What Is an Enrolled Agent?

My Recommendation: Surgent EA Review

Many people choose a specific career path based on potential earnings. Although most people have heard of CPAs, fare less are familiar with the work of EAs are not aware of their potential income level.

Can Enrolled Agents give tax advice?

Enrolled Agents are respected among taxprofessionals. What Makes Enrolled Agents Unique? Enrolled Agents are the tax experts. Enrolled Agents are regulated by the Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals.

Job openings related to enrolled agent

You will then need a review course that will prepare you for the difficult CPA exam. The cost for sitting for the exam depends entirely https://www.bookstime.com/ on the state in which you plan to be licensed. Typically, there is a registration fee and a separate fee for each section of the exam.

How Much Can You Expect to Make as an Enrolled Agent?

Unlike the CPA exam, which requires you to have completed certain educational prerequisites, there are no educational requirements to sit for the Special Enrollment Exam (SEE). CPAs typically work in a more traditional office environment with a predictable salary that increases over time as they gather experience. Although pursuing your CPA may look more profitable at first glance, thanks to the increasing demand for enrolled agents, the EA’s earning potential increases faster than the CPA’s. In as little as 4 years, EAs can earn the same amount as the average CPA if they are successful and take on many clients.

According to Payscale.com, enrolled agents typically make anywhere between $30,000-$75,000 a year, while CPAs make between $40,000-$104,000 annually. EAs are not as common in the business sector, which means that you could choose to work from home. CPAs, on the other hand, are integral to businesses and also work in the public sector in more traditional capacity. Being an EA offers more flexibility in terms of lifestyle in terms of choosing where and how much you want to work. If you are deciding between becoming an enrolled agent or a CPA, you should weigh the pros and cons for each job.

To understand the difference between an enrolled agent and a CPA, we must look at what each of them actually does. The amount of time you need to prepare for the Enrolled Agent exam will affect when you can schedule your Enrolled Agent exam dates. Therefore, you should learn more about how long it takes to become an enrolled agent. As you can imagine, many candidates wait until the last minute to schedule their CPA Exam test dates. Accordingly, the first 10 days of March, June, September, and December can get very full.

Yes, the Big 4 accounting firms employ Enrolled Agents in multiple functions. While it may seem that Big 4 accounting firms only recognize the value of CPAs, they make use of online bookkeeping Enrolled Agents in positions that capitalize on the strengths of the EA designation. Enrolled agents have client-EA confidentiality privilege, just as a tax attorney does.

The Cost of EA Review Courses

There are many different enrolled agent courses available for a variety of prices. The most popular one, Gleim EA Review, costs $500 – $600. However, this course covers all 3 exam parts. enrolled agent salary While you won’t pay as much initially if you purchase your EA review course by exam part, you save money in the long run when you buy a complete course for all 3 exam parts.

SmartAsset’s advisor matching tool can pair you with up to three qualified advisors in your area who can help you through the tax process and all other areas of your finances. If you work with an EA, you can also rest easy knowing that he or she What is bookkeeping is qualified to handle any concerns that may come up with your returns. EAs must prove their competence in every area of taxation before they can receive certification. That competence makes them a great advocate should you ever need one.

  • The increased tax expertise offers new career opportunities, and a new designation shows your desire to continue learning and improving within the industry.
  • In order to become an enrolled agent, you must take the EA exam or have at least 5 years of IRS work experience under your belt.
  • A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O.

Our guide covers everything you need to know about the EA exam, including how to study for the exam, where to sit for the exam, test-day and time management tips, and how the exam is graded. There are 3 parts to the Special Enrollment Exam, also known as the EA exam. Each part is $184.97, for a total of $554.91. The IRS requires a $30 fee to complete the enrollment process. At the end of the day, you’ll spend $584.91 on exam fees to take the EA exam, provided you pass the first time.

The Enrolled Agent exam has 3 parts, and you must pay a testing fee for each one. You must pay this fee when you schedule the Enrolled Agent exam at a Prometric testing center. If you’d like to prepare your funds for the process of normal balance earning the EA, you need to know about all the enrolled agent fees and expenses. If you’ve got a particularly complicated tax situation, or you want financial advice that goes beyond taxes, you should work with a financial advisor.

To find the best EA exam prep for you, check out myenrolled agent courses comparison. You can also get answers to your EA exam questions at my enrolled agent blog. Once you pass the exam and are ready to become an EA, you must pay $30 to the IRS in order to complete the enrollment process. You’ll pay the fee at the same time that you submit a form (Form 23), and you must do both within 1 year of passing all 3 parts of the EA exam.

How hard is it to become an enrolled agent?

The national average annual salary of an Enrolled Agent is approximately $45,000. When compared to a CPA’s salary, which is averaged around $60,000, you’ll find that EAs usually make less. CPAs will be in a similar range as EAs, but with more experience CPAs have the potential to be in the $90,000-$100,000 range.

What Does an Enrolled Agent Do?

salary for enrolled agent

To qualify for high-level positions, EAs must typically have a minimum of 5 years experience in tax consulting, planning and training. Other tasks include preparing tax returns, performing tax accounting reconciliations, teaming up with the different departments regarding any tax issues, etc. But salary varies depending on where you are on the career continuum. Generally speaking though, if you are a CPA, your income will quickly outpace that of an EA.

Although it may seem like CPAs are more profitable, the increase in demand for enrolled agents means salaries are expected to grow. In as little as four years, EAs can earn the same amount as the average CPA if they are successful in gaining clients. Becoming an enrolled agent takes much less time than becoming a CPA.

I’m going to get my enrolled agent some time during grad school. I don’t want to be a CPA but I do enjoy taxes enough https://www.bookstime.com/articles/enrolled-agent-salary to do them on the side. From my understanding it gives you free reign in doing taxes just like a CPA would.

Consequently, you must consider the CPA Exam blackout dates when scheduling your Enrolled Agent test dates. Pay the testing fee ($181.94 per exam part) by credit card. Or, pay with an electronic check if desired by scheduling over the phone. The Enrolled Agent exam has no education or experience requirements. Consequently, the only thing you need to register for the EA exam is a Preparer Tax Identification Number (PTIN).

But don’t quote me on that because I haven’t done enough research about it yet. It’s much faster (and easier) to become an EA over a CPA. Unlike the CPA exam, which has education and experience prerequisites, anyone can sit for the EA Exam (aka the SEE Exam). You just need to obtain a Preparer Tax Identification Number (PTIN) first and then you can register for the exam.

Because the Enrolled Agent is a national designation, being an EA allows you to represent any taxpayer before the IRS. With a larger pool of potential clients, you’ll be more valuable to all accounting firms. It is true that CPAs typically earn more than Enrolled Agents, but the trade off is that the EA requires much less cost to obtain. As a result, the EA designation becomes profitable very quickly.