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. And, if you decide to work for a non-finance-related company as https://www.bookstime.com/articles/accounts-payable-outsourcing an enrolled agent, you can actually expect to earn a bit more. 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. In New York City, the average salary for an enrolled agent is above the national average, with NY EAs making $62,423 on average.

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• This position does not exclusively involve taxes, but having experience with tax planning can be beneficial to many bookkeepers.
• The benefits you’ll gain from earning the EA designation will far outweigh the cost of taking the EA exam.
• “Earning the EA Designation brought my credentials inline with my professionalism and experience. It is a great talking point with my clients and gave me the confidence to increase my fees.”
• There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam.

These courses are typically focused on taxation and representation matters, allowing Enrolled Agents to stay up-to-date on current tax codes and representation practices. The SEE is designed to assess the examinee’s understanding of tax codes, tax theory, ethics, as well as their practical application skills. Because the EA credential is focused on tax issues, there is no requirement for a college degree or other educational qualifications beyond passing this exam. This makes the EA credential an attractive option for those who want to specialize in tax-related matters without delving into the broader scope of financial accounting and reporting.

Average enrolled agent salary

The last thing you want is your clients getting contradictory or confusing information when dealing with more than one “expert” regarding matters of tax, finance, and investment. In most cases the confusion could be avoided if everyone was on the same page and had equal share of information. Internal Revenue Agent requirements include US citizenship, plus either a four-year degree or experience along with 30 semester hours of accounting coursework. Latest salary numbers for an IRS – Internal Revenue Agent range from $40,000 to $130,000 annually.

For Larger Enterprises and Complex Accounting Needs

Another way to boost your salary and solidify your expertise is to become dual-certified. Whether you’re just getting started as an Enrolled Agent or are already a CPA wanting to specialize in tax, dual certification is the best way to help yourself stand out from the crowd. An enrolled agent is responsible for representing individuals to the Internal enrolled agent salary Revenue Service. Since an enrolled agent has a number of responsibilities, the salary tends to be fairly lucrative. 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.

This job usually involves a busy season, with the highest workload occurring from December to mid-April. 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. EA salaries depend on a variety of factors, such as the number of years of experience, type of experience, and work location. But the fact that smaller firms have to specialize can be both a blessing and a curse for enrolled agents. For example, a small agency that specializes in escrow accounting may not need an enrolled agent.

Working with an EA

It should be noted that the IRS looks at education but will also take experience, licensure and credentials into account when evaluating new candidates. There are many career tracks to consider as you apply to work for the IRS but one of the best places to start is as an IRS Internal Revenue Agent. IRS Revenue agents are responsible for reviewing tax returns and conducting audits, as well as identifying and collecting overdue taxes.

• The average Enrolled Agent Salary in The United States is $56,000 per year.
• A smaller step, but still one in the direction of earning more for your expertise, is completing the Annual Filing Season Program.
• In this capacity, enrolled agents work to reach satisfactory agreements regarding plans, payments, estimations, and settlements.
• If you don’t currently have the IRS experience to become an enrolled agent, you’ll need to pass the EA exam.
• Most tax firms do not specialize in preparing just business returns, but having the knowledge needed to prepare business returns will be beneficial to you as you seek employment.
• For example, your years of experience as a tax professional will help you earn more.

Which companies pay enrolled agents the most?

• Staff accountants handle various financial duties such as ensuring financial statements are prepared correctly and that companies follow the laws and regulations for financial practices.
• On the other hand, the smallest successful brokers and agents typically see less than a million dollars come through their doors each year.
• They must stay up to date on relevant tax laws and often communicate across departments to ensure the entire firm is complying with accounting procedures.
• They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues.

Given the current rising number of examinations, more citizens have found themselves in need of representation. To a large degree, the job of enrollment agents is actually recession proof. If the idea of protecting the rights of others appeals to you, this could be a great career option. This exam covers auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation. Overall, it usually takes at least eight years to become a certified public accountant due to the necessary requirements. In some states, candidates must also work a certain number of hours under the direction of a CPA prior to being allowed to sit for the exam.

CPAs are federally approved to represent you in all matters before the IRS. Those that specialize in tax preparation can also typically help you with tax and financial planning, accounting needs, and most other financial tasks that you might have. Look to a CPA to identify the credits and deductions you qualify for to increase your tax refund and help lower your tax bill.

See what you can earn as an Enrolled Agent

Therefore, as with the lion’s share of the small accounting agencies out there, specialization is key. Consequently, building a reputation as the tax expert in town (and the tax law expert) can really help your career. Self-employed enrolled agents who operate their own accounting agencies can expect more earnings than their counterparts at large brokerages and corporations. At a median of over $53,000, the salary for an independent enrolled agent is not bad. Furthermore, when you consider the lack of an upper limit on your earning potential, the idea of self-employment becomes very attractive.