Versatile CareerThere is a wide range of career opportunities for enrolled agents. As an EA, you can work in different settings, such as government agencies and accounting firms, or establish your own tax consulting company. The enrolled agent credential opens doors to diverse career opportunities. Entry-Level EAsAn entry-level position is the starting point for an EA career after passing the exam. The annual average salary for beginners could range from $30,000 to $50,000. If you look at it, it may not be much, but keep in mind that EAs have the potential to see a rapid pay hike as they acquire experience and specialize in tax areas.
Key Factors:
- For example, your years of experience as a tax professional will help you earn more.
- Therefore, the ability to expand your client base beyond state borders is an advantage enrolled agents have over CPAs.
- Additionally, a cursory glance at Boston EA jobs reveals that salaries range anywhere from $41,653 and $60,309.
- Mid-level professionals can make $70,000 to $90,000 per year, depending on their experience and specialization.
- Senior-Level EAsEnrolled agents with five or more years of experience could have an annual income of $75,000 to $100,000 and even more.
- Ethical StandardsThe high ethical standards of Circular 230 bind enrolled agents to be always true in their dealings.
Many Enrolled Agents in India choose to operate as independent tax consultants, offering flexibility in their work schedules. According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. Lesser RequirementsCompared to the CPA credential, earning an EA designation is less strenuous. After passing the exam and the IRS background check, you can do tax preparation and client representation easily.
What is the Average Enrolled Agent salary?
Here, the agent would decide this based on the rules of taxation in the US. Next, the candidate must visit the Special Enrolment Examination contra asset account (SEE) website, schedule the test, and prepare for the exam by going through the sample papers and other resources. Offer some benefits (e.g., gyms, cafeterias, and daycare) that smaller firms can’t reasonably fit into their budgets.
- In India, EAs earn competitive salaries in the tax outsourcing industry, while abroad, particularly in the U.S., the compensation is substantially higher.
- 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.
- EAs also provide tax advice and file returns for individuals, corporations, partnerships, trusts, estates, and any other entities that have to report taxes.
- It’s essential to take into account the cost of living expenses in your deliberations as well.
- Once you have several years of experience in taxation, it’s much easier to pass the exam.
Visionary Finance Pro
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. Learn how becoming a tax expert can help you excel at firms of all sizes on our Enrolled Agents at the Big 4 blog. Tax preparers work with taxpayers to complete federal and state tax returns. This job usually involves a busy season, with the highest workload occurring from December to mid-April. Many EAs eventually open their own tax practices or specialize in niche areas like estate planning, corporate tax, or expatriate tax services. Being licensed at the state level, though means that the scope of work is limited to those jurisdictions.
Of course, the more experience you have, the more an employer will be willing to pay you. Consequently, entry-level positions start on the low end of these ranges, while senior positions claim the highest salaries. 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.
Career Growth Opportunities for Enrolled Agents In India :
- Of course, having your own agency also removes any limitations on your salary.
- If you lose your status, you will need to reapply and, in some cases, retake the SEE to regain your credentials.
- Once you click “continue,” you will be brought to a third-party website.
- Your level of professional experience, and the expertise you’ve accumulated with it, plays a deciding role in your salary.
- In the United States, an EA is a tax advisor who is a federally authorized tax practitioner empowered by the Department of Treasury.
- In the Pacific Northwest, where tech and trees reign, Seattle Enrolled Agents earn anywhere from $49,275 and $68,692.
The Enrolled Agent certification opens up opportunities to work in various sectors. Enrolled agents who have been working for some time go on to launch their own tax practices, providing extra flexibility. Moreover, whatever the state of the economy may be, people will always need help preparing their taxes or dealing with the IRS. In addition to traditional accountants, a lot of mid-sized to large corporations benefit from hiring a full-time enrolled agent. Similar to having a corporate attorney, having an Enrolled Agent on staff helps many companies stay on top of their complex tax issues. For instance, corporations rely on Enrolled Agents to advise them on policy, prepare taxes, and represent them in audits and other proceedings before the IRS.
Senior-Level Salaries
Not only that, a CPA has a much better chance of fast-tracking career possibilities to the CFO level. The CPA exam has four parts and overall, it’s much broader in scope than the EA exam. Hence, the CPA has a clear edge when the CPA vs EA salary is considered.
Midwest/Rockies
The candidate needs to clear some important scrutiny levels related to tax compliance and returns and criminal background. Finally, after passing the exams, the candidate can apply for the enrolment and pay the fee online. They need to download Form 23, which is the application enrolled agent salary for getting permission to practice before the IRS. They need to comply with the documentation process as requested by IRS. But it is equally important to fulfill the terms and conditions of any contract that they enter into with their clients. If required, these professionals should be able to testify in front of the IRS and submit all legal documents.
Credentials and Experience:
New EAs might start on the lower end of the pay scale, but as they gain years of experience and a more extensive client base, their earning potential generally sees a considerable boost. Tax professionals, like doctors and attorneys, have many specialized acronyms and designations. Two of the most recognized in the finance world are enrolled agents (EAs) and certified public accountants (CPAs). Let’s assume that John has already cleared his EA exam and has experience in tax-related research, consulting, and preparation. He is also proficient in using taxation software, like Turbo Tax and QuickBooks. He has been working as an EA for 8 years, assisting clients with planning and audit in taxation real estate cash flow and resolving disputes.