Why Become an Enrolled Agent?

Congress has highlighted that the public faces high preparation fees, error-filled tax returns, and above-average error rates when dealing with non-certified tax preparers. Enrolled Agents, however, are recognized as individuals with special competence in tax matters and professional ethics.

Consequently, tax legislation has begun to evolve, and some lawmakers are pushing to require that tax preparers become certified. This puts unenrolled tax preparers at a disadvantage, but you can be prepared by becoming an EA before legislation takes effect.

For every client who files their tax return on time, there may be several more who file late, owe back taxes, or have some other tax issue that you can help rectify once you get your EA. You don’t need to rely on a CPA for these types of clients when you are an EA!

Remember, EAs have virtually the same representation rights as CPAs and are regarded as tax experts. So, as an Enrolled Agent, you may face difficult tax questions, but you will be compensated well for your expertise. Enrolled Agents earn 50% more on average than their unenrolled counterparts.

Plus, regardless of how the economy performs, people will always need help preparing taxes or dealing with the IRS, so becoming an EA offers job security as well!

Interested in seeing just how much money you can earn as an Enrolled Agent? Check out our EA salary guide!

The CPA Exam has a whole slew of requirements and educational prerequisites that vary slightly from state to state. In contrast, the EA designation has no educational prerequisites, though the IRS does require you to get a PTIN and pass the EA exam, also known as the Special Enrollment Exam (SEE).

It’s really that simple! After you get your PTIN, pass the EA exam, and complete an IRS background check, you can focus on tax preparation and client representation without having to jump through the hurdles required to become a CPA.

Unlike CPAs, who have to attain a different license for each state, EAs can practice in any state. You avoid having to reapply to an individual state board of accountancy if you want to move out of state. This makes earning the EA a prime consideration for tax advisors looking to transition to remote work! It also qualifies you to work in tax at large corporations with national and international presences.

It is important to note, while Enrolled Agents have nearly unlimited practice rights, they can’t provide qualified opinions on financial statements like a CPA can. So, if your goal is to practice both assurance and tax, you will need your CPA license for any state where you do assurance work. However, if your practice is focused on tax and you want the ability to serve tax clients from anywhere in the U.S., the EA designation is the most effective and economical option.

Compare the CPA and EA on our blog!