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Enrolled Agents (EAs) hold prestigious federal licenses, enabling them to advocate for clients before the IRS. As the IRS's highest qualification, an EA credential signals expertise and trust. For tax preparers seeking career growth, becoming an EA is paramount. Let's explore why this designation is vital for Enrolled Agents professionals.

In this post, we’ll tell you the top 6 reasons for you to become an Enrolled Agent. Let’s begin!

 Why Become An Enrolled Agent?

There are many reasons to become an Enrolled Agent. Some people may be looking for a career change, and becoming an EA could be the perfect option. Others may want to increase their earning potential or learn more about tax law. Below, we'll delve into 6 compelling reasons you want to become an Enrolled Agent.

1. In-Demand Expertise

We live in an increasingly virtual world. The upward trend of remote work means many professionals are looking for careers that allow for flexibility. EAs are federally licensed and can practice in any state from anywhere. 

While it’s explicitly for U.S. tax, a global economy means you can probably find work as an Enrolled Agent almost anywhere. This makes the EA a prime choice for tax advisors looking to transition to remote work. Being able to practice anywhere gives you more flexibility than with other accounting certifications, like the CPA, which operates by State Board rules.

Let's take a closer look at some statistics highlighting the demand for EAs:

Statistic

Data

Number of Enrolled Agents in the U.S.

64,490

Employment Growth (2019-2029) of EA

0.4 percent annually from 2019 to 2029

Average Salary of EA

$71K and $133K


Thinking of how to become an Enrolled Agent? You need to apply for the EA exam, and at myCPE, we are providing you with a complete course package that is going to help you in preparing for your EA exam with EA Exam Prep Courses. 

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2. Career Versatility

Becoming an Enrolled Agent offers a wide range of career options. You can work in various settings, including accounting firms and government agencies, or establish your own tax consultancy. Whether you prefer a stable job with an established organization or the flexibility of self-employment, the EA credential opens doors to diverse career paths. 

3. Competitive Earnings

Enrolled Agents earn an average salary of $71K in the U.S., which is about $7,000 more than their unenrolled counterparts. As a tax preparer, your salary is likely going to increase the longer you are in the tax profession. 

But earning your EA—which you can do in less than a year—can increase it by the same amount as earning years of experience. And you’ll instead spend those years increasing your income above that higher base rate.

The EA certification opens up opportunities to work in many different roles in various businesses, including accounting firms or tax offices. Big 4 firms hire EAs for various positions because they can practice in all 50 states and prepare taxes for international clients filing in the U.S. Many EAs who have been in the field for a while go on to launch their own tax practices, providing extra flexibility in their careers.

Plus, regardless of how the economy performs, people will always need help preparing taxes or dealing with the IRS. Earning your EA designation will give you expertise and opportunities to move forward in your career.

4. Fewer requirements than a CPA

Compared to the CPA, earning the EA designation is a less strenuous process. There are no education or experience requirements. After you pass the Enrolled Agent exam and the IRS background check, you can focus on tax preparation and client representation without having to jump through the hurdles required to become a CPA. 

If you become an EA and are still interested in earning your CPA, we’ve laid out the benefits of dual certification.

The steps to become an Enrolled Agent are much less demanding than other accounting certifications. The only requirements to become an EA are to:

  • Obtain a PTIN (Personal Tax Identification Number)
  • Schedule and take the Enrolled Agent exam and pass all three parts within 2 years
  • Apply for enrollment (Click here)
  • Pass a suitability check

5. Ethical Standards

EAs are held to high ethical standards and are bound by Circular 230. Circular 230 is a set of regulations that require them to act professionally and ethically while representing clients before the IRS. This code of conduct instills trust and credibility in clients and peers, which is vital in the financial industry. 

6. Client Impact

As an Enrolled Agent, you have the opportunity to make a significant difference in the lives of your clients. You can help individuals and businesses save money, resolve tax issues, and achieve financial stability. The satisfaction of knowing you've positively impacted someone's financial well-being is one of the most rewarding aspects of being an EA. 

myCPE EA Exam Prep Course

myCPE is a trusted education platform offering a complete exam preparation course. Our $149 EA Exam Prep Course plan offers an affordable solution for the students/professionals aiming to ace the Enrolled Agent exam. Our budget-friendly pricing ensures our course is accessible to all aspiring students and professionals.

Why myCPE?

  • 55+ Video Lectures [100+ Hours]
  • 3,000+ Practice Questions
  • Unlimited EA Practice Examinations
  • 100% On-Demand Courses
  • Monthly Mentoring Sessions
  • Free Online Updates Until You PASS

Quality and premium resources are designed to elevate your understanding and performance.

Freedom to pursue your EA aspirations without the burden of hefty expenses.

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FAQs

Why should I become an enrolled agent?

EAs have unlimited representation rights. Without an EA credential, a non-certified tax preparer is only able to represent clients whose tax returns they have prepared and signed. In contrast, EAs can represent their clients before the IRS on any matter, including audits and appeals.

What is the path to becoming EA?

EA certification follows a straightforward process. Applicants do not need to hold a particular degree or meet experience requirements. EA candidates must apply for a preparer tax identification number (PTIN), sign up for the certification exam, and pass all parts of the exam.

What is the passing score for the EA exam?

The IRS has set the scaled passing score at 105. Failing candidates are provided a scaled score value so that they may see how close they are to being successful. Candidates who receive a scaled score of 104 are very close to passing. Candidates with a scaled score of 45 are far from being successful.

How much does it cost to become an enrolled agent?

Once you pass the exam and are ready to become an EA, you must pay $140 to the IRS in order to complete the enrollment process. (Pay Online) You'll pay the fee at the same time that you submit a form (Form 23), and you must do both within 1 year of passing all 3 parts of the EA exam.

How to Become an IRS Enrolled Agent?

Below are the steps required to become an Enrolled Agent:

  • Apply to take the Special Enrollment Examination (SEE); 
  • Achieve passing scores on all 3 parts of the SEE; 
  • Apply for enrollment; 

Pass a suitability check, which will include tax compliance to ensure that you have filed all necessary tax returns and there are no outstanding tax liabilities and criminal background.

Conclusion

Becoming an EA is a great way to advance your career in tax preparation and representation. EAs have a high earning potential, job security, and flexibility. They can also represent clients before the IRS in all tax matters.

If you are considering becoming an EA, there are many resources available to help you prepare for the SEE and to find a job as an EA.

Imtiaz Munshi, CPA
Imtiaz Munshi, CPA
CFO, AZSTEC LLC

The author Imtiaz Munshi is a Certified Public Accountant and CFO at Azstec, LLC. He is Business Strategist, Tax Planner, Entrepreneur and Advisor to "HNEs" (High Net Worth Entrepreneurs).

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