Mid-level enrolled agents typically earn between $52,000 after 1-2 years of work experience. An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service. Becoming an enrolled agent can also provide a certain amount of career security. In the last few years, IRS examinations or audits have increased significantly. This means there is a far greater need for EAs today than in the past.
Additionally, the EA credential is more client-focused, with a variety of career paths. Be sure to consider additional factors alongside salary when planning your professional path. What’s more, Enrolled Agents often fill the roles of both tax accountant and tax attorney.
What tax law is the examination based on? (updated March 1,
There is no national certification for CPAs, so they must be certified in each state in which they intend to work. First, it is important to understand the difference between an enrolled agent and a CPA. Read on to learn all you need to know about enrollment agent salaries, whether you’re just starting to think about becoming an EA or you’re well on your way. They need to comply with the documentation process as requested by IRS. But it is equally important to fulfill the terms and conditions of any contract that they enter into with their clients.
Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics. Most of your daily job will probably involve performing in-person or video conference interviews with customers to create thorough and accurate tax returns. To ensure customers receive the best results possible, an EA will probably need to contact state and federal tax officials.
How To Become An EA
In 2011, he used his experience to create IRS Solutions, a fully integrated system that incorporates all the tools that tax resolution pros need to streamline cases. Some Enrolled Agents dive deep into tax accounting, often helping businesses optimize their financial strategies in line with tax regulations. The average Enrolled Agent salary is approximately $52,000 annually, as compared to CPAs, who earn an average of approximately $70,000 a year.
- This sort of employment lends itself most frequently to a telecommuting career since it serves an international customer base.
- The length of time required to become an enrolled agent is much less than the amount of time required to become a CPA.
- Most of your daily job will probably involve performing in-person or video conference interviews with customers to create thorough and accurate tax returns.
- On-site daycare could save thousands of dollars and dozens of hours in commuting each year.
Enrolled Agent vs CPA
Here, the agent would decide this based on the rules of taxation in the US. The candidate needs to clear some important scrutiny levels related to tax compliance and returns and criminal background. The first step is to obtain the Preparer Tax Identification Number (PTIN). Once the above is submitted, the account is created, and PTIN is generated. In general, CPAs earn more than EAs in all career levels; however, the CPA credential requires significantly more schooling, time and up-front costs than the EA credential.
Enrolled Agent vs Tax Preparer
Water in a clear or transparent container with a lid or cap must have all labels removed, and the container will be inspected for notes or other prohibited test aids. You will need to remove the lid/cap for visual inspection by the irs enrolled agent salary Test Center staff. These inspections will take a few seconds and will be done at check-in and again upon return from breaks before you enter the testing room to ensure you do not violate any security protocol. With the exception of wedding and engagement rings and small stud earrings, jewelry is prohibited. Bring one original unexpired government-issued photo ID that includes your name, photo, and signature.
The Enrolled Agent exam is administered by Prometric testing centres, which have domestic and overseas sites. Therefore, you have 10.5 hours to answer 300 questions to pass the SSE Exam. The pass rate is between 70% and 74%, even when the average of the three components is considered. In such a case, it is crucial to determine the amount of tax that the taxpayer has to pay.
All labels must be removed, and the container will be inspected for notes or other prohibited test aids. The candidate will need to remove the lid/cap for visual inspection by the Test Center staff. Should the container not meet the requirements outlined, the candidate will be required to put it in their locker and will not be allowed to take it into the test room.
Job Tasks For Enrolled Agents
For example, daycare can be a considerable expense for young working families. On-site daycare could save thousands of dollars and dozens of hours in commuting each year. At the same time, some people dislike the bureaucracy that comes with larger organizations, and they’re happier at the end of the day if they have more freedom to pursue their own ideas. Office managers oversee several ongoing projects at once and work with staff to ensure that operations run smoothly.
In many cases, clients call upon the expertise of Enrolled Agents in complex tax situations where audits are likely. So, as the tax preparer, an Enrolled Agent is the most qualified to explain and defend the choices made during preparation. If you’re considering a career in accounting or finance, you may be curious about how much money Enrolled Agents make.
A minimum of 16 hours must be earned per year, two of which must be on ethics. Review detailed information about continuing education for enrolled agents. Although CPAs may have a greater earning potential, that salary comes with the need to spend longer in school, gain more work experience, and take a much more in-depth exam. The ideal candidate to be an enrolled agent is someone who is detail oriented and enjoys delving into the continually changing nature of tax laws. Individuals who are considering becoming enrolled agents should enjoy working with people and have high ethical standards. While both titles are well-respected in the tax world, whereas Enrolled Agents specialize in tax representation, CPAs typically have a broader scope of accounting and auditing practices.
He shares his knowledge on Forbes, Inc.com, and Entreprenuer.com, empowering readers to boost their careers. With his help, countless students and professionals have passed certification exams and achieved their dreams. Whether you’re seeking career advancement or educational success, Bryce Welker is the ultimate guide to help you get there. Each of the three EA exams will consist of 100 multiple-choice questions and take 3.5 hours to complete according to the Enrolled Agent exam pattern.
Which U.S. City Offers the Highest Salaries for Enrolled Agents in 2025?
- For example, many small to mid-sized businesses prefer to outsource their accounting.
- Large firms are willing and able to pay a premium to attract top talent.
- To become an enrolled agent, the IRS requires a few straightforward steps.
- Overall, it usually takes at least eight years to become a certified public accountant due to the necessary requirements.
The larger the company, the higher the pay for a given role, and the better defined your career path will be. Staff accountants handle various financial duties such as ensuring financial statements are prepared correctly and that companies follow the laws and regulations for financial practices. They handle balancing the budget and must use budgeting and auditing software programs. Bookkeepers ensure that a business makes the most economically viable and safe decisions to keep finances tight and under control. This position does not exclusively involve taxes, but having experience with tax planning can be beneficial to many bookkeepers.
In the right area, and with the right book of business, an Enrolled Agent can do quite well working in self-employment. Best of all, you can set your own schedule, work across the United States, and take on as many clients as you can keep. Of course, the more experience you have, the more an employer will be willing to pay you. Consequently, entry-level positions start on the low end of these ranges, while senior positions claim the highest salaries. For example, in Phoenix, a senior tax consultant with an Enrolled Agent designation and over 5 years of relevant experience can earn over 6 figures at a regional firm. Working as an Enrolled Agent at one of the larger national tax firms won’t necessarily earn you as much as you might make at a more specialized regional or local brokerage.
Their advisory services are recognized throughout the US and are very comprehensive. EAs are federally authorized to represent taxpayers before the IRS and have unlimited representation rights. This means EAs can represent any taxpayer, regardless of whether they prepared their income tax return.