Enrolled Agent Salary

Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”. 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. 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.

Navigating the Enrolled Agent Financial Landscape

• In 2014, the average enrolled agent earned $31,983 annually, but today, they earn $35,171 a year.
• In many cases, clients call upon the expertise of enrolled agents in complex tax situations where audits are likely.
• So, having one person serve as both their tax preparer and their tax attorney appeals to these clients quite a lot.
• And, if you decide to work for a non-finance-related company as an enrolled agent, you can actually expect to earn a bit more.
• EA salary potential is influenced by various factors including experience, role, and location.

In the right area, and with the right book of business, an enrolled agent can do quite well working in self-employment. Best of all, you can set your own schedule, work across the United States, and take on as many clients as you can keep. 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.

Average Enrolled Agent Salary

The first is by passing the Special Enrollment Examination (SEE), which has 3 parts. The candidate needs to clear some important scrutiny levels related to tax compliance and returns and criminal background. The first step is to obtain the Preparer Tax Identification Number (PTIN). Once the above is submitted, the account is created, and PTIN is generated. Let us learn about the steps in an enrolled agent course that the candidate should take to gain the qualification and become an EA.

Highest paying industries for enrolled agents

As an enrolled agent, you can provide services Accounting For Architects to your clients that other CPAs, bookkeepers, and finance professionals can’t. What’s more, enrolled agents often fill the role of both tax accountant and tax attorney. In many cases, clients call upon the expertise of enrolled agents in complex tax situations where audits are likely. So, as the tax preparer, an enrolled agent is the most qualified to explain and defend the choices made during preparation.

Average Salary

On the other hand, a small company that specializes in complex tax situations would really benefit from having one or two EAs on staff. In New York City, the average salary for an enrolled agent is above the national average, with NY EAs making $62,423 on average. Additionally, a cursory glance at Boston EA jobs reveals that salaries range anywhere from $50,316 and $70,142. Elsewhere in the region, such as Baltimore, the majority of the enrolled agent positions pay between $45,908 and $63,998 per year. Unlike other non-enrolled tax professionals, an enrolled agent has special permission to perform legal services that other tax professionals cannot.

It’s essential to take into account the cost of living expenses in your deliberations as well. 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. In case they are omitting any important information, they should provide a proper explanation regarding the same, otherwise, there may be serious legal consequences. Urban centers like New York City may offer higher salaries compared to smaller towns, following basic supply and demand principles.

They must stay up to date on a wide variety of projects and report directly to higher-level executives. Especially in organizations that employ many tax experts, having an office manager with tax expertise is incredibly valuable. For each stage of your Enrolled Agent career, you’ll see an average salary increase of 8.38%. Compare enrolled agent salaries for individual cities or states with the national average. An enrolled agent’s salary ranges from $22,000 a year at the 10th percentile to $54,000 at the 90th percentile. Different industries have varying levels of complexity regarding tax regulations, compliance requirements, and financial structures.

The main service that distinguishes an enrolled agent from others is the ability to represent taxpayers. In addition to preparing taxes and providing advice, enrolled agents have permission to act on behalf of their clients in any and all dealings with the IRS. They are widely accepted anywhere in the US because of their high level of expertise, strong work ethics, and sense of confidentiality. To gain this status, the candidate needs to clear the Special Enrolment Examination (SEE) as a part of the enrolled agent qualification. Different specializations, such as tax preparation or financial consultation, may command varying compensation levels. It’s important to consider one’s particular niche when evaluating earning potential.

• A tax specialist is a knowledgeable professional who provides expertise and guidance in navigating tax laws.
• These regional differences underscore the importance of considering location when evaluating potential earnings as an EA.
• Moving down to Southern California reveals EA salary numbers that are as sunny as the beaches.
• Self-employed enrolled agents who operate their own accounting agencies can expect more earnings than their counterparts at large brokerages and corporations.
• So, to determine how lucrative a career as an enrolled agent can be, use this information to learn more about the enrolled agent salary.
• With dedication and strategic career development, EAs can build rewarding careers as trusted tax professionals.

EA salary potential is influenced by various factors including experience, role, and location. While EAs may not command the same salaries as CPAs, their specialized tax law expertise is highly valuable in today’s complex financial landscape. Entry-level tax preparers make less, but can expect their salary to increase after gaining several years of experience, and gathering more clients.

Firms are looking to fill entry-level positions, so recent accounting grads and young professionals are in a great position to get their first accounting job. Firms are especially interested in candidates with technology skills that can be applied to growing areas like cloud systems and data analysis. Managers are looking for new ideas and are prepared to provide the necessary on-the-job training to prepare new hires for success.

• Additionally, clients often prefer to work with a single individual or a small team for the sake of efficiency.
• It’s important to note that these figures are averages and individual salaries may vary based on factors previously discussed.
• If you dislike the cold and aren’t comfortable in a big city, you don’t have to live in New York or Chicago to make a living as an Enrolled Agent.
• While EAs may not command the same salaries as CPAs, their specialized tax law expertise is highly valuable in today’s complex financial landscape.

They handle balancing the budget and must use budgeting and auditing software programs. Of course, having your own agency also removes any limitations on your salary. As per information provided by the Bureau of Labor Statistics (BLS), the median salary for CPAs stands at $78,000. Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact…