1884: Congress lets Treasury regulate practice
The Treasury Department explains it this way in its 2024 proposed rule: since 1884, federal law has expressly authorized the Secretary of the Treasury to regulate practice before the Treasury Department. That law is now codified at 31 U.S.C. 330. The authority citation printed in Circular 230 lists both the 1884 act, cited as Sec. 3, 23 Stat. 258, and 31 U.S.C. 330. Section 330(a) lets the Secretary require that a representative show good character, good reputation, the necessary qualifications, and competency before being admitted to practice. For most candidates, the comprehensive three-part IRS exam is how that competency is shown.
1921: Circular 230 becomes the rulebook
Treasury first published Circular 230 in 1921 and has amended it periodically since. It is the set of regulations governing practice before the IRS. Sections 10.2 and 10.3 define practice and list who may practice, including attorneys, CPAs, and enrolled agents. Section 10.4 sets the two routes to enrollment: passing the IRS examination, or, for certain former IRS employees, qualifying through past technical experience. The current printed version is Revision 6-2014. When you study Part 3 of the SEE, Representation, Practices and Procedures, you are studying this document.
2011 to 2014: Preparer regulations and Loving v. IRS
Before 2011, unenrolled return preparers generally were not subject to Circular 230. Final regulations issued June 3, 2011 (TD 9527) created a new category, the registered tax return preparer, and extended Circular 230 to them. The rule was challenged in court. In Loving v. IRS, 917 F.Supp.2d 67 (D.D.C. 2013), the district court held that preparing returns, by itself, is not practice before the IRS. The D.C. Circuit affirmed in 2014 at 742 F.3d 1013, and the registered tax return preparer program was enjoined. The case drew a line that still matters: preparing a return and representing a taxpayer before the IRS are different activities under the statute.
2014 and 2016: AFSP and the end of the ERPA exam
In July 2014, the IRS set up the Annual Filing Season Program under Rev. Proc. 2014-42, dated July 14, 2014. AFSP participants are otherwise unenrolled preparers who voluntarily consent to the duties in Circular 230. In return they receive limited representation rights, not the unlimited rights of an enrolled agent. In a separate change, the IRS stopped offering the Enrolled Retirement Plan Agent Special Enrollment Examination on February 12, 2016.
2026: The exam moves to PSI
Prometric administered the Special Enrollment Examination until February 2026. Effective March 1, 2026, Prometric no longer develops or administers the SEE, and the IRS contracted PSI Services, LLC. Testing under PSI was expected to roll out starting July 1, 2026. This is a change of vendor, not of the credential: the routes to enrollment in Circular 230 section 10.4 did not change with it. The season's other changes are logged on the enrolled agent news and policy page.
Why this history matters for candidates
Three practical points come out of the record. First, the scope of the credential. The IRS describes enrolled agent status as the highest credential it awards, with unlimited practice rights like attorneys and CPAs. AFSP participants get limited rights, and after Loving, preparing returns alone does not count as practice. If representation is the goal, enrollment is the route. Second, the rulebook. Enrolled agents practice under the authority of 31 U.S.C. 330, so they answer to Circular 230 for conduct, sanctions, and fees. That is why Part 3 of the SEE spends so much time on it. Third, the competency requirement. Section 330(a) ties admission to competency, and the IRS measures it with the three-part exam. The rules can still change, and a pending Circular 230 proposal is covered on the future of the enrolled agent page.
What candidates ask next
When did the enrolled agent credential begin?
The legal foundation is an 1884 federal law, cited in Circular 230 as Sec. 3, 23 Stat. 258 and now codified at 31 U.S.C. 330. It authorizes Treasury to regulate practice before the Treasury Department, including who may represent taxpayers.
What is Circular 230?
Treasury Department Circular No. 230 is the set of regulations governing practice before the IRS. It was first published in 1921 and has been amended periodically. The current printed version is Revision 6-2014.
What did Loving v. IRS decide?
The district court held in 2013, and the D.C. Circuit affirmed in 2014, that preparing tax returns alone is not practice before the IRS. The registered tax return preparer program created in 2011 was enjoined.
How is the AFSP different from enrolled agent status?
AFSP participants are unenrolled preparers who voluntarily consent to Circular 230 duties under Rev. Proc. 2014-42 and receive limited representation rights. Enrolled agents have unlimited practice rights before the IRS.
Does the IRS still offer the ERPA exam?
No. The IRS stopped offering the Enrolled Retirement Plan Agent Special Enrollment Examination on February 12, 2016.
Why are enrolled agents bound by the rules in Circular 230?
Enrolled agents practice before the IRS under authority Congress gave Treasury in 31 U.S.C. 330, and Circular 230 is the regulation Treasury issued under that authority. It sets their duties, restrictions, and sanctions.
Primary sources
Dates, citations, and holdings on this page come from these primary sources, checked on October 18, 2026.
