In a letter addressed to the IRS Office of Professional Responsibility, the National Association of Enrolled Agents (NAEA) voiced strong support for Issue Twelve of the IRS Advisory Council (IRSAC) report, which advocates for broadening continuing education requirements to include practice management topics for Enrolled Agents (EAs). Representing over 66,000 tax professionals, the NAEA emphasized that while EAs are experts in tax law, knowledge in areas like software, data security, client relationships, and staff management is equally critical to their success. The current exclusion of these topics from reportable continuing education limits EAs’ ability to stay competitive and provide comprehensive services to their clients.

The letter highlights that the evolving landscape of tax preparation, driven by technological advancements, makes practice management education increasingly important. The NAEA pointed to feedback from the 2023 and 2024 IRS Nationwide Forums, where practice management panels were offered as optional sessions. The overwhelming positive response and demand for more sessions demonstrated a clear need for formal education in this area. Tax professionals expressed interest in learning about emerging topics such as hiring strategies, effective communication, and artificial intelligence—skills essential to running a modern tax practice.

By integrating practice management into continuing education, Enrolled Agents would be better equipped to handle not just tax preparation, but the broader operational demands of their profession. The NAEA argued that allowing EAs to count up to four hours of practice management within the 72-hour renewal requirement would enhance their overall competency and ensure they remain current with industry best practices. This, in turn, would benefit clients through improved service quality and operational efficiency.

In conclusion, the NAEA urged the IRS to adopt IRSAC’s recommendation and amend sections 10.6(e)(2) and (f) of Circular 230 accordingly. The association expressed gratitude for the opportunity to provide input on this issue and reiterated its willingness to support the IRS in implementing these changes. By embracing this proposal, the IRS would not only support the professional growth of Enrolled Agents but also contribute to a more effective and responsive tax preparation industry.