The hiring of tax examiners is projected to decline 4% from 2020 to 2030 as the growth of the tax examiner industry is closely tied to changes in federal, state, and local government budgets. The growth of the enrolled agent industry depends on industry rule changes and the demand for tax services. However, there is a growing need for EAs in private and public accounting firms, law firms, corporations, local and state government agencies, and banks. Generally speaking, CPA salaries tend to be higher than enrolled agent salaries. This could depend on where the individual is on the career ladder. However, the salary of a CPA will quickly exceed the salary pace of an EA.

Additionally, anyone who is interested in becoming an EA will need to pass a background check. The background check will consist of researching the candidate’s personal tax history. This is quite important considering the importance of ethics in this job role. The length of time required to become an enrolled agent is much less than the amount of time required to become a CPA.

Enrolled Agents vs other tax professionals

Most folks end up here because of the information I provide on marketing and selling tax resolution services. While hiring an EA, CPA, or attorney is definitely an option, I would still encourage you to obtain your Enrolled https://personal-accounting.org/is-leverage-good-or-bad/ Agent license yourself. Honestly, the test isn’t that difficult for an experienced tax preparer that puts in a couple weeks of study. The Gleim test prep books are the ones I used, and they were pretty good.

• You can also look for companies that offer tax preparation, and they are in a position to provide links to experienced enrolled agents.
• Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
• In order to become an Enrolled Agent (EA) the person has to take and pass a three part proctored exam.
• There have been additional duties to the new role of an enrolled agent.
• An EA is the only individual who has been the right to practice as granted expressly by the United States government.
• That is one of the reasons people have a hard time comparing the enrolled agent vs CPA.
• The length of time required to become an enrolled agent is much less than the amount of time required to become a CPA.

In the process, you can carve out even more weekly study time when you temporarily drop non-essential activities from your normal routine. It might not be fun, but it will be worthwhile once you’ve finished the exam and have the EA to show for it. To focus on your weak areas, take a practice quiz at the start of each study unit. Then, use the results of the quiz to figure out which topics need more of your attention.

The enrolled agent license is the highest credential the IRS issues.

They can’t owe the IRS and must have filed all their tax returns due to date. An IRS enrolled agent typically represents a client during IRS hearings or when dealing with legal tax matters. In addition to the enrolled agent job title, these duties also extend to licensed attorneys and Certified Public Accountants or CPA’s.

• The job later evolved to include claims for monetary relief for citizens whose taxes had become inequitable after the income tax was passed in 1913.
• An enrolled agent must take and pass the IRS Special Enrollment Examination (SEE), although a college degree isn’t necessary.
• It is a great platform to get a comprehensive list of enrolled agents within your area.
• They must abide by the specifications of the Treasury Department’s Circular 230, which provides the guidelines governing enrolled agents.
• To understand what differs in the role of EAs vs. CPAs, let’s first review how each is licensed.
• An Enrolled Agent is authorized by the U.S. federal government to represent taxpayers before the IRS.

In Washington State, for example, a potential CPA has to work for a minimum of 12-months and 2,000 hours in accountancy under the supervision of a currently  licensed CPA. All licensors require a bachelor’s degree with at least 150 hours of coursework. Some states require a specific number of accounting classes, some do not. Beware of preparers who encourage you to lie or otherwise modify your information in order to get a bigger refund. However, no matter who you hire, there are certain things to keep in mind.

Why should I choose an enrolled agent who is a member of the National Association of Enrolled Agents (NAEA)?

An enrolled agent is a federally accredited tax practitioner who may represent taxpayers before the IRS. EAs are granted unlimited rights to represent any taxpayer for any tax matter before any IRS office. The enrolled agent license is the most expansive license the IRS grants a tax professional.

It is a great platform to get a comprehensive list of enrolled agents within your area. You have a guarantee of competent EA since NAEA work under ethical rules and regulations. You can also look for companies that offer tax preparation, and they are in a position to provide links to experienced enrolled agents.

How Does Being an EA Work?

Before you get too far into the process of becoming an EA, you want to know if it is worth the time, effort, and funds required. But the benefits of the EA include increased job opportunities, income, status before the IRS, and tax expertise, so I believe the designation is very advantageous. One of the main reasons people choose to become an EA is the generous enrolled agent salary. In addition to the stringent testing enrolled agent definition and application process, the IRS requires enrolled agents to complete 72 hours of continuing education every three years to maintain their licenses. NAEA raises the bar even further—its members are required to complete at least 90 hours in a three-year period. If you get a letter from the IRS, or worse, are audited or are the target of a collection action, your EA can speak directly to the IRS on your behalf.