Key Takeaways
- 72 hours of CE required per 3-year cycle.
- Minimum 16 hours per year (including 2 hours ethics annually).
- CE must be from IRS-approved providers.
- First renewal is prorated (2 hours per month enrolled).
- Records must be retained for 4 years from renewal date.
- Retaking SEE reduces CE to 16 hours for that cycle.
Continuing Education (CE) Requirements
Why This Matters for the Exam
CE requirements ensure EAs stay current with tax law. The exam tests specific numbers: 72 total, 16 annual, 2 ethics per year. Know these cold.
Expect at least 3-4 questions on CE requirements.
The Core CE Requirements
| Requirement | Hours |
|---|---|
| Total per 3-year cycle | 72 hours |
| Minimum per year | 16 hours |
| Ethics per year | 2 hours (minimum) |
| Total ethics per cycle | 6 hours |
Annual Distribution Rules
You cannot "cram" all CE into one year:
| Rule | Requirement |
|---|---|
| Minimum per year | 16 hours |
| Maximum per year | No maximum |
| Ethics per year | 2 hours (cannot be skipped) |
| Carryover | Excess hours do NOT carry over to next cycle |
Example 3-Year Distribution:
- Year 1: 20 hours (including 2 ethics) ✓
- Year 2: 26 hours (including 2 ethics) ✓
- Year 3: 26 hours (including 2 ethics) ✓
- Total: 72 hours (6 ethics) ✓
Types of Qualifying CE
| CE Type | Qualifies? |
|---|---|
| Federal tax law | Yes |
| Federal tax updates | Yes |
| Ethics (Circular 230) | Yes (required) |
| State tax law | No |
| Accounting (non-tax) | No |
| Marketing/practice management | No |
Key Point: All CE must be federal tax related. State-specific CE does not count.
Approved Providers
CE must be obtained from IRS-approved CE providers:
| Provider Type | Examples |
|---|---|
| Professional organizations | NAEA, NATP, state EA societies |
| Educational institutions | Colleges, universities |
| Commercial providers | IRS-approved online providers |
| IRS programs | IRS-sponsored seminars (limited) |
You can verify approved providers on the IRS CE Provider Database.
First Renewal Exception (Prorated CE)
For newly enrolled EAs, the first renewal CE is prorated:
| Rule | Calculation |
|---|---|
| Proration | 2 hours per full month enrolled |
| Ethics | Prorated proportionally |
| Minimum | 16 hours (including 2 ethics) |
Example: Enrolled on March 15, 2024. First renewal due January 31, 2027.
- Months enrolled: April 2024 - December 2026 = ~33 months.
- Prorated CE: 33 × 2 = 66 hours (but the normal 72 may apply depending on cycle timing).
SEE Exception
If you retake and pass the entire SEE during a renewal cycle:
| Rule | CE Required |
|---|---|
| Total for that cycle | 16 hours only |
| Ethics | 2 hours |
| Rationale | SEE demonstrates current competency |
Record Retention
| Requirement | Detail |
|---|---|
| Retention period | 4 years from renewal date |
| Records to keep | Certificates, transcripts, course info |
| Why | IRS may verify CE credits |
Real-World Scenario
Scenario: You're in year 2 of your renewal cycle. You've completed 40 hours so far (25 in year 1, 15 so far in year 2), including 4 hours of ethics.
- Year 1: 25 hours (≥16 ✓), 2 ethics ✓
- Year 2 so far: 15 hours (need 1 more for 16 minimum), 2 ethics ✓
- Year 3 needed: 32 hours (72 - 40), including 2 ethics
- Status: On track, but must complete 16+ hours including 2 ethics in year 3.
On the Exam
Expect 3-4 questions on CE, typically:
- Total Hours Questions: "How many CE hours per 3-year cycle?"
- Annual Minimum Questions: "What is the minimum CE per year?"
- Ethics Questions: "How many ethics hours are required annually?"
- Retention Questions: "How long must CE records be retained?"
The key is to remember: 72 total, 16 per year, 2 ethics per year, 6 ethics total, 4-year retention.
How many CE hours must EAs complete each 3-year cycle?
What is the annual ethics CE minimum for EAs?
How long must CE records be retained?