how to become an enrolled agent

On average, EAs earn nearly 10% more per return than someone without a designation. In short, you must complete 72 hours of CE every 3 years. And you can’t postpone all of those hours until the last year. Instead, you need to fulfill 16 hours of CE each year.

The CPA is a type of license, and the EA is a credential. Yet, individual states grant the CPA, while the federal government grants the EA. Therefore, EAs and their tax expertise are acknowledged at a national level. EAs are known across the country as top-notch tax preparers. And, they can advise clients in matters that involve multiple states. The EA designation is the highest credential issued by the IRS . Enrolled Agents, along with Attorneys and CPAs, are the only tax professionals with unlimited representation rights, meaning they can represent any client on any matter before the IRS.

Enrolled Agent Salaries for Senior Level

When the legislature saw that there were more horse-related claims than there were actual horses, they passed a law. A mid-level enrolled agent with between five and 10 years of experience can generally expect to earn an average salary of $50,000. 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 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. Once you have taken and passed one exam, you have two years to pass the other two parts.

how to become an enrolled agent

At least two hours of the annual training must be in ethics. Beyond legal matters, an enrolled agent how to become an enrolled agent can also serve as your neighborhood Tax Pro providing tax return filing services in-season.

How do you become an enrolled agent?

Your expert will only sign and file your return if they know it’s 100% correct and you are getting your best outcome possible. If you get a larger refund or smaller tax due from another tax preparer, we’ll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. Some EAs work primarily with very small limited liability corporations that employ freelance and contract workers.

  • These days, the profession is still available to nearly anyone.
  • Your earning potential is much greater as an Enrolled Agent because you have a higher level of tax knowledge and are unrestricted — meaning you are able to do more things for your clients.
  • It’s also a good idea to review the Candidate Information Bulletin.
  • Here at Platinum Tax School, we make it easy for you without any added obstacles.

The IRS does not require any specific educational background to become an enrolled agent. Applicants have to pass each section of the three-part exam and undergo a background check. The EA credential can verify your credibility, open doors to new careers, and attract work opportunities. Tax preparers, accountants, and those wanting to move into tax preparation can gain confidence with an EA license. Becoming an enrolled agent can take your tax-preparing skills to another level. Read on to learn how to earn a license and access additional resources.

What Is An Enrolled Agent?

Even if you are not in a rural area, you might find small-scale farms in urban or suburban areas. These farmers will need help with their tax issues and being versed in this area will provide another level of job security. In 1913, the federal government began implementing an income tax on citizens of the United States. Woodrow Wilson signed this into law when he ratified the 16th Amendment to the Constitution. Along with this, citizens received greater protections from Enrolled Agents.

  • And with CPAs placing a premium on their services, EAs are more likely to appeal to clients.
  • Review Exam Content Outlines – Read the full detailed test specifications to become familiar with the content of each part of the exam.
  • Experienced tax preparers can try to test out of the Comprehensive Tax Course to save time and money within the CTP® program.
  • Enrolled agent status is the highest level of IRS certification.