An enrolled agent usually works on a year-round basis helping clients. As part of an EA’s job responsibilities, he or she often develops a strategy for handling matters with the IRS. In this capacity, enrolled agents work to reach satisfactory agreements regarding plans, payments, estimations, and settlements. Due to the fact that this type of work can be quite complex, the job of an EA is often in high demand. The Internal Revenue Service, in an effort to satisfy legal requirements, confers the status of enrolled agent to qualified candidates.
- In 2014, the average enrolled agent earned $31,983 annually, but today, they earn $35,171 a year.
- Agents with more than 20 years of experience may see a pay raise up to $60,000 per year.
- For example, many small to mid-sized businesses prefer to outsource their accounting.
- And, in addition to the standard background check, the IRS also investigates your personal tax history.
- Becoming an EA is one of the best investments you can make in your career as a tax preparer.
- They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues.
Other Salaries
This means that enrolled agents are able to represent taxpayers in any state in the country. Furthermore, enrolled agents are able to represent citizens abroad in tax matters. The IRS designates EAs, but because they represent taxpayers before the IRS, enrolled agents cannot work there. In most cases, enrolled agents compete with other tax professionals.
Gain relevant experience
On the other hand, a small company that specializes in complex tax situations would really benefit from having one or two EAs on staff. An entry-level enrolled agent with up to five years of experience can typically expect to earn an average of $42,000 per year. The hearings that an EA will often take part in usually occur via telephone. Additionally, enrolled agents must possess a thorough understanding of IRS documentation, as the documentation must be filed with the IRS. For this reason, an enrolled agent must also be well organized and capable of meeting reporting and filing deadlines.
Which companies pay enrolled agents the most?
- So, use our comparisons of the best EA review courses to find the right EA course for you, and use our EA discounts to save on your preferred exam prep.
- On-site daycare could save thousands of dollars and dozens of hours in commuting each year.
- Yet, both paths to the EA also involve extensive background investigations.
- Today, Ken continues to use those finely tuned skills to educate students as a professional writer and teacher.
- 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.
- In the Pacific Northwest, where tech and trees reign, Seattle enrolled agents earn anywhere from $49,275 and $68,692.
- Additionally, clients often prefer to work with a single individual or a small team for the sake of efficiency.
EAs can also represent any tax matter, as well as appeal to any office of the IRS. The National Association of Enrolled Agents reports that there are more than 50,000 enrolled agents working in the United States as well as abroad. 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.
Accounting Firms
In order to become an enrolled agent, you must satisfy the EA requirements of Treasury Department Circular 230. This document explains that you can obtain an Enrolled Agent designation in 1 of 2 ways. The first is by passing the Special Enrollment Examination (SEE), which has 3 parts.
To a large degree, the job of enrollment agents is actually recession proof. Enrolled agents ensure that citizens receive competent representation. If the idea of protecting enrolled agent salary the rights of others appeals to you, this could be a great career option. Anyone is allowed to sit for the enrolled agent exam, which is not the case for the CPA exam.
- The average enrolled agent salary in Alaska, Wisconsin, and Washington are the highest in the U.S.
- The big chains pay their more experienced enrolled agents between $20 and $30 per hour on average, which comes to between $40,000 and $50,000 annually.
- Therefore, because the CPA is a state certification, not a federal one, a CPA may want to earn an enrolled agent designation as well to expand her credentials and earning potential.
- In order to become an enrolled agent, you must satisfy the EA requirements of Treasury Department Circular 230.
As of October 2021, the Bureau of Labor Statistics (BLS) recorded the national median salary for CPAs in the U.S. as $73,560. Jobs paying $58,500 or less are in the 25th percentile range, while jobs paying more than $83,000 are in 75th percentile. The Enrolled https://www.bookstime.com/articles/government-and-nonprofit-accounting Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals. There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam.
According to the 2024 Robert Half Salary Guide, hiring trends in accounting and finance continue to favor the job candidate. Firms are looking to fill entry-level positions, so recent accounting grads and young professionals are in a great position to get their first accounting job. Firms are especially interested in candidates with technology skills that can be applied to growing areas like cloud systems and data analysis. Managers are looking for new ideas and are prepared to provide the necessary on-the-job training to prepare new hires for success.
