Before delving too deeply into this field as a career option, it’s important to understand EA salaries to determine if this is the right career choice for you. The enrolled agent salary 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. Let’s assume that John has already cleared his EA exam and has experience in tax-related research, consulting, and preparation.
- These are both factors to weigh alongside salary numbers for each profession.
- Along with details regarding how to gain the enrolled agent status, it is equally important to have a clear idea about the salary structure.
- In order to sit for the EA exam, all that is required is a preparer tax identification number.
- Unlike other non-enrolled tax professionals, an Enrolled Agent has special permission to perform legal services that other tax professionals cannot.
- Let’s assume that John has already cleared his EA exam and has experience in tax-related research, consulting, and preparation.
- To become an enrolled agent, it is necessary to pass a three-part examination.
Steps to Earn the IRS Enrolled Agent Salary
Big cities have more job opportunities and a larger pool of skilled workers, but they also typically have a higher cost of living, so location isn’t everything. If you dislike the cold and aren’t comfortable in a big city, you don’t have to live in New York or Chicago to make a living as an Enrolled Agent. For example, daycare can be a considerable expense for young working families.
The job levels for enrolled agent status are entry, mid-level, and senior level. Entry-level candidates, who are mainly practitioners, may earn around $52,000 annually, and focus primarily on tax returns. The mid-level professionals may earn a little more than the above, which may again go up to $80,000 per year. However, senior-level professionals have a very lucrative pay scale, which may go up to $132,000 annually.
They handle balancing the budget and must use budgeting and auditing software programs.
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 addition to traditional accountants, a lot of mid-sized to large corporations benefit from hiring a full-time enrolled agent.
Review our Career Guide for more information on the roles of each credential. However, even after clearing the above, the agent must renew their status every three years. They also need to meet the continuing education requirements, which should be 72 hours every 3 years or 16 hours every year. They should review their credit chart frequently and keep updated contact information. Finally, after passing the exams, the candidate can apply for the enrolment and pay the fee online.
What is the pass rate of the Enrolled Agent?
Furthermore, enrolled agents are able to represent citizens abroad in tax matters. The Internal Revenue Service, in an effort to satisfy legal requirements, confers the status of enrolled agent to qualified candidates. An individual who has been certified as an enrolled agent is then allowed to serve as an intermediary for private businesses and citizens in relation to tax questions and disputes. Enrolled agents are typically employed by businesses specializing in handling income tax resolutions or preparing tax returns.
Who should earn the EA?
Generally speaking, interested candidates should have a background in public accounting. As demand increases for tax advice due to changes in the tax law, the demand for EAs is also going to increase. An EA who starts their own business may have a higher earning potential than the average EA or CPA salary. Another factor to consider as you choose your career path is the earning potential for both the EA credential and CPA license.
For example, many small to mid-sized businesses prefer to outsource their accounting. So, having one person serve as both their tax preparer and their tax attorney appeals to these clients quite a lot. Additionally, clients often prefer to work with a single individual or a small team for the sake of efficiency. Therefore, as with the lion’s share of the small accounting agencies out there, specialization is key. Consequently, building a reputation as the tax expert in town (and the tax law expert) can really help your career. According to a recent search on Indeed.com, over half of the Enrolled Agent jobs in Atlanta pay more than 6 figures.
Therefore, the girl is dependent on the taxpayer and needs coverage for expenses related to tuition fees and hostel stay. However, the student is eligible for a scholarship on her tuition fees. Next is the five years of work experience working with the IRS, which is extremely important to gain practical knowledge in the field of enrolled agents for the IRS. But the fact that smaller firms have to specialize can be both a blessing and a curse for Enrolled Agents. For example, a small agency that specializes in escrow accounting may not need an Enrolled Agent. On the other hand, a small company that specializes in complex tax situations would really benefit from having one or two EAs on staff.
This is a great time to go into accounting, and becoming an Enrolled Agent will help you land an even bigger starting salary than you could without it. Anyone is allowed to sit for the enrolled agent exam, which is not the case for the CPA exam. In order to sit for the EA exam, all that is required is a preparer tax identification number. After passing the exam and paying the necessary enrollment fee, candidates will then be required to pass a compliance check to ensure they have paid all their taxes. Candidates who have a sufficient amount of work experience, according to IRS guidelines, may not even be required to take the exam. To become an enrolled agent, it is necessary to pass a three-part examination.
- As mentioned previously, the median salary for enrolled agents in the United States in 2023 was $58,531.
- An entry-level enrolled agent with up to five years of experience can typically expect to earn an average of $42,000 per year.
- Therefore, the EA salary range in that city is a little lower, with the average salary about $38,197 to $55,306.
- Their advisory services are recognized throughout the US and are very comprehensive.
- Another data point that someone thinking about a career path should consider is whether or not jobs are expected to see growth in the future.
Which U.S. City Offers the Highest Salaries for Enrolled Agents in 2025?
After Congress passed the income law in 1913, the duties of EAs were expanded to include tax representation. However, the CPA credential requires significantly more schooling, time, and upfront costs than the EA credential. These are both factors to weigh alongside salary numbers for each profession. Bureau of Labor Statistics (BLS) for detail into the lowest and highest salary earnings for enrolled agents. By considering these factors – experience, role, and location – one can better gauge potential EA salary ranges. However, individual circumstances may lead to variations in actual compensation.
Similar to having a corporate attorney, having an Enrolled Agent on staff helps many companies stay on top of their complex tax issues. For instance, corporations rely on Enrolled Agents to advise them on policy, prepare taxes, and represent them in audits and other proceedings before the IRS. One reason Enrolled Agent salaries across America are so widespread is that Enrolled Agents can hold various positions.
Enrolled Agent Salary in Self-Employment
My expertise is rooted in my CPA, and CGMA credentials, and an educational background that includes an MBA and an MS in Strategic Management. 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. 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. According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020.
They must stay up to date on relevant tax laws and often communicate across departments to ensure the entire firm is complying with accounting procedures. Tax managers handle all the tax reporting and compliance with local, state, and federal tax laws for an organization. While this position is commonly filled by a CPA, the Enrolled Agent designation is a great way to secure your tax specialization.
