The highest paying types of enrolled agents are insurance broker, licensed insurance producer, and insurance producer. The highest-paying cities for enrolled agents are Green Bay, WI, San Francisco, CA, and Southfield, MI. An enrolled agent is responsible for representing individuals https://www.bookstime.com/ to the Internal Revenue Service. Since an enrolled agent has a number of responsibilities, the salary tends to be fairly lucrative. The most highly specialized Enrolled Agent probably isn’t going to be earning as much at a smaller organization as they could at a larger one.

Passing the Special Enrollment Examination

Jobs paying $47,500 or less are in the 25th or less percentile range, while jobs paying more than $70,500 are in the 75th or more percentile range. A mid-level enrolled agent with between five and 10 years of experience can generally expect to earn an average salary of $50,000. Congress created the designation of enrolled agent in 1884 following the Civil War. At this time, numerous U.S. citizens had government claims regarding property confiscated during the war.

Made your decision? Start studying for your exam.

EA roles are stable, consistent and always valuable, so your only real limitation is how far you want to go. For help taking the EA Exam necessary to start working, be sure to invest in Surgent EA Review. Becoming either an Enrolled Agent (EA) or a Certified Public Accountant (CPA) will significantly impact your career, giving you the title of “trusted professional” in either the tax or accounting fields. As you weigh the two options, consider differences in salary, job function and career path. These agents are experts in the field of tax, which is always in huge demand.

• Individuals who are considering becoming enrolled agents should enjoy working with people and have high ethical standards.
• Candidates who have a sufficient amount of work experience, according to IRS guidelines, may not even be required to take the exam.
• Woodrow Wilson then signed the Revenue Act of 1913, expanding enrolled agents’ roles to include preparing taxes and resolving taxpayer disputes with the IRS.
• Becoming either an Enrolled Agent (EA) or a Certified Public Accountant (CPA) will significantly impact your career, giving you the title of “trusted professional” in either the tax or accounting fields.
• Compare enrolled agent salaries for individual cities or states with the national average.

Average enrolled agent salary over time

An Enrolled Agent is a competent and knowledgeable tax professional who is authorized by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS). Beyond enrolled agent salaries, there are numerous advantages to becoming an enrolled agent. An EA is the only individual who has been the right to practice as granted expressly by the United States government. This type of license restricts their ability to practice to only the states where they have been licensed. Enrolled agents hold federal licensure, which gives them a much broader jurisdiction.

• Therefore, the girl is dependent on the taxpayer and needs coverage for expenses related to tuition fees and hostel stay.
• They can also represent any tax matter, as well as appeal to any office of the IRS.
• Managers are looking for new ideas and are prepared to provide the necessary on-the-job training to prepare new hires for success.
• Review our Career Guide for more information on the roles of each credential.
• If the idea of protecting the rights of others appeals to you, this could be a great career option.
• 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.

The ideal candidate to be an enrolled agent is someone who is detail oriented and enjoys delving into the continually changing nature of tax laws. Individuals who are considering becoming enrolled agents should enjoy working with people and have high ethical standards. If you’re applying for your first tax preparation job, your experience includes your education and any relevant extracurricular activities you participated in (such as the IRS’s VITA program).

Enrolled Agent Salaries for Entry Level

Having your own business allows you to specialize in particular niches and areas of interest, like working with high-net worth individuals or real estate agents and companies. Although CPAs may have a greater earning potential, that salary comes with the need to spend longer in school, gain more work experience, and take a much more in-depth exam. An entry-level enrolled agent with up to five years of experience can typically expect to earn an average of $42,000 per year.

• You can become an EA by obtaining a Personal Tax Identification Number (PTIN), passing all three parts of the IRS’s Special Enrollment Examination (SEE), and passing compliance and background checks.
• The first step is to obtain the Preparer Tax Identification Number (PTIN).
• Next, the candidate must visit the Special Enrolment Examination (SEE) website, schedule the test, and prepare for the exam by going through the sample papers and other resources.
• The path to an enrolled agent career is often more accessible than becoming a CPA.
• Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics.
• They are widely accepted anywhere in the US because of their high level of expertise, strong work ethics, and sense of confidentiality.

The most common places of employment for EAs are public accounting firms, both small and large, working as tax staff to prepare returns for a wide variety of clients. Banks often rely on EAs to ensure the bank is compliant with enrolled agent salary tax laws and regulation while law firms specializing in tax will hire EAs to handle IRS-related notices and communications for their clients. The job levels for enrolled agent status are entry, mid-level, and senior level.

This means that enrolled agents are able to represent taxpayers in any state in the country. Furthermore, enrolled agents are able to represent citizens abroad in tax matters. Becoming an EA is one of the best investments you can make in your career as a tax preparer. The benefits you’ll gain from earning the EA designation will far outweigh the cost of taking the EA exam. In addition to the salary benefits, you’ll also enjoy increased representation rights so you can expand your client base and the services you can offer.

Enrolled Agent career opportunities and salary

Firms are especially interested in candidates with technology skills that can be applied to growing areas like cloud systems and data analysis. Managers are looking for new ideas and are prepared to provide the necessary on-the-job training to prepare new hires for success. This is a great time to go into accounting, and becoming an Enrolled Agent will help you land an even bigger starting salary than you could without it.