2022 EA Exam Guide (Digital Version)

[Audio] ENROLLED AGENT EXAM GUIDE A S Y S T E M F O R S U C C E S S 2022 EDITION.

[Audio] ENROLLED AGENT Copyright © 2022 by Gleim Publications, Inc. Portions of this manuscript are taken from previous editions of How to Pass the EA Exam: A System for Success copyright © 1981- 2016 and Enrolled Agent Exam Guide copyright © 2017- 2021 by Gleim Publications, Inc. First Printing: February 2022 ALL RIGHTS RESERVED. No part of this material should be reproduced in any form whatsoever without express written permission from Gleim Publications, Inc. Reward is offered for information exposing violators. Contact copyright@gleim.com. More EAs have used Gleim to pass the EA exam than any other review course or provider. Gleim is the preferred EA review provider of the National Association of Tax Professionals ( NATP). EXAM GUIDE A System for Success.

[Audio] Welcome to the Gleim EA Exam Guide Our founder Dr. Gleim believed that a system for exam success starts with knowledge. This exam guide provides the knowledge you need to have a solid study process and exam strategy so you are prepared and confident on exam day. The Gleim EA Exam Guide: A System for Success provides you with everything you need to know about the exam including the reasons to become an EA, exam requirements, updates, question types, study tips, testing strategies, and more—all in one easy-to-access place. For nearly 50 years, our system has remained simple: master the testable topics and teach candidates what to expect on exam day, so when candidates sit for the EA exam, they feel confident and in control. While a lot has changed over the years, we have remained true to our customer-first mission, which is to provide innovative and high-quality products to help candidates pass the EA exam the first time. As the exam and industry have evolved, so has Gleim while ensuring candidates have the most up-to-date and relevant materials with a proven study path to success. Our award-winning customer service proves our commitment to you and your success. You'll rest easy the night before your test knowing that the Gleim System for Success is the most trusted EA review course on the market. We wish you all the best throughout your EA journey, from passing the exam to having a successful and rewarding career. As Dr. Gleim would say, onward and upward! ACKNOWLEDGMENTS The publications and online services of Gleim Publications and Gleim Internet are designed to provide accurate and authoritative information with regard to the subject matter covered. They are sold with the understanding that Gleim Publications and Gleim Internet, and their respective licensors, are not engaged in rendering legal, accounting, tax, or other professional advice or services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. You assume all responsibilities and obligations with respect to the selection of the particular publication or online services to achieve your intended results. You assume all responsibilities and obligations with respect to any decisions or advice made or given as a result of the use or application of your selected publication or online services or any content retrieved therefrom, including those to any third party, for the content, accuracy, and review of such results. Who Is This Guide for? If you are an accountant who is not a CPA or an attorney, you should consider becoming an EA. If you are a CPA or an attorney and wish to specifically advertise your tax expertise, you should consider becoming an EA. Any EA candidate in need of exam strategies and processes on the way to becoming an EA.    A System for Success.

[Audio] TABLE OF CONTENTS 01 06 04 14 26 02 03 Basics of the EA Exam PREFACE: WHY BECOME AN EA? Preparing for the EA Exam Sitting for the EA Exam & Beyond Everything you need to know about the exam, including testable content, pass rates, and how to apply. Practical, proven study advice and a close look at the questions you'll see on the EA exam. Exam day tips, receiving your score report, requirements for practicing before the IRS, and more!.

[Audio] Why Become an EA? Earning the EA designation will Enrolled agents are professionals who have demonstrated special competence in tax matters and professional ethics and are authorized to practice before the IRS as taxpayers' agents or legal representatives. " Practice before the IRS" includes all matters connected with presentations to the IRS relating to a client's rights, privileges, and liabilities under laws and regulations administered by the IRS. Give you opportunities to move forward in your career Increase your earning potential by 10% on average Expand your customer base Bring in more customers during the off-season Earn the respect of your peers Show that you are willing to invest in your professional development Establish your expertise and improve your accounting knowledge and skill Help you build confidence in your abilities 4.

[Audio] This excerpt from a chart produced by the National Association of Tax Professionals ( NATP) breaks down the rights you'll have when you become an EA: Provide missing information Call about processing Receive notices/ copies Respond about math errors and preparation Argue tax law Disagree with the IRS on behalf of a taxpayer on a tax return anyone prepared Speak with the IRS in an audit of a tax return anyone prepared Communicate with an IRS Collections Officer on behalf of a taxpayer Handle appeals on behalf of a taxpayer              Becoming an EA is a great way to signal to your clients that you're committed to meeting their needs. EAs have unlimited representation rights. Without an EA credential, a tax preparer is only able to represent clients whose tax returns they have prepared and signed. In contrast, EAs can represent their clients before the IRS on any matter, including audits and appeals. In short, EAs act as agents of taxpayers faced with matters involving income taxes, estate and gift taxes, employment taxes, and excise taxes. Enrolled agents report high job satisfaction and higher than average income than tax preparers without a designation. Everyone who works with federal tax returns should aspire to become an enrolled agent, and the Gleim Premium EA Review System makes it possible for most tax professionals and paraprofessionals to pass all three parts of the EA exam in one year. Become knowledgeable about the EA exam Obtain or renew your PTIN (more on page 12) Schedule your exam Prepare your study schedule Study for the exam Take the exam The Steps to Becoming an EA 1 2 3 4 5 6 No Designation EA GLEIM EA REVIEW • Preface 5.

[Audio] The enrolled agent ( EA) exam is the most common name for the Special Enrollment Exam (SEE), which has been administered by the IRS since 1959. The IRS contracts with Prometric to develop and administer the EA exam, the passing of which is required in order to practice before the IRS for persons other than attorneys and certified public accountants ( CPAs). The EA designation is a mark of distinction among tax professionals. Gleim partners with and supports many professional associations that help further the enrolled agent designation and the field of tax. We recommend that tax professionals join one or more of these associations, as they encourage members to network with peers, develop professional contacts, and stay informed about current issues and practices in tax. Basics of the EA Exam Professional Associations and Groups The LTP mission is to provide knowledge, professionalism, and community to preparers who serve the Latino taxpayer. They do this by providing the only tax training available in both English and Spanish. Their courses are designed for tax professionals who serve Spanish-speaking clients and need Spanish-speaking tax preparers. Become a member today by going to latinotaxpro.com/pages/vip. Latino Tax Pro ( LTP) EXAM ADMINISTERED SINCE 1959 6.

[Audio] Other Professional Tax Associations include, but are not limited to, the National Association of Enrolled Agents ( NAEA) and National Society of Tax Professionals ( NSTP). The National Association of Tax Professionals ( NATP) is the largest association dedicated to equipping tax professionals with the resources, connections, and education they need to provide the highest level of service to their clients. NATP is comprised of more than 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise, and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers. National Association of Tax Professionals (NATP) There are no particular education or experience requirements for the exam. However, candidates should be proficient in answering income tax accounting questions at an intermediate college course level. See page 16 for more information about the types of questions that appear on the EA exam. Pass all 3 parts of the EA exam within 2 years.* All paid tax return preparers must have a Preparer Tax Identification Number ( PTIN) renewed within the last year to register for the exam. Information on acquiring and renewing a PTIN can be found on page 12. Pass a suitability check. This includes both a tax compliance check (to ensure that no outstanding tax liabilities are owed and necessary tax returns have been filed) and a criminal background check. To maintain your designation, you will be required to complete 2 hours of ethics continuing professional education each year after you pass. More information on maintaining your EA designation can be found on page 30. EDUCATION AND EXPERIENCE EXAMINATION ETHICS IRS Requirements to Become Certified *Due to the pandemic, the IRS extended the carryover period of candidates with credit that had not expired as of February 29, 2020, by 1 year. Candidates who passed a part of the EA exam on or before February 29, 2020, have 3 years from the date they passed their first part to pass any remaining parts.  Gleim is a preferred EA review provider of the NATP. We encourage you to experience the benefits and support that come with an NATP membership when you join at natptax.com/eagoals. GLEIM EA REVIEW • Basics of the EA Exam 7.

[Audio] The IRS selected Prometric to develop and administer the EA exam. To do so, Prometric conducted a survey of active enrolled agents to determine the common tasks they perform and the knowledge required to perform those tasks. The Exam Content Outlines ( ECOs) and test questions were developed based on the survey's findings. Each year, some changes should be expected from prior examinations as emphases shift based on subsequent findings and as tax laws are passed or repealed. Each testing period starts on May 1 and ends the following February. Each testing year's EA exam covers the tax law in effect the previous December 31. For example, the May 1, 2022 - February 28, 2023, testing window tests tax law in effect December 31, 2021. Our accounting and tax experts work to ensure each new edition thoroughly covers all applicable tax laws tested beginning May 1. The EA exam consists of three distinct parts, with 3.5 hours of testing time for each part ( 4.25 hours total seat time including the tutorial and survey). Each exam part contains 100 multiple-choice questions ( MCQs) and covers a wide range of taxation topics. There is an optional 15-minute break after the first 50 questions. Page 23 has more information about progressing through each section of the exam. Exam Format The EA Exam Part 1 Part 2 Individuals Businesses Representation, Practices and Procedures Part 3 3.5 HOURS EACH 100 MCQs EACH BASICS OF THE EA EXAM 8.

[Audio] The questions on the exam test candidates' ability to complete and file forms and tax returns, as well as represent taxpayers before the IRS. The exam covers federal taxation; tax accounting; and the use of tax return forms for individuals, partnerships, corporations, trusts, estates, and gifts. It also covers ethical considerations and procedural requirements. Below are the main sections of each part of the exam and the approximate number of questions within each section. Questions in each exam part are randomized. Subject Matter Tested PART 2 Businesses (100 questions, including 15 experimental questions) Section 1: Business Entities and Considerations 30 Questions Section 2: Business Tax Preparation 37 Questions 18 Questions Section 3: Specialized Returns and Taxpayers PART 3 Representation, Practices and Procedures ( 100 questions, including 15 experimental questions) Section 1: Practices and Procedures 26 Questions Section 2: Representation before the IRS 25 Questions 20 Questions 14 Questions Section 3: Specific Areas of Representation Section 4: Filing Process PART 1 Individuals (100 questions, including 15 experimental questions) Section 1: Preliminary Work with Taxpayer Data 14 Questions Section 2: Income and Assets 17 Questions 17 Questions 15 Questions 11 Questions Section 3: Deductions and Credits Section 4: Taxation Section 5: Advising the Individual Taxpayer The exam breakdowns above reflect the Exam Content Outlines released by the IRS in January 2021, but are subject to change. Gleim will update this material if any changes occur. 11 Questions Section 6: Specialized Returns for Individuals GLEIM EA REVIEW • Basics of the EA Exam 9.

[Audio] Which Tax Laws are Tested? A Passing Score Grading The 2021 test window begins May 1, 2022, and is offered continuously through February 28, 2023. Because exams may contain experimental questions, scaled scores are determined by dividing the number of correctly-answered questions from the total number of questions in the exam and then converting the result to a scale that ranges from 40 to 130. Exam scores are confidential and revealed only to the candidate and the IRS. You will receive your result on screen at the end of the exam and be given a printed report before leaving your test site. The IRS sets the scaled passing score at 105 (approximately 70%), which corresponds to the minimum level of knowledge deemed acceptable by professionals practicing before the IRS. May 1, 2022 – February 28, 2023 EA exam tests 2021 tax laws Important 2022 Exam Dates  Gleim monitors all changes the IRS makes to the exam and continually updates materials at the appropriate time for candidates to prepare. Check gleim.com/EAblog for updates!  BASICS OF THE EA EXAM 10.

[Audio] EA Exam Pass Rates EA Exam Costs There are three fees you must pay to take the EA exam: That adds up to $ 711.95 before factoring in review materials. It isn't cheap, but it is more accessible than a certification like the CPA, which costs about $ 1,000 in fees and has much more stringent requirements before you're allowed to test. But think of exam costs as an investment. Investing in yourself is one of the greatest things you can do with your time and money. Think about what you want out of your career and what kind of investment your current circumstances will allow you to make. CPAs do tend to make more in lifetime earnings, but due to reduced requirements to take the exam, becoming an EA will allow you to experience the benefits of a certification sooner. Becoming an EA can help you advertise tax expertise as you work toward other certifications, like the CPA. Certification costs can add up, but know that all certified professionals report higher average earnings and better career growth.    Part 1: Individuals Part 2: Businesses Part 3: Representation, Practices and Procedures 61[break]% 66[break]% 70[break]% 72[break]% 81[break]% 82[break]% 2019- 2020 2020- 2021 Part Scheduling Fee (each part) US $ 203 US $ 67 US $ 35.95 Enrollment to Practice before the IRS Application Fee Preparer Tax Identification Number ( PTIN) Fee* *This includes a fee of $ 21 plus a $ 14.95 third-party processing fee for a total of $35.95. Note that this is not a one-time fee. This amount is the annual PTIN renewal fee. 62[break]% 69[break]% 86[break]% 2018-2019.

[Audio] Signing Up for the EA Exam There are three steps you must follow, in order, before you can take the EA exam: Obtain or renew your Preparer Tax Identification Number ( PTIN) Complete and file Form 2587 (can be done online at prometric.com/irs) Schedule an exam part with Prometric 01 02 03   Preparer Tax Identification Number (PTIN) Form 2587 Schedule with Prometric To obtain a PTIN, you must complete Form W- 12 online or by mail. Gleim recommends online because it provides you with a PTIN instantly. As of July 2020, the IRS has reinstated the fee to obtain and renew PTINs. The required fee is $ 21 plus a $ 14.95 third-party processing fee for a total of $ 35.95. You must have your PTIN to complete this step. In lieu of filing a physical Form 2587, Gleim recommends you create your Prometric user profile at prometric.com/irs and follow the instructions there for filling out the required information. You must have filed Form 2587 or filled out the required information on Prometric's website to complete this step. Go to prometric.com/irs and click the " Schedule Your Exam" link, then follow the prompts. 01 02 03 1. Go to irs.gov/ptin 2. Create your account 3. Complete the application for a new PTIN A Prometric user profile is required to schedule and sit for the exam, so completing this step online saves time. If you need to change the date, time, or location of your exam, you must contact Prometric. There is no fee if you reschedule at least 30 days before your appointment date. If you reschedule or cancel 5 to 29 days prior to your appointment, there is a $ 35 fee. You must pay another full $ 203 fee if you reschedule within 4 days of your appointment.  Rescheduling or Canceling Your Appointment The $203 testing fee for each part of the examination is due at the time the examination is scheduled. You will be provided a number confirming your appointment. You will need this number to reschedule, cancel, or otherwise change your appointment. BASICS OF THE EA EXAM 12.

[Audio] Register for an exam part early to give yourself more flexibility when scheduling with Prometric. Prometric testing centers administer many different exams, and testing centers can become booked up. The sooner you register and schedule your appointment, the more likely you are to get a convenient appointment time at the nearest testing center. All three exam parts do not have to be taken or scheduled during the same test window, and candidates can sit for examination parts up to four times each during a test window. That said, we recommend candidates try to pass all three exam parts within one year and pass each part the first time. This is an attainable goal for most tax professionals. The next section will show you how. When and Where to Take the Exam For US-based* candidates, Prometric offers the EA exam continuously during each annual testing window from May 1 to the end of February the following year. The EA exam is not offered during the blackout months of March and April to give the IRS and Prometric time to update the exam for a new year of tax laws. *International testing dates and locations are available at prometric.com/irs. These dates and locations are subject to change so check there for up-to-date information. GLEIM EA REVIEW • Basics of the EA Exam 13.

[Audio] Preparing for the EA Exam Develop Your Study Plan Your goal is to pass each part of the EA exam the first time you sit. To do so, you should develop an approach that best suits your needs and individual preferences. Different people are able to study for different amounts of time per week. How quickly you will be able to prepare depends on your personal circumstances. Be realistic about what you can expect from yourself and make a plan you will be able to keep. If you identify a weakness, tailor your study plan accordingly. You won't have to spend the same amount of time on every topic. All candidates should be able to pass all three parts within one year if they are able to prioritize studying. How familiar am I with the material? When were my last accounting classes? How much experience do I have with individual and/or business taxes? How much time do I have available to study? How long can I concentrate in one sitting?       Ask Yourself These Questions: 14.

[Audio] Success on the EA exam requires a systematic approach to your preparations and exam-day strategy. With Gleim, it's as simple as following the steps below when preparing for the EA exam—guaranteed!* Gleim EA features the most comprehensive coverage of exam content using proven techniques and innovative new technology to help you study smart. Gleim EA Review features our proprietary, groundbreaking SmartAdapt technology and highly rated Gleim Instruct video series. Step 2: Study Identified Areas Step 3: Master the IRS Exam Content Outlines Step 4: Complete Your Final Review *The Gleim Premium Review System includes our no-hassle Access Until You Pass® guarantee. Learn the concepts SmartAdapt has identified for you by studying recommended outlines and/or watching selections of our highly acclaimed Gleim Instruct videos. This will ensure you master the knowledge required. Practice and perfect your EA question-answering techniques by taking a series of adaptive multiple-choice questions. SmartAdapt tests your understanding of exam topics through customized quizzes. Answering exam questions followed by analyzing the answer explanations allows you to develop a deeper understanding of tested topics for better results. After completing all study units, take the Gleim Mock Exam, a full-length practice exam. Premium users have two Mock Exams and Traditional users have one. If you are a Premium user, take your second Mock Exam a couple days before your actual exam. The course evaluates your exam results and walks you through a Final Review mode just before you sit for your exam. Based on the experience of our customers who have taken all three parts of the exam, Gleim recommends that candidates sit for Parts 1 and 2 before taking Part 3. Feedback indicates that Part 3 candidates should be knowledgeable about topics covered in Parts 1 and 2 as they relate to the topics that Part 3 tests. Which Order Should I Take the Exam Parts in? Step 1: Create a Baseline Discover your strengths and weaknesses by taking a Diagnostic Quiz. Our SmartAdapt technology analyzes your results and creates a baseline to guide you through your studies, so you can learn more efficiently. The Gleim EA Review System with SmartAdapt™ Technology GLEIM EA REVIEW • Preparing for the EA Exam 15.

[Audio] Multiple-Choice Questions Average Study Time When and Where to Study You should study when and where you study best. The exam center is very quiet, so candidates should complete practice exams in a similar environment. Find study areas that are calm, well-lit, and distraction-free, and schedule your study time for when you are most productive and able to focus. If you're a morning person, don't expect to get your best studying done into the late hours of the night. Make EA review your top priority until you've passed the exam. Gleim EA Review makes it easy to study anywhere. Access your course on your phone, tablet, or laptop. Look for nearby libraries, hotels, coffee shops, and restaurants that have free wifi, a good ambiance, and comfortable chairs. If your commute is long or you use public transportation, consider spending that time listening to audio lectures. At minimum, you should plan on spending at least 10 hours per week studying. There are three different types of EA exam Multiple-Choice Questions ( MCQs), but, at the most basic level, each question consists of three parts: You will have 3.5 hours to complete 100 MCQs on each exam part, and you could see any combination of the three different MCQ types we describe on page 17. With this as a baseline, most candidates should be able to prepare for and pass a part of the EA exam within 2 or 3 months and all 3 parts within 1 year. Gleim has developed a Study Planner (available through the Gleim EA Review Course) to allow you to personalize your study schedule based on your commitments, limitations, etc. It's important to set attainable goals, and the Study Planner can help. It's easy to feel overwhelmed by everything in front of you, but breaking your exam preparation into manageable blocks makes passing simple. Just take it one step at a time. Have an idea of how much you want to accomplish each week during your study sessions and hold yourself to that goal. Speak to a Gleim Personal Counselor for assistance in staying on track. Call ( 800) 874- 5346, ext. 498, or email PersonalCounselor@gleim.com. PART 1  80- 90 HOURS  7- 9 WEEKS PART 2 PART 3   10- 12 WEEKS 4- 6 WEEKS   110- 120 HOURS 45- 55 HOURS Take Advantage of the Gleim Study Planner THE QUESTION STEM: The question stem includes the question, details necessary for answering the question, and extraneous information. THE BEST ANSWER CHOICE: The correct answer is the best possible answer choice of the four answer choices provided. THE DISTRACTORS: The remaining three answer choices are designed to distract you by seeming plausible. PREPARING FOR THE EA EXAM 16.

[Audio] Direct Questions Incomplete Sentences Negative Questions This is the type of MCQ most candidates will be familiar with, and it's the most common type of question on the EA exam. Direct questions are straightforward and present four singlestatement answer choices. Choose the response that best answers the question. This MCQ requires you to select the answer that best completes the statement. Sometimes MCQs include negative phrasing with the words EXCEPT or NOT in all caps. Pay special attention when you see negative words. If you're moving through the questions quickly, it can be easy to gloss over what the question is actually asking. Remember, select the answer that is NOT like the others. 01 02 03 GLEIM EA REVIEW • Preparing for the EA Exam 17.

[Audio] Multiple-Choice Answering Techniques A solid multiple-choice answering technique will help you maximize your score on each part of the EA exam. Remember, knowing how to take the exam and answer individual questions is just as important as studying the subject matter tested on the exam. This will reduce stress and the number of surprises you experience on exam day. This is usually the last sentence of the question stem. Use the question to decide what information in the stem is essential and what is extraneous. Even if the first answer appears to be the correct choice, do not skip the remaining answer choices. Questions often ask for the "best" of the choices provided. Treat each answer choice as a true/false question as you analyze it. In computational items, distractors are carefully calculated such that they are the result of making common mistakes. Be careful, and double-check your computations if time permits. You should have an idea of what the best answer will be before you see it. Work Through the Question Systematically. Start by reading the sentence that is actually asking the question. Read the answer choices carefully. Determine the best available answer.    01 02 03 PREPARING FOR THE EA EXAM 18.

[Audio] Do not agonize over any one item. If you encounter an EA exam question that is ambiguous or unfamiliar, make an educated guess. Educated guessing involves three steps: You have a 25% chance of answering the question correctly by blindly guessing. For many multiple-choice questions, one or two answer choices can be eliminated with minimal effort, which increases your odds of getting the answer right considerably. Then, once you've made your guess, flag that question and move on. You can return to the question during your review, but you should not waste time agonizing over your best guess before you've answered all of the exam questions. When you review, unless you made an obvious mistake or computational error, try to avoid changing the answer at the last minute. Your first guess is usually the most intuitive. Using the Gleim EA Review Course, you will get plenty of practice perfecting educated guessing. This is one of the reasons we ask you to complete a quiz before you review the material. During your study sessions, read the answer explanations for all of the questions so you can see the results of your guess and get the information you need to avoid guessing next time. Rule out easily identifiable distractors. Speculate on the rationale behind the question. Ask yourself, "What does the IRS want me to know?" or "Why does the IRS want to test this?" Select the best answer or your best guess between two equally appealing options. Make an Educated Guess. 01 02 03.

[Audio] Learning from questions you answer incorrectly is very important. Each question you answer incorrectly during your practice quizzes is an opportunity to avoid missing actual test questions on your EA exam. Carefully study the answer explanations provided until you understand why the original answer you chose is wrong, as well as why the correct answer is right. You should even do this for questions where you made an educated guess. This will help inform your intuition for future questions and sharpen that skill before exam day. There are seven errors that test-takers commonly make. The first six errors can be fixed by practicing working through the questions systematically and keeping calm on test day. The seventh is just a matter of giving yourself enough time to learn the material. But all of these potential pitfalls can be fixed before you sit for the exam. Making a conscious effort to learn from your mistakes while studying is the difference between passing and failing for many EA candidates. Learn from Your Mistakes. SEVEN COMMON ERRORS Misreading the question stem Not understanding what is required Making a math error Applying the wrong rule or concept Being distracted by one or more of the answers Eliminating answers from consideration too hastily Not knowing the topic tested        Your score is based on the number of questions you answer correctly. You are not penalized for answering a question wrong, which is why you don't want to leave a question unanswered and why we recommend educated guessing. Remember to click the " Flag" button at the bottom of your screen for every question you guess on and plan on returning to later if time allows. If you cannot rule out options to make an educated guess, pick the most intuitive answer. Your gut is usually correct, and you have just increased your chances of earning points from 0% (leaving it unanswered) to 25% by making an intuitive guess. Never Leave a Question Unanswered. PREPARING FOR THE EA EXAM 20.

[Audio] Each part of the EA exam consists of 100 multiple-choice questions to be answered in 3 hours and 30 minutes. The exam is broken into 2 sections of 50 questions each. There is an optional 15-minute break once you complete the first 50 questions. These 15 minutes are not counted toward your 3 hours and 30 minutes of testing time. If you complete your 100 multiple-choice questions by allocating 1.5 to 2 minutes per question, you will have 5- 30 minutes per section ( 10- 60 minutes total) for review. By perfecting your question-answering technique and systematically preparing for EA topics, you will have all the confidence you need on exam day to maximize points on every question. We cover time management in more detail on page 24. Follow a Time Management System. GLEIM EA REVIEW • Preparing for the EA Exam 21.

[Audio] 3 Below is an emulation of what you can expect to see when you take the EA exam (based on Prometric's SEE Tutorial). Gleim strongly suggests that you access and work your way through the entirety of the tutorial. Become familiar with the calculator, methods of navigation, review screen, etc. Doing so, along with using the Prometric-emulating screens in the online components of the Gleim Premium EA Review System, will put you completely at ease with the exam environment on test day–so much so you may feel like you are still comfortably practicing at home. Toolbar Icons and Navigation 1 2 4 9 5 6 7 8 PREPARING FOR THE EA EXAM 22.

[Audio] Displays the question number (out of 100) you are currently viewing and the title of the current section. The sections of the exam are listed in the table below: Indicates time remaining in the section. When clicked, reveals the time remaining in the overall exam. During the exam, try to stick to your time budget of 1.5 minutes per question. Tracks how far along you are in the exam and shows the percentage of questions answered. To select an answer, click the box that contains it. Once clicked, the box will be highlighted. To change your answer, simply click a different box. Click this button to flag any question you wish to return to later. Keep these to a minimum while doing practice exams and on the real EA exam to maintain your time budget. Click this button to move to the previous question (backward). Click this button to move to the next question (forward). A numbered list where you can track your position in the exam questions at a glance. Gleim recommends answering the questions sequentially, but you can use these numbers to navigate the questions. Use this grid to travel directly to a question or filter questions by unattempted, attempted, or flagged. 1. Question Number and Section 2. Section Time Remaining 3. Progress Bar 4. Answer Choices 5. Flag 6. Back 7. Next 8. Question Numbers 9. Section Review An on-screen calculator will be accessible through the Prometric interface. It performs basic arithmetic such as addition, subtraction, multiplication, and division, and will be sufficient for the questions you will encounter on the exam. Calculator If you would like even more detail about the test-taking experience, access Prometric's Free SEE Tutorial at prometric.com/irs and click the "SEE Tutorial" link under the "Prepare for your Exam" section. Gleim EA Review emulates the exam environment to reduce candidates' test anxiety. When you get to the exam center, you will be so familiar with the format that you will feel right at home!  *The EA exam will not limit the time spent in either section, but you should divide your time between sections equally. Exam overview and tutorial Break policy Exam section 1 Optional break Exam section 2 13 1 50 1 50 9 min. 2 min. 1 hr., 45 min.* 15 min. Number of Screens Section Allotted Time Survey Conclusion 10 1 7 min. 2 min. 1 hr., 45 min.* GLEIM EA REVIEW • Preparing for the EA Exam 23.

[Audio] The Gleim Time Management System Managing your time well is critical to passing the EA exam. The only information you get during your exam is a clock providing the hours, minutes, and seconds remaining. There will be no guidance for breaks or time allocation within each section. You must budget your time so you can complete 100 multiple-choice questions in 3.5 hours. The key to success is becoming proficient in answering multiple-choice questions at a rate of 1.5-2 minutes per question. This will leave you 10- 60 minutes total to review. The exam is broken into two halves of 50 questions separated by an optional break. Once you submit your first 50 questions, you will choose to either take an optional 15-minute break or begin the next 50 questions. Be sure to check your work before submitting your answers. Once you submit your responses, you will not be able to return to them. If you need to use the restroom, stretch, etc., the 15-minute break is the time to do so. Make sure you don't exceed your 15 minutes. The exam clock will resume after 15 minutes no matter what! If you don't feel you need a break, you can choose to resume the test and keep your momentum. You should only spend 2+ minutes on the most difficult questions, and you shouldn't spend a full 90 seconds on a question if you're already sure of your answer. The 1.5 minutes per question pace should be your target average over the course of your practice quizzes and exams. The more questions you answer at a 1.5-minute pace, the more time you will have to review. Use one page of scratch paper (provided at Prometric) for your Gleim Time Management System at the exam. As soon as the exam starts, write 1, 21, 41, etc., in a column to the left followed by 3:30, 3:00, 2:30, etc., respectively in a column to the right. It should look like this: As you complete each set of questions, note when you finish, and then start the next set. This will help you gauge your pace and ensure you finish with enough time left to review the questions you flagged. QUESTION 1 QUESTION 51 QUESTION 21 QUESTION 71 1ST REVIEW (complete after question 50) 2ND REVIEW QUESTION 41 QUESTION 91 BREAK ( clock stops) 3: 30 1:45 3: 00 1: 15 2:15 0:30 2:30 0:45 1: 45*          Time Budget for the Exam *You should aim to start your break at the midway point (1 hour 45 minutes), meaning you need to finish the first 50 questions and review your answer choices to those questions by the time the clock hits 1:45. Once your break starts, the exam clock will pause. It will automatically resume after 15 minutes or when you choose to continue the exam, whichever is earlier. PREPARING FOR THE EA EXAM 24.

[Audio] Study Your Exam Site Location A few weeks before you sit for your exam, take some time to become familiar with your exam site. Prometric testing centers vary in how they are operated. You will be more confident on exam day if you know what to expect at the testing center. One way to become familiar with your chosen test site is to do a Prometric Test Drive ( register for free via prometric.com/irs) sometime before your first section. A Test Drive is a 30-minute, real-world, endto-end practice run at Prometric. You will not receive real EA exam questions, but you will be able to experience locating your test site, checking in, and running through a generic sample test. NOTE: The Test Drive should not be used as a replacement for Prometric's Free SEE Tutorial or the Gleim Exam Rehearsal, which is part of the Gleim Premium EA Review System. We use short practice exams because they are of sufficient length for a work session but are not too long. Since we have been helping candidates pass certification exams since 1974, we can say with confidence that our years of experience have proven that these short practice exams work. You will have no trouble budgeting your time on the EA exam after extensive practice exams. Each practice exam should be completed budgeting 1.5 minutes per question ( plus 10 minutes for review) under exam conditions. Practice marking questions you wish to return to, but select the best answer for each question on your first pass. Act as if each practice exam is being performed on test day! Practice Makes Perfect! Any extra time you build into your overall budget should be used wisely. Ultimately, you want to make full use of all time available. No matter how much extra time you have left, use it wisely and use it all; don't leave the testing center early.  Time Management Advice GLEIM EA REVIEW • Preparing for the EA Exam 25.

[Audio] Sitting for the EA Exam & Beyond The Day of Your EA Exam Arrive at the testing site about 30- 60 minutes ahead of your appointment time. Bring snacks, drinks, etc., to the testing site. You will have to leave these items in a locker or a designated area. Wear comfortable clothing. Dos Don'ts    Bring study materials to the testing site. Bring coats or umbrellas to the testing site. Wear excessive clothing. You will not be allowed to remove any outerwear once you are in the testing room.    The Gleim Mock Exam is designed to emulate the EA test-taking experience at Prometric. This timed and scored exam assesses you not only on the content you have studied, but also on the questionanswering and time management techniques you have learned throughout the Gleim study process. When you have completed your Mock Exam, our SmartAdapt technology will evaluate your results and walk you through a Final Review mode just before you sit for your exam.  Exam Rehearsal 26.

[Audio] ID Requirements Beginning the Exam  Once you are escorted to a workstation by test center staff, you must remain in your seat during the examination, except when authorized to get up and leave the testing room by test center staff. There will be candidates taking many different exams in the room with you (financial exams, medical exams, etc.). When you finish the examination, quietly leave the testing room, turn in your scratch paper, and sign the test center log book. The test center staff will dismiss you after completing all necessary procedures. For more information on Prometric regulations, accommodations, testing experience, etc., go to Prometric's website ( prometric.com). You must present a valid, nonexpired form of identification before you can test. The ID must Failure to provide valid ID at the time of the examination is considered a missed appointment. As a result, you forfeit your fees. For more information, contact Prometric (prometric.com). All Amish/ Mennonite examinees without proper identification must present a certified or notarized birth certificate. In addition to the birth certificate, the examinee must present any one of these identifications: If the names do not match, you will not be permitted to test unless you are able to provide an original, certified marriage certificate or an original, certified legal name change document. Photocopies will not be accepted. Be government-issued (e.g., driver's license, passport, state-issued identification card, or military identification card), Contain both a current photo and your signature (if it does not, you must present two identification cards: one with your photo and one with your signature), Closely resemble your appearance on the date of testing, and Have a first and last name that exactly matches the first and last name used to register for the examination (including designations such as Jr. and III). IRS Form 4029 (Must be signed by both IRS and SSA) A non-photo bearing, state-issued ID (as permitted by law) A Social Security Card        Flashcards It is always a good idea to get the wheels turning prior to sitting for an exam. Remember, you should not be studying or cramming on the day of your exam. Instead, just review a few flashcards with formulas or anything else you tend to have trouble recalling. This is an opportunity for you to visualize those items and begin to focus on the tested materials. Doing so will prevent a slow start at the beginning of your exam. Do not bring these to the testing center. 27 GLEIM EA REVIEW • Sitting for the EA Exam & Beyond.

[Audio] Computer Problems Nondisclosure Agreement Candidate Misconduct and Cheating There is about a 1% chance of experiencing a computer problem. The most common problem requires staff to reboot your computer. According to Prometric, you will lose a minute of testing time at most. If you have a computer problem, do not erase any messages on the screen or try to fix the system yourself. Stop, raise your hand, and tell the exam proctor. Note the time it occurred and when it is rectified. According to the Candidate Information Bulletin, you should report questions or concerns to Prometric. Please also let Gleim know about any issues by emailing EA@gleim.com. The EA exam is nondisclosed. The following is taken verbatim from the IRS's Candidate Information Bulletin dated 2019. It is reproduced here to remind all EA candidates about the IRS's strict policy of nondisclosure, which Gleim consistently supports and upholds. The following paragraph is taken verbatim from the IRS's Candidate Information Bulletin: Be sure to read your Candidate Information Bulletin so you know the guidelines regarding misconduct and items that are prohibited from the exam site. We value and depend on feedback from EAs and EA candidates to know how to improve our materials, with emphasis on topics to be strengthened and/or added specifically within our course. When you have completed the exam, please contact Gleim at gleim.com/feedbackEA with your suggestions, comments, and corrections. You can help the next batch of EA candidates prepare, and we want to know how well we prepared you for your testing experience. This exam is confidential and proprietary. It is made available to you, the examinee, solely for the purpose of assessing your proficiency level in the skill area referenced in the title of this exam. You are expressly prohibited from disclosing, publishing, reproducing, or transmitting this exam, in whole or in part, in any form or by any means, verbal or written, electronic or mechanical, for any purpose, without the prior express written permission of the IRS. The IRS takes candidate misconduct, including cheating, very seriously. If the IRS determines that a candidate is culpable of misconduct or has cheated, the candidate will be subject to a variety of penalties including, but not limited to, invalidation of test scores, disqualification from subsequent test administrations, and civil and criminal penalties. In cases where candidate misconduct or cheating is discovered after a candidate has obtained an Enrolled Agent card, the IRS may rescind the card. 28 SITTING FOR THE EA EXAM & BEYOND.

[Audio] Candidate Score Reports For a passing exam, the score report will only show a passing designation. It will not show a score. For a failing exam, the score report will show a scaled score between 40 and 104. In addition, diagnostic information detailing the section(s) in which the candidate needs improvement is provided. Many EA candidates do not pass all parts on their first attempt and have to take at least one part twice. Candidates who pass a part (or parts) of the examination can carry over passing scores for up to 2 years* from the exam date of the first exam part passed. Upon completion of your exam, a pass/fail message will appear on your computer screen. You will later receive an email from Prometric containing your score report. To print your score report from Prometric's website: Go to scorereports.prometric.com. Enter your full exam confirmation number. It must be 16 digits in length and include leading zeros, when applicable. Enter your last name. Click the " Validate Score Report" button. Click the green " Print Score Report" button. First, you should analyze your score by using the diagnostic information in your score report. Then, contact your Personal Counselor so we can help you get back on track with your studies and help you create a personalized revision plan.   If you receive a failing score 3 2 1 5 *Due to the pandemic, the IRS extended the carryover period of candidates with credit that had not expired as of February 29, 2020, by 1 year. Candidates who passed a part of the EA exam on or before February 29, 2020, have 3 years from the date they passed their first part to pass any remaining parts. 4 Level 1: Weak Additional study is necessary. It is important for you to focus on this area as you prepare to take the test again. You may want to consider taking a course or participating actively in a study group on this topic. Level 2: Marginal You need some additional study in this area. To maximize your score, prioritize weak areas, but don't neglect any topics where you received a marginal score. There are still points there. Level 3: Strong You clearly demonstrated an understanding of this subject area. Level of Proficiency Definitions.

[Audio] Enroll to Practice Before the IRS Maintain Your EA Credential Enjoy Your EA Benefits Within 1 year from the date of passing all parts of the exam, eligible persons who wish to be enrolled to practice before the IRS must complete and submit an application, Form 23, with a $67 application fee, in accordance with instructions on the form. Form 23 is available online at irs.gov/pub/irs-pdf/ f23. pdf. The IRS states, "our goal is to have this process completed within 90 days of receipt of your application." A higher earning potential and better career opportunities are yours once you attain your credential. Tell your Personal Counselor how you did, and let us know if there is a part of our system we can improve so we can help more candidates pass the EA exam on their first attempt. Enrolled agents must complete 72 hours of CE over the 3-year enrollment period (with a minimum of 16 hours per year) to remain active. This includes 2 hours of ethics or professional conduct per year. Gleim provides Premium users with free CE hours and a choice of any course from our tax catalog. After you pass your exam, you can access this feature in your Personal Classroom. Once you become an EA, you will have to renew your PTIN annually between mid-October and December 31. Simply go to irs.gov/ptin and follow the renewal steps displayed on screen. As of July 2020, the IRS has reinstated a fee to obtain and renew PTINs. The required fee is $ 21 plus a $ 14.95 third- party processing fee for a total of $ 35.95. Staying Enrolled Continuing Education (CE) Renewing Your PTIN After You Pass Congratulations! After you enroll, you'll be an official enrolled agent. The IRS requires EAs to renew enrollment status every 3 years. The application for renewal, Form 8554, is available on the IRS website at irs.gov/pub/irs-pdf/f8554.pdf. You can also go to pay.gov and type " 8554" in the search box. There is a $ 67 renewal fee. 30 SITTING FOR THE EA EXAM & BEYOND.

[Audio] Go to gleim.com/freeEAQs to try out a selection of MCQs from our exam-emulating test bank of EA questions. When you have completed the quiz, you will receive a score broken down by topic and have the option to review your answers. To see why Gleim is the preferred choice of EA exam candidates, try the Gleim EA Review Course for free at gleim.com/FreeEA. Enjoy access to our innovative SmartAdapt™ technology, watch our Gleim Instruct videos, and access the largest test bank of realistic, exam-quality questions. The Gleim Review System contains everything you need to pass, but some candidates may wish to refer to the Internal Revenue Code, Circular 230, IRS publications, and IRS tax forms and accompanying instructions, which can be found at irs.gov/forms-instructions. Some candidates also find irs.gov/taxtopics to have additional helpful information. Read about exam-day strategies and get professional development advice by following along on the Gleim Accounting Facebook, Twitter, and Instagram. EA Exam Questions Gleim EA Review Course Demo Gleim EA Blog IRS Study Material Stay Up-to-Date on EA Exam News and Tips! Free Exam Resources @GleimTax @GleimAccounting @GleimAccounting Go to gleim.com/EAblog for study tips, exam information, and professional advice. Follow us on social media and we'll let you know when the latest information goes live. Go to gleim.com/FreeEAWebinars for free webinars presented by our team of experts that range from exam topics to tips on how to prepare. They are designed to assist you on your path to becoming an enrolled agent. Gleim EA Webinars 31 GLEIM EA REVIEW • Sitting for the EA Exam & Beyond.

[Audio] To check your answer or to get a detailed walkthrough of this question, including explanations for both correct and incorrect answers, visit the free Gleim Instruct video at the link below: In the video, tax expert Nate Wadlinger— EA, CPA, attorney, and Lecturer in Taxation at Florida State University—covers the information needed to answer this multiple-choice question. He then provides an analysis of each answer choice, explaining exactly why each is correct or incorrect. Our EA review course is packed with more expert-led Gleim Instruct videos just like this one, which are designed to boost your comprehension and exam confidence! Gleim.com/EAMCQ In which of the following situations is no return required to be filed for 2020? A. Single, filing status single, under age 65, gross income $ 18,400. B. Married, joint filing status, both spouses under age 65, gross income $ 29,800. C. Single, filing status single, age 70, gross income $ 13,650. D. Married, separate filing status, age 65, gross income $ 10,000. Test Your Knowledge Ready for a pop quiz? See if you can answer the EA question below, which demonstrates how topics are tested on the EA exam.   32.

[Audio] GLEIM PUBLICATIONS, INC. PO Box 12848 Gainesville, FL 32604 GLEIM.COM/EASUCCESS 800. 874. 5346 EA REVIEW.