The IRS just made it cheaper to become a tax preparer
What happened
The IRS cut the fee for each part of the special enrollment exam for tax preparers by one-third. This means it now costs less to become an "enrolled agent" who can represent taxpayers before the IRS.
Why it matters
Becoming an enrolled agent allows individuals to represent taxpayers in audits, collections, and appeals, a role typically reserved for attorneys and CPAs. Lowering the exam fee removes a small financial barrier for people looking to enter this profession. This could increase the number of qualified tax preparers, especially for individuals and small businesses who need help navigating complex tax issues.
The signal
Watch for an increase in the number of people taking the enrolled agent exam and the number of new enrolled agents certified in the next 12-24 months.