To become an enrolled agent, it is necessary to pass a three-part examination. Additionally, anyone who is interested in becoming an EA will need to pass a background check. The background check will consist of researching the candidate’s personal tax history. This is quite important considering the importance of ethics in this job role. The length of time required to become an enrolled agent is much less than the amount of time required to become a CPA.
Enrolled Agent Salaries for Senior Level
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Job Outlook for Enrolled Agents in 2025
And, if you decide to work for a non-finance-related company as an Enrolled Agent, you can actually expect to earn a bit more. Typical salaries for accounting agencies were around the $50,000 mark. On the other hand, accounting jobs for enrolled agents at top corporations like Apple, Starbucks, FedEx, and GE typically pay between $60,000 to $80,000 per year. Although pursuing your CPA may look more profitable at first glance, thanks to the increasing demand for enrolled agents, the EA’s earning potential increases faster than the CPA’s. In as little as 4 years, EAs can earn the same amount as the average CPA if they are successful and take on many clients. A mid-level enrolled agent with between five and 10 years of experience can generally expect to earn an average salary of $50,000.
Enrolled Agent Salary in Self-Employment
- Yet, in the mile-high city, over half of the EA salary figures posted are above $112,000 annually.
- To become an enrolled agent, it is necessary to pass a three-part examination.
- For example, in Phoenix, a senior tax consultant with an Enrolled Agent designation and over 5 years of relevant experience can earn over 6 figures at a regional firm.
- If you’re planning to start your own book of business, then earning the Enrolled Agent designation is a great way to differentiate yourself from the bulk of your competitors.
- On the other hand, the smallest successful brokers and agents typically see less than a million dollars come through their doors each year.
- This job usually involves a busy season, with the highest workload occurring from December to mid-April.
- It’s essential to take into account the cost of living expenses in your deliberations as well.
What’s more, the median pay for Enrolled Agents in Denver is in line with the U.S. median at over $44,000. Yet, in the mile-high city, over half of the EA salary figures posted are above $112,000 annually. And while they say everything’s bigger in Texas, this statement doesn’t necessarily hold true for Dallas Enrolled Agent salaries. But the average EA salary in Dallas for jobs posted in the area pay between $36,674 and $53,100 annually. Additionally, because Enrolled Agents are federally designated, they can work in any state in the country. Statement of Comprehensive Income And, with the increased convenience and reliability of telecommuting technology, a small firm can serve clients nationwide.
The biggest step you can take to increase your salary as a tax preparer is to become an Enrolled Agent. If you’re the type that thrives as your own boss and has big plans to build your own business, you can use your Enrolled Agent credential to jump into entrepreneurship. EAs can take on the risk—and reap the rewards—of opening their own tax service firm, helping clients file taxes, optimize savings, stay compliant, and navigate IRS audits. You can also work as an independent consultant, taking on contracts with clients and/or firms to offer your expertise in tax services. As a credentialed Enrolled Agent with the ability to offer any tax service for any client, you’re equipped to take on a world of new job opportunities.
However, some prefer to work for only one client or for a corporation or a smaller business. As you’ll see, each employment option for Enrolled Agents has its pros and cons. Working as an Enrolled Agent at one of the larger national tax firms won’t necessarily earn you as much as you might make at a more specialized regional or local brokerage. The big chains pay their more experienced Enrolled Agents between $20 and $30 per hour on average, which comes to between $40,000 and $50,000 annually. However, jobs posted for smaller regional agencies tend to pay higher. For instance, the range for some posted jobs in these types of companies is between $60,000 and $85,000.
Enrolled Agent Salaries for Entry Level
Download Becker’s FREE EA Exam Guide ebook to learn more about being an EA, career insights, and everything you need to know about the EA Exam and how to pass. In order to become an Enrolled Agent, you must satisfy the EA requirements of Treasury Department Circular 230. This document explains that you can obtain an Enrolled Agent designation in 1 of 2 ways. The first is by passing the Special Enrollment Examination (SEE), which has 3 parts. An enrolled agent is responsible for representing individuals to the Internal Revenue Service.
- With the right mix of experience, specialization, and professional development, EAs can steadily increase their earnings and advance into senior-level roles.
- There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam.
- If your goal is to work at one of the Big 4 accounting firms, the Enrolled Agent designation is one way to stand out from other applicants.
- If you don’t currently have the IRS experience to become an Enrolled Agent, you’ll need to pass the EA exam.
- After Congress passed the income law in 1913, the duties of EAs were expanded to include tax representation.
Related Certifications by Salary
- EAs can also represent any tax matter, as well as appeal to any office of the IRS.
- The hearings that an EA will often take part in usually occur via telephone.
- And another factor that makes a significant difference is the type of employer for whom you choose to work.
- Enrolled agent salaries at IDEMIA and Acuity Insurance are the highest-paying according to our most recent salary estimates.
- What’s more, the median pay for Enrolled Agents in Denver is in line with the U.S. median at over $44,000.
They handle balancing the budget and must use budgeting and auditing software programs. https://www.bookstime.com/ Once you click “continue,” you will be brought to a third-party website. Please be aware, the privacy policy may differ on the third-party website.
Why the EA Certification is Necessary to Work in the US Tax Domain?
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. Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics. With the IRS increasing enforcement and audit activities, the demand for tax representation is on the rise. Additionally, the complexity of tax laws means individuals and businesses alike continue to rely on professional expertise.