An enrolled agent is a tax practitioner licensed by the federal government rather than by a state. The credential allows a person to represent taxpayers before the Internal Revenue Service on audits, collections, and appeals, with no limit on which taxpayers or tax matters they can handle. Because the IRS itself grants and polices this credential, the screening behind it looks different from a state licensing board check. There is no fingerprint card sent to a state police repository. Instead, the IRS runs what it calls a suitability check, built around two questions: does the applicant pay their own taxes, and does the applicant have a disqualifying criminal history. This article walks through how that review works, what can stop an application, what happens at renewal, and how accounting and tax firms layer their own screening on top of the federal process.
What an enrolled agent is and why the IRS screens them
According to the IRS, an enrolled agent “has earned the privilege of representing taxpayers before the Internal Revenue Service” by passing a three part exam or through qualifying experience as a former IRS employee, and the designation is the highest credential the IRS itself awards to tax practitioners. The IRS’s enrolled agent information page describes the privilege this way and notes that enrolled agents must adhere to ethical standards set out in Treasury Department Circular 230. Because an enrolled agent can sign powers of attorney, negotiate with IRS collections staff, and access a client’s full tax file, the government has an interest in confirming that the person holding the credential is not themselves delinquent on taxes or carrying a disqualifying criminal record before handing over that authority.
The two paths to becoming an enrolled agent
There are two routes into the credential. The first is the Special Enrollment Examination path, open to anyone who obtains a Preparer Tax Identification Number and then passes all three parts of the exam, covering individuals, businesses, and representation practices and procedures, administered through a third party testing vendor. The second route is available to certain former IRS employees who, based on past technical experience working with the tax code, are exempt from the exam requirement and can apply directly. Both paths converge at the same point: the applicant must file Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, pay the enrollment fee, and pass the suitability check described on that same IRS page.
What the suitability check actually reviews
The IRS’s own enrolled agent FAQ page states that the suitability review covers “tax compliance to ensure that you have filed all necessary tax returns and there are no outstanding tax liabilities; and criminal background.” See the IRS enrolled agents FAQ for the full statement. That single sentence captures the two pillars of the check.
On the tax compliance side, the IRS looks at the applicant’s own filing and payment history. An overdue return that has not been filed, or unpaid tax that has not been resolved through an acceptable payment arrangement such as an installment agreement, can weigh against the application. The logic is straightforward: a person asking for authority to represent other taxpayers’ tax matters is expected to be current on their own.
On the criminal background side, the FAQ page describes disqualification for “any criminal offense resulting in a felony conviction under federal tax laws or a felony conviction related to dishonesty or a breach of trust, that is less than ten years old.” That standard is narrower than a blanket criminal history bar. It is targeted at tax fraud type offenses and crimes involving dishonesty or breach of trust, such as fraud, embezzlement, or theft, and it carries a rolling ten year lookback rather than a lifetime bar. The IRS does not publish a request for a general criminal history report to a third party consumer reporting agency as part of the Form 23 process; the review is conducted internally against IRS records and the information the applicant discloses on the application.
The legal basis: Treasury Circular 230
The rules governing enrolled agents, including eligibility for enrollment, the application process, renewal, and standards of conduct, are codified in Treasury Department Circular 230, which is published as regulations at 31 CFR Part 10 on the Electronic Code of Federal Regulations. Part 10 sets out who may apply for enrollment, the grounds on which the IRS Office of Professional Responsibility can deny or revoke enrollment, and the separate standards of practice that apply once someone is enrolled, including the disreputable conduct provisions that can result in suspension or disbarment from practice before the IRS. The IRS also publishes a plain language Circular 230 resource page for practitioners, along with the Circular 230 publication itself, which lays out the duties and restrictions that apply to enrolled agents, attorneys, and CPAs who practice before the IRS.
The PTIN requirement
Before an applicant can sit for the Special Enrollment Examination or apply through the former employee route, the IRS requires a Preparer Tax Identification Number. The PTIN is a separate credential from enrollment itself and is required of anyone who prepares or helps prepare federal tax returns for compensation. The IRS PTIN requirements page explains who must obtain one, how to apply online, and the annual renewal window each fall. An enrolled agent keeps the PTIN active for the life of their practice, renewing it every year regardless of where they are in the three year enrollment cycle.
Renewal: the suitability check does not end at the first approval
Enrolled agent status is not a one time credential. The IRS page on maintaining enrolled agent status explains that renewal runs on a three year cycle tied to the last digit of the practitioner’s Social Security number, so roughly a third of all enrolled agents renew in any given cycle. Renewal is filed on Form 8554, available through Pay.gov or by paper. To renew, an enrolled agent must show a minimum of 72 hours of continuing education completed across the three year cycle, including at least 6 hours of ethics, with a yearly minimum of 16 hours including at least 2 hours of ethics each year. Because the renewal application asks the practitioner to again attest to their standing, a lapse in personal tax compliance or a new disqualifying conviction can surface again at this stage, which is why the suitability review is better understood as ongoing rather than a single gate at entry.
An enrolled agent who does not renew on time can lose the ability to practice before the IRS and may need to go through reinstatement procedures described on the same maintenance page. The IRS also publishes periodic enrolled agent news updates covering renewal cycle deadlines and continuing education reminders, and a current roster can be checked through the IRS’s verify the status of an enrolled agent lookup tool.
Suitability check versus a firm’s own background screening
The IRS suitability review answers a narrow federal question: is this person allowed to hold the enrolled agent credential. It does not function as a comprehensive pre employment background check, and it is not something an accounting or tax firm can rely on in place of its own hiring due diligence. A firm bringing on an enrolled agent, whether as a staff preparer, a controller level hire, or a partner, generally still runs its own screening, which may include criminal history searches in the jurisdictions where the candidate has lived, verification that the enrolled agent credential and PTIN are active, employment and reference checks, and in some firms a credit history review given the access enrolled agents have to client financial accounts and sensitive tax data. Firms that pull a credit report or criminal history report from a background screening company for employment purposes are subject to the Fair Credit Reporting Act, which requires a standalone disclosure, written authorization from the applicant, and, if the firm intends to take an adverse action based on the report, a pre adverse action notice, a reasonable opportunity to respond, and a final adverse action notice along with a copy of the report and a summary of rights. What a background check actually surfaces depends on state record availability and the lookback period the firm applies, and employers should not assume that any particular conviction will or will not appear; the rules vary by state and by the type of record involved.
What disqualifies an applicant, at a glance
| Suitability factor | What the IRS looks at | Typical effect on application |
|---|---|---|
| Unfiled tax returns | Any required personal or business return not yet filed | May delay or block approval until resolved |
| Outstanding tax liability | Unpaid federal tax without an acceptable payment arrangement | May delay or block approval; an installment agreement in good standing may mitigate it |
| Felony conviction under federal tax law | Any such conviction less than ten years old | Generally disqualifying within the ten year window |
| Felony conviction involving dishonesty or breach of trust | Fraud, embezzlement, theft type offenses, less than ten years old | Generally disqualifying within the ten year window |
| Continuing education shortfall at renewal | Fewer than 72 hours per three year cycle or missed annual minimums | Can block timely renewal until hours are made up |
| PTIN lapse | Annual PTIN not renewed | Can interrupt the ability to prepare returns even if enrollment itself is active |
What this means for employers and candidates
For a tax or accounting firm, an active enrolled agent credential is a useful signal that the IRS has already reviewed the person’s own tax compliance and screened for certain serious convictions, but it is not a substitute for a role specific hiring check. For a candidate, the practical takeaway is that personal tax filings matter well before the Form 23 application goes in: resolving back returns and setting up a payment arrangement on any balance due ahead of time avoids a suitability delay. Firms considering an enrolled agent for a role with signing authority, trust account access, or client facing representation may be able to layer additional verification, such as license and PTIN status checks and a standard FCRA compliant background check, on top of what the IRS has already reviewed, consistent with their own hiring policy and applicable state law.
Frequently asked questions
Does the IRS pull a full criminal background check on enrolled agent applicants?
The IRS suitability review focuses specifically on felony convictions under federal tax law and felony convictions involving dishonesty or breach of trust within the past ten years, along with the applicant’s own tax filing and payment history, rather than a general criminal history search of every offense type.
Can someone with a past criminal conviction still become an enrolled agent?
It depends on the offense and how long ago it occurred. The IRS FAQ describes disqualification tied to felony tax convictions or felony convictions for dishonesty or breach of trust that are less than ten years old, which means older convictions or convictions outside those categories may not automatically bar enrollment. Applicants with any criminal history should review the application carefully and may want to consult a tax attorney.
What is the PTIN and is it the same as being an enrolled agent?
A Preparer Tax Identification Number is a separate requirement for anyone who prepares federal tax returns for compensation. It is a prerequisite step before pursuing enrolled agent status and must be renewed annually, independent of the three year enrolled agent renewal cycle.
How often does an enrolled agent have to renew, and is there another suitability review at renewal?
Renewal happens every three years on a cycle tied to the last digit of the practitioner’s Social Security number, using Form 8554, and requires 72 hours of continuing education over the cycle. The renewal attestation gives the IRS another opportunity to confirm the practitioner’s standing.
Do accounting firms still run their own background checks on enrolled agents they hire?
Generally yes. The IRS suitability check is a federal licensing requirement, not an employment screening service, so firms may still run their own criminal history, credential verification, and reference checks as part of hiring, consistent with the Fair Credit Reporting Act when a third party consumer report is used.
Where can an employer verify that someone’s enrolled agent status is active?
The IRS maintains a public lookup tool to verify the status of an enrolled agent, which can confirm whether the credential is currently active.
Firms that want to add their own layer of screening on top of the federal suitability review, such as criminal history searches, employment verification, and credential checks, can learn more at Reveal Background. Related reading: CPA Background Check Requirements and Bookkeeper Background Check.
This article is general information, not legal or tax advice. Enrolled agent applicants and employers should consult the IRS and, where appropriate, a qualified attorney for guidance on specific situations.
