24.5 Continuing Education Requirements
Key Takeaways
72 hours of CE required per 3-year enrollment cycle.
Minimum 16 hours per year, including 2 hours of ethics every year (6 hours of ethics minimum per cycle).
CE must be from IRS-approved CE providers and focused on federal tax law (state CE does not count).
First renewal CE is prorated at 2 hours per full month enrolled (with 2 hrs ethics required for each enrolled year).
Records must be retained for 4 years from the renewal date; IRS may audit credits.
Passing the entire SEE during a cycle does NOT eliminate CE (the cycle minimums still apply per Circular 230 §10.6).
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.
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 (minimum) |
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 or backloaded) |
| 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 toward the 72 hours.
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 in the cycle |
| Annual ethics | 2 hours per enrolled year still required |
| Annual minimum | Each enrolled year still requires its proportional minimum |
Example: Enrolled on March 15, 2027. First renewal due January 31, 2030.
- Full months enrolled in cycle (April 2027 - December 2029): ~33 months.
- Prorated CE: 33 × 2 = 66 hours, with 2 ethics hours per enrolled calendar year.
CE & SEE Note
The general renewal requirement is 72 hours per cycle, at least 16 each year, including 2 ethics hours annually. Circular 230 §10.6(f)(3) also provides an alternative: pass every SEE part during the three years before renewal and complete at least 16 qualifying CE hours in the final cycle year. A single retake does not satisfy that alternative. Circular 230.
Record Retention
| Requirement | Detail |
|---|---|
| Retention period | 4 years from renewal date |
| Records to keep | Certificates of completion, transcripts, course outlines, provider information |
| Why | IRS may verify CE credits during or after renewal |
Real-World Scenario
Scenario: You are in year 2 of your renewal cycle. You have 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 to hit the 16-hour 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
Question types to practice on CE:
- 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 per cycle, 4-year retention, IRS-approved providers only.
How many CE hours must EAs complete each 3-year cycle?
36
48
72
120
What is the annual ethics CE minimum for EAs?
1 hour
2 hours
4 hours
6 hours
What is the minimum annual CE requirement for an EA?
8 hours
12 hours
16 hours
24 hours
How long must CE records be retained?
1 year
2 years
4 years
7 years
Sections you finish are checked off in the contents.