The most popular EA course, Gleim EA Review, costs between $380 and $630, depending on your course package. While salary is an important consideration, the EA role offers distinct advantages. EAs provide specialized tax expertise that is essential for individuals and businesses navigating complex tax situations. This expertise, while potentially commanding lower salaries than the broader CPA role, remains highly valuable in the financial services sector. Becoming an enrolled agent can also provide a certain amount of career security.

Benefits Of Being An Enrolled Agent

During the taxing season, both EAs and CPAs are fully engaged in preparing tax returns, although their approach may differ. EAs, often former IRS employees, use their in-depth tax knowledge to provide tailored tax advice and handle ea accountant salary complex tax situations. CPAs, however, offer a broader range of tax services, combining their accounting practices to provide comprehensive financial planning alongside tax preparation.

Comparing EA vs CPA in Salary, Scope, and Career Paths in Financial Accounting

However, the CPA credential requires significantly more schooling, time, and upfront costs than the EA credential. These are both factors to weigh alongside salary numbers for each profession. During tax season, these agents review and prepare tax returns for both individuals and businesses. Unlike CPAs, enrolled agents become nationally certified, so they can practice in any state with the same certification.

• If you have a more complex business environment or need extensive accounting services beyond taxes, a CPA is your go-to professional.
• They can also represent any tax matter, as well as appeal to any office of the IRS.
• The CPA Exam has four parts, and the exam content is much, much broader.
• All EA candidates must pass a background check conducted by the IRS which includes looking into your personal tax history.
• The length of time required to become an enrolled agent is much less than the amount of time required to become a CPA.

This means that if you fail one part, you have the option to retake it sooner than you could before. CPAs generally earn higher salaries due to their broader range of responsibilities in accounting. Tax managers handle all the tax reporting and compliance with local, state, and federal tax laws for an organization. While this position is commonly filled by a CPA, the Enrolled Agent designation is a great way to secure your tax specialization. Office managers oversee several ongoing projects at once and work with staff to ensure that operations run smoothly. They must stay up to date on a wide variety of projects and report directly to higher-level executives.

Enjoy a 14-day Free Trial on Becker CPA Courses

Typically, their clients are businesses that need both accounting and tax services. 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. A mid-level enrolled agent with between five and 10 years of experience can generally expect to earn an average salary of $50,000. The hearings that an EA will often take part in usually occur via telephone.

The AFSP is a yearly 15 to 18 hour continuing education program governed by the IRS. Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”. The income potential for EAs tends to flatten out over time with peak earnings to be around $60,000. If you are a partner in a CPA firm or a CFO for a conglomerate, you could easily take home six figures.

To take the enrolled agent exam, you must pay a testing fee for each exam part. The exam has three parts, and the testing fee is $206, which comes to a total of $618. To pass the exam, you’ll also need to purchase an enrolled agent course that provides study materials covering the exam content.

Since an enrolled agent has a number of responsibilities, the salary tends to be fairly lucrative. A CPA needs to have a 4-year degree from a qualified university, then pass the CPA Exam in order to earn the CPA credential. The average Enrolled Agent salary is approximately $52,000 annually, as compared to CPAs,  who earn an average of approximately $70,000 a year.

Offer some benefits (e.g., gyms, cafeterias, and daycare) that smaller firms can’t reasonably fit into their budgets. This in turn makes you a more popular choice compared to your peers when it comes to a potential client looking for a tax professional. If you are a CPA, then there is no need to become an EA, as the CPA is qualified to perform the duties of the EA. A case where this might make sense is if you work as an EA while you are preparing to sit for your CPA exam and then continue to specialize in taxation. Otherwise, it would be a redundancy for an established CPA to seek EA status. Considering becoming an Enrolled Agent, but curious about the salary prospects?

What is the average Enrolled Agent salary?

In the last few years, IRS examinations or audits have increased significantly. This means there is a far greater need for EAs today than in the past. Given the current rising number of examinations, more citizens have found themselves in need of representation.

Here, we dive deep into the specifics of these roles, from their educational qualifications to their place in today’s business environment. If you are an enrolled agent, you specialize in tax issues period — such as preparation of taxes for individuals and business entities or advising clients. Job opportunities for you may be found at tax preparation franchises or working for a CPA.