6 Reasons Why, Become An EA
Enrolled Agents (EAs) are highly respected tax professionals with federal licenses, enabling client representation before the IRS. Becoming an EA enhances career growth, earning potential, and tax law expertise, making it a valuable credential for tax professionals.
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!
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.
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 ONE, 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.
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.
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.
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:
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.
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 ONE 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.
Source- Trustpilot
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.
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.
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.
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.
Below are the steps required to become an Enrolled Agent:
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.
In conclusion, becoming an Enrolled Agent (EA) offers unmatched opportunities for career growth, flexibility, and earning potential. With the ability to practice nationwide and even internationally, EAs are in high demand, especially as remote work continues to rise. The EA credential not only boosts your credibility but also ensures you’re equipped with the latest tax law knowledge. Whether you’re seeking to advance your career or gain more control over your work-life balance, becoming an EA is a powerful step forward. Start your journey today and take advantage of the benefits this prestigious designation offers!
Jason Dinesen
