What is an enrolled agent?
EAs are specially certified by the IRS to help American taxpayers who find themselves in a tax dilemma or simply need help devising tax strategies or preparing their annual returns. There are only 50,000 EAs in the United States, and demand is high.
Could you be an EA? The ideal EA has these characteristics:
- Attention to detail
- A drive to keep up with the ever-changing tax code
- Deep understanding of IRS rules and procedures
Good with peopleStrong people skills- Deep
lycommittmentedto ethical standards
A career as an EA can be satisfying, fulfilling and financially rewarding. Do you have what it takes?
Who would make a good enrolled agent?
Not just anyone can become an EA.[JC1] While there are no educational prerequisites, it takes the right experience and character to succeed.
Uncredentialed accountants
Many accountants might think of earning their CPA as the first step up the career ladder, but it might be better to get the EA first to see if tax work is the right line of work.
The EA credential is recognized across the U.S., and it can even allow the holder to prepare taxes for international clients filing in the U.S. Businesses of all sorts find it advantageous to have enrolled agents on staff to help prepare returns and represent clients before the IRS.
Earning an EA credential also is less expensive than getting a CPA. The exam costs hundreds of dollars less, and there’s no need to pay for any additional educational credits. You also don’t need to study as many hours or pass as many exam sections.
On top of all that, you have two years to pass the exam. You can study at your own pace while you still have time to devote to family, friends and work.
CPAs, CIAs and CMAs
The EA is a logical next step for these professionals striving to broaden their horizons. It signals your availability and expertise to anyone looking for specialized tax help. It also adds a skill-setskill set that employers seek out as a valuable addition to the workplace.
In short, with the EA, you gain privileges and expertise in preparing and auditing taxes, making it a pathway to promotions and career advancement.
Tax preparers
Tax preparers know about the annual tax busy season roller coaster. From January through April, you have a steady stream of clients – and income. The rest of the year, business dries can dry up.
EAs work year-round because the IRS never sleeps. People who are being audited can need help any time of year. Others need specialized help with tax strategy, preparation and handling. As an EA, you can provide assistance and representation year-round. Your income stabilizes with steady work.
In fact, your income can actually rise due to your increased usefulness. You will be equipped with the ability to help more clients in more areas, and those unlimited representation rights put you in the room wherever your client needs to go. Plus, with the shortage of EAs nationwide, the law of supply and demands means that you can charge more for your services.