Plain-English definitions of the terms for Enrolled Agent study. Simplified for learning; the IRS’s materials are authoritative.
| Term | Definition |
|---|---|
| Enrolled Agent (EA) | A tax practitioner federally authorised to represent taxpayers before the IRS; the highest IRS credential. |
| SEE | Special Enrollment Examination, the three-part exam to become an EA. |
| Part 1 - Individuals | The SEE part covering individual income tax. |
| Part 2 - Businesses | The SEE part covering business entities and their tax; the broadest part. |
| Part 3 - Representation | The SEE part covering practice before the IRS, ethics and procedures. |
| PTIN | Preparer Tax Identification Number, required to prepare returns and to sit the SEE. |
| Circular 230 | The Treasury Department rules governing practice and ethics before the IRS. |
| Unlimited representation rights | The right to represent any taxpayer on any tax matter before any IRS office. |
| Form 23 | The application for enrollment to practise as an EA, filed after passing the SEE. |
| Form 8554 | The form used to renew enrollment every three years. |
| Enrollment cycle | The three-year period over which EAs renew and complete continuing education. |
| Continuing education (CPE) | 72 hours per three-year cycle (including 6 ethics hours) to keep EA status. |
| Scaled score | A converted score (200-800 scale); 500 is needed to pass each SEE part. |
| Carryover period | The three years for which a passed SEE part stays valid before enrollment. |
| Basis | The amount used to figure gain, loss or depreciation on property for tax. |
| Filing status | A taxpayer’s category (single, married filing jointly, etc.) that affects tax. |
| Circular 230 sanctions | Penalties (censure, suspension, disbarment) for breaching the practice rules. |
| Power of attorney | Authorisation (often Form 2848) letting a representative act for a taxpayer. |
| Examination (audit) | The IRS review of a return that an EA may represent the taxpayer through. |
| Appeals | The IRS process for disputing an examination result, where EAs can represent. |