What are the benefits of becoming an IRS Enrolled Agent?

Becoming an IRS Enrolled Agent (EA) can be a rewarding career path for individuals interested in taxation. Being an enrolled agent means taking the next step in your career as a tax practitioner. Not only does it grant you more legitimacy in your practice, but earning the credential will open doors for you and present countless new opportunities that are waiting to be explored. In this article, we will explore the various benefits of becoming an EA and why it could be a great option for those considering a career in the tax industry.

What is an IRS Enrolled Agent?

An Enrolled Agent credential is the most expansive license that the IRS grants to a tax professional. The credential allows EAs to represent taxpayers before the IRS. Unlike other tax practitioners, such as Certified Public Accountants (CPAs), who may have a broader scope of practice, EAs specialize exclusively in taxation.

What are the benefits of becoming an IRS Enrolled Agent? 

There are several compelling reasons why individuals may choose to become Enrolled Agents. Let's explore some of the main benefits:

Unlimited Representation before the IRS

One of the significant advantages of becoming an EA is the ability to represent clients before the IRS. EAs have unlimited representation rights, meaning they can represent taxpayers in all matters including audits, appeals, and collections. This level of authority gives EAs a valuable edge in advocating for their clients and resolving complex tax issues.

Verified Tax Expertise

To become an EA, individuals must demonstrate their tax expertise by passing the Enrolled Agent Exam. This comprehensive exam covers all aspects of tax law, ensuring that EAs possess a deep understanding of the IRS rules and regulations. Tax professionals can showcase their verified expertise to potential clients and employers by earning the EA credential.

Increased Earning Potential

Becoming an Enrolled Agent can also open doors to higher earning potential. With their specialized knowledge and ability to handle complex tax matters, EAs are in high demand. Many tax firms, businesses, and individuals seek the services of EAs, offering lucrative opportunities for those who choose to pursue this career path.

Job Security

Another benefit of becoming an EA is the relatively recession-proof nature of the job. Regardless of the economic climate, individuals and businesses will always have tax obligations and require the assistance of tax professionals. This provides a level of job security that is desirable in any career.

No Demanding Requirements

Compared to other tax credentials, such as becoming a CPA, the requirements to become an EA are relatively less demanding. While becoming a CPA typically requires a bachelor's degree and a certain number of accounting credits, the path to becoming an EA is more flexible. It allows individuals with diverse educational backgrounds and experience levels to apply for enrollment and become tax professionals.

Relatively Low Cost

The cost of becoming an EA is another advantage. The cost of taking the Special Enrollment Examination (EA exam) and obtaining the EA designation is relatively lower than pursuing a CPA license or other professional certifications. This makes it a more accessible option for those who want to enter the tax industry without incurring significant financial burdens.

How to Become an IRS Enrolled Agent

Now, let's first understand the steps to achieve this designation. To become an EA, you must pass the Enrolled Agent Exam, which is administered by the IRS. This exam assesses your knowledge of tax law and regulations. Additionally, you must meet certain experience requirements, which can be fulfilled in various ways, such as working for the IRS or working as a tax preparer.

Once you have passed the exam and met the experience requirements, you need to apply for the Enrolled Agent designation. This involves submitting an application to the IRS along with the necessary documentation. Once approved, you will receive your Enrolled Agent credential, granting you the authority to represent clients before the IRS. Lastly, you need to continue earning education credits. Enrolled agents must obtain 72 hours of continuing education every three years. A minimum of 16 hours must be earned annually, two of which must be on ethics. Enrolled agents must use an IRS-approved CE provider.

What Kind of Jobs Can an IRS Enrolled Agent Do?

Now that we have explored the benefits of becoming an IRS Enrolled Agent, let's look at the various job opportunities available to EAs. As mentioned earlier, EAs can work as tax preparers independently or as part of an accounting firm. They can also work as tax consultants, offering specialized tax advice and representing clients during IRS audits and appeals.

Additionally, EAs can work in the tax department of corporations, ensuring compliance with tax laws and regulations. They can also work for non-profit organizations, helping them navigate the complexities of tax-exempt status. Moreover, some EAs choose to work for the IRS, utilizing their expertise to enforce tax laws and assist taxpayers.

Conclusion:

Becoming an IRS Enrolled Agent is an excellent way to establish a rewarding and lucrative career in the tax industry. With many benefits, such as unlimited representation rights, credibility, and the ability to work in various roles, becoming an EA offers a wide range of opportunities. If you have a passion for taxes and enjoy helping individuals and businesses navigate the intricacies of tax laws, then becoming an IRS Enrolled Agent may be the right path for you. Take the necessary steps, pass the EA exam, and join the ranks of respected tax professionals who make a difference in their clients' financial lives.

How can Taxfyle help? 

Now that you know what benefits being an IRS Enrolled Agent offers, you may be asking yourself how you can easily leverage your EA credential to increase your income. Taxfyle can help. 

Through our platform, we connect enrolled agents like you to opportunities to help you increase your potential earning opportunities. On our platform, you don’t have to worry about sacrificing your flexibility or being micromanaged. How many jobs you pick up is entirely up to you. 

If you want to discover new ways to increase your income, become a Taxfyle Pro. 

‍