Enrolled Agent Salary Guide

The last thing you want is your clients getting contradictory or confusing information when dealing with more than one “expert” regarding matters of tax, finance, and investment. In most cases the confusion could be avoided if everyone was on the same page and had equal share of information. Internal Revenue Agent requirements include US citizenship, enrolled agent salary plus either a four-year degree or experience along with 30 semester hours of accounting coursework. Latest salary numbers for an IRS – Internal Revenue Agent range from $40,000 to $130,000 annually. Ken has gained a wealth of business experience through his previous employment as a CPA, Auditor, Tax Preparer and College Professor.

They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues. 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. 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. EAs can also represent any tax matter, as well as appeal to any office of the IRS.

What Is An Enrolled Agent?

An entry-level enrolled agent with up to five years of experience can typically expect to earn an average of $42,000 per year. 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. According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. CPAs typically work in a more traditional office environment with a predictable salary that increases over time as they gather experience.

In the last few years, IRS examinations or audits have increased significantly. Given the current rising number of examinations, more citizens have found themselves in need of representation. To a large degree, the job of enrollment agents is actually recession proof. If the idea of protecting the rights of others appeals to you, this could be a great career option. A senior-level enrolled agent with between 10 and 20 years of experience can typically expect to earn an average salary of $55,000.

Enrolled Agent Information

The responsibilities for a mid-level position exceed that of an entry-level agent, which explains the difference in pay. Enrolled agents are specialized tax practitioners who are certified to represent taxpayers in dealings with the IRS. EAs prepare taxes, can stand in for you during an audit, and handle other business you may have with the IRS. When it comes to jobs in accounting and finance, many people consider becoming CPAs, while few think about the option of becoming enrolled agents. With an increasing need for EAs across the nation, choosing to follow this career path can be both satisfying and lucrative. As a result, the CFP or advisor has a better understanding of their clients’ needs, as well as solutions that ensure the financial well-being of their clients’ portfolios and estates.

• As an EA seeking employment in this area of work you will generally need (2) years of experience preparing individual federal and state returns.
• If your goal is to work at one of the Big 4 accounting firms, the Enrolled Agent designation is one way to stand out from other applicants.
• Additionally, enrolled agents must possess a thorough understanding of IRS documentation, as the documentation must be filed with the IRS.
• Based on recent job openings, salary ranges in private practice between $35,000 – $100,000 a year.
• Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics.
• Thousands more own rental property or earn interest or dividends from U.S. investments.
• It goes without saying that you should always put a client’s needs first, what better way to separate yourself from others than as a knowledgeable wealth and tax expert?

There is no national certification for CPAs, so they must be certified in each state in which they intend to work. You will also fill out financial forms (assets and liabilities, income and expenses), and cross-reference this information with pertinent financial documents per IRS guidelines. Much of your work will require meticulous records keeping as you prepare and draft IRS correspondences. Certified public accountants do generally have more job opportunities due to the fact that they can work for private individuals, in the private sector, or for the government. 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.

Pay

Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before. Learn more about enrolled agents in Treasury Department Circular 230PDF. By preparing individual or business taxes you’ll get real world experience helping tax clients with some of the more common problems they face.

This exam covers auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation. Overall, it usually takes at least eight years to become a certified public accountant due to the necessary requirements. In some states, candidates must also work a certain number of hours under the direction of a CPA prior to being allowed to sit for the exam.

What is the highest pay for Enrolled Agents?

Unlike CPAs, enrolled agents become nationally certified, so they can practice in any state with the same certification. To become an enrolled agent, it is necessary to pass a three-part examination. 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.

• Individuals who are considering becoming enrolled agents should enjoy working with people and have high ethical standards.
• Tax managers handle all the tax reporting and compliance with local, state, and federal tax laws for an organization.
• Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
• As of October 2021, the Bureau of Labor Statistics (BLS) recorded the national median salary for CPAs in the U.S. as $73,560.
• Most tax firms do not specialize in preparing just business returns, but having the knowledge needed to prepare business returns will be beneficial to you as you seek employment.

This job usually involves a busy season, with the highest workload occurring from December to mid-April. There is a myth that Enrolled agents are hiding behind a desk crunching numbers all day, this could not be further from the truth. As an EA your day can consist of relationship building to grow various areas of the business through direct selling, client follow up and client retention. Interpersonal skills are important and successful tax preparation companies often upsell additional products and services such as audit defense, offering peace of mind for your tax clients. As you learn and grow in your career, you may find yourself mentoring future junior level tax professionals as well. EA salaries depend on a variety of factors, such as the number of years of experience, type of experience, and work location.

How Much Do Enrolled Agents Earn?

Today, Ken continues to use those finely tuned skills to educate students as a professional writer and teacher. An enrolled agent is responsible for representing individuals to the Internal Revenue Service. Since an enrolled agent has a number of responsibilities, the salary tends to be fairly lucrative. 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.