Certification as an enrolled agent has a slew of advantages. The certification enhances your profile, offers new professional opportunities, attracts employment, and instills trust in your accounting skills. Whether you already work as a tax preparer or accountant or want to join the area of tax preparation, being an EA can lend legitimacy to you as an employee or to your business.
An enrolled agent who is federally certified is allowed to represent taxpayers in collection, audit, or appeal matters before the IRS. Licensed enrolled agents are authorized by the National Association of Enrolled Agents (NAEA) to advise, represent, and prepare tax returns for individuals, businesses, partnerships, estates, and trusts, as well as any other information required by the IRS.
What Is the Definition of an Enrolled Agent?
An enrolled agent (EA) is a tax professional who has been authorized by the United States government to represent taxpayers in IRS-related issues (IRS). EAs must pass an examination or have adequate experience working with the IRS, as well as pass a background check.
- Tax professionals with the IRS’s top certification in the field have earned the title of Enrolled Agent.
- An Enrolled Agent (EA) earns the right to represent taxpayers before the Internal Revenue Service (IRS) by Passing a three-part exhaustive IRS examination covering individual and corporate tax returns
Benefits of Becoming an Enrolled Agent?
1. Earning Potential:
Once you become an enrolled agent, you may handle all of a client’s tax preparation requirements. Because you are qualified to debate tax law, conduct IRS audits, interact with the IRS collections department, and file appeals, you may offer a comprehensive range of services.
2. Variety of Skills:
In the realm of tax preparation, an enrolled agent is capable of virtually anything. They may assist with collections, answer customer inquiries, and submit appeals.
3. National Credentials:
The initials “EA” after your name denote a federal designation conferred by the United States Department of the Treasury. In other words, it entitles you to employment across the nation. In comparison, CPA licensing is state-specific and subject to limits and restrictions. Clients are aware that enrolled agents may do business across state borders without difficulty.
4. Certified Expertise:
The designation “EA” denotes the highest degree of professional competence in the area of tax preparation.
5. Job Stability:
Governments will continue to impose taxes in the foreseeable future, which means that, as an EA, you will continue to get work from individuals, tax preparation companies, law firms, accounting firms, and all manner of businesses. Almost everyone must pay taxes in some form, and the constantly evolving tax law provides enrolled agents with further job stability.
To prepare for any exam component, candidates must choose a testing facility that offers the kind of training that best prepares them for the exam. Due to the fact that there are numerous exam sections, candidates must ensure that they enroll in the appropriate courses in order to get the highest possible score on their test.
To choose a reputable testing facility, consider the following factors:
- The cost of the course
- The duration of the course
- Comments from past students
- Test-specific facilities such as proctored paperwork
A registered agent must pass the two sections of the test. After passing the examinations, the agent will get a numerical license number and will be eligible to apply for a license.
The Process of Becoming an Enrolled Agent (EA)
If a person wants to become an enrolled agent, a number of criteria must be fulfilled. The procedures necessary to get the EA title are discussed below.
1. Register for an IRS Account:
Visit the IRS website and create an IRS account
2. Submit IRS Application:
To submit an IRS application, a person must provide information such as their name, residence, date of birth, and any pending criminal convictions or tax obligations
3. Acquire PTIN Online:
If a person does not have any pending convictions or tax liabilities, they will be instantly issued a Personal Tax Identification Number (PTIN)
4. Apply for a Special Enrollment Examination (SEE):
Prior to taking the test, it is suggested that people enroll in a SEE course that educates them on the three components of the SEE exam
5. Register for and Pass the SEE Test:
When people are ready, they must register for and pass the SEE exam, which is divided into three sections: persons; companies; and representation, practice, and processes
6. Obtain IRS Experience:
After passing the exam, all EA exam-certified people are required to gain five years of experience working with the IRS
7. Apply for Enrollment:
After completing the experience criteria, people must apply for enrollment to complete the certification process. Applying for enrollment entails conducting background checks on applicants, as well as obtaining training, licenses, work experience, and educational records
8. Continuing Education:
Once a person has earned the EA designation, he or she must retain the title by fulfilling certain criteria
The Advantages of Enrolling as an Enrolled Agent (EA)
Although becoming an EA is a lengthy and arduous procedure, it offers many advantages, including the following:
- Wages that are competitive
- Occupational security
- An employment market that is always expanding
- Maintaining good status with the IRS does not require a degree
- Representation rights in perpetuity
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