates must apply for enrollment to practice before the IRS. You’ll have to file IRS Form 23, pay a fee ($140 at the time of writing), and undergo a background check, including a review of your tax history. 

Earn More in Fewer Hours with IRS Solutions

IRS Solutions is easy-to-use, effective tax resolution software developed by tax pros for tax pros. We’ll get you up and running with quick migration of your existing data, so that you can get to work leveraging our full suite of helpful features, including automatic bulk transcript downloads, case analysis and solution recommendations, secure client portal, bankruptcy discharge date calculator, easy-fill form library, and custom marketing toolkit.

Our latest improvement, IRS Advance Notice™ (IAN), peers into the IRS system 24/7 and automatically alerts you to changes on your client transcripts including impending audits and passport seizures. With IAN on board, you can transition tax prep and tax resolution clients to annual monitoring programs for steady year-round income. Just imagine how grateful your clients will be when you let them know about a problem months in advance and work with them to prepare a defense!

Our friendly, knowledgeable staff is always available to answer your calls during work hours. And that PTIN renewal requirement we discussed above? Online continuing education sessions are included free of charge with every IRS Solutions membership.

Ready to get started growing your IRS Enrolled Agent tax practice? IRS Solutions is a tax pro’s best friend. Contact us to book a demo today.