An enrolled agent is someone who specializes in multiple tax-related issues, including business that are small or large scale, and individual. Their primary role is representing clients before the IRS by assisting them with tax topics and administrative services. Becoming an enrolled agent can help your career in many ways.
Becoming an Enrolled Agent
The primary prerequisite to becoming an enrolled agent is being a tax accountant. If you pass a three-part exam that requires knowledge on tax law and it’s processing, you can become an enrolled agent. Tax accountants need to pass two tests within two years to become certified, and becoming one doesn’t take any time or experience prior to the test.
Background checks are necessary, but you have likely gone through one before becoming an accountant. You also have to keep up with continuing education credits to remain an enrolled agent. Enrolled agent courses are a great way to start your journey, and will help you understand what exactly the exam involves.
With that said, what are the benefits of becoming an enrolled agent in the first place?
Tax Expertise Verification
You will be considered a tax expert by the general population. Being an enrolled agent means you have the highest certification that the IRS can offer you. There are rigorous standards in place for this certification, and the test is no walk in the park. If you manage to pass these two tests, the IRS will consider you to be an expert in tax-related issues. EAs are regulated by The Department of Treasury, and your certification is recognized in every state.
It goes without saying that upgrading your certifications will give you more job opportunities, as well as a higher salary. This is great for anyone who has been doing the same accounting job for years and is looking for something different. EAs are often needed in tax firms because of their rarity. You can also get employed in the government or in the private sector. You’ll definitely stand out against your fellow accountants when being interviewed for a job.
Higher Earning Potential
A better certification means more money. Getting an EA certificate doesn’t up your salary by chump change either; your wage will be raised by several thousand dollars and will keep increasing the more you work in the firm and the more experience you get. Enrolled agents are expected to know everything there is to know about taxes, so your expertise is very attractive to high profile clients. EAs generally earn less than CPAs, however it all depends on experience, industry and luck.
You can also represent a wide variety of taxpayers for the IRS in all tax topics. There are no limits to what you can educate your client on, so you’ll have endless amounts of clients.