Are you a tax preparer looking to advance your career? Or perhaps you’re considering a career in tax preparation? Either way, you’ve likely heard of the Enrolled Agent (EA) course, and you may be wondering if it’s worth pursuing. The short answer is yes, becoming an EA has many benefits, and it should be something all tax preparers aspire to. In this article, we’ll explore the many reasons to pursue your EA designation, including unlimited representation rights, the ability to prepare more complicated returns, increased credibility, and more.
What is an Enrolled Agent (EA)?
Before we dive into the benefits of the EA course, let’s briefly define what an enrolled agent is. An EA is a federally-authorized tax specialist who provides advisory services to American taxpayers about matters concerning the Internal Revenue Service (IRS). Being granted “EA” status is regarded as the highest honour given by the IRS and is legally recognized in each of the 50 U.S. states.
Benefits of the EA Course
Unlimited Representation Rights
One of the most significant benefits of becoming an EA is that you gain unlimited representation rights. Tax preparers without credentials are only able to represent clients whose tax returns they have prepared and signed. EAs, on the other hand, are able to defend their customers before the IRS in any situation, including audits, problems with payments or collections, and appeals. This is especially important as IRS examinations are on the rise, and people need representation for delinquent tax obligations or IRS collection activities.
Prepare More Complicated Returns
Because you can prepare more complex tax returns as an EA, your earning potential is substantially larger. With the proper credentials, you can provide a wider range of services, such as assisting clients with audits, representing them at an IRS appeals office, preparing and filing paperwork on their behalf, communicating directly with the IRS, representing them at hearings and conferences, and giving written advice to third parties regarding the tax repercussions of business transactions. This increased expertise and range of services can lead to more clients and higher EA course fees.
Increased Credibility
Earning an EA designation means that you have earned the highest credential in the tax industry. This shows that you have gone through a considerable amount of training and passed the Special Enrollment Examination (SEE). This increased credibility can lead to more clients, higher fees, and more job opportunities.
Be In Good Standing with The IRS
The IRS regulations on tax preparers are constantly changing. You won’t need to worry about obtaining future credentials because you will already be an EA and own them. If you are an EA, you are automatically included in the IRS National Database list of credentialed preparers; you do not need to take the IRS Annual Federal Tax Refresher Course. This saves time and money in the long run and ensures that you are always in good standing with the IRS.
Competitive Wages
As an EA, you can earn a competitive wage. The hourly rate charged by an EA fluctuates from about $12 to $50 per hour. This range is dependent on several factors, including your level of experience, location, and the complexity of the tax returns you prepare.
Job Security
Becoming an EA can provide job security. As an EA, you have a highly specialized skill set that is in high demand. This demand is likely to continue as the IRS examinations are on the rise, and more people need representation for delinquent tax obligations or IRS collection activities.
Opportunities for Job Growth
A great method to investigate job options and company opportunities that might not otherwise be available is to become an enrolled agent. Tax concerns of all kinds, including both corporations and individuals, are their area of expertise. When it comes to employment opportunities at a tax firm, a government agency, or for a CPA in the private sector, tax accountants with an EA licence are highly sought after. An EA on their CV makes it simple for someone to stand out from the competition while applying for jobs.
Good Standing with the IRS
EAs are in good standing with the IRS and are automatically included in their National Database list of credentialed preparers. This saves time and money in the long run and ensures that you are always in compliance with the latest IRS regulations.
Unlimited Representational Rights
One of the most significant benefits of becoming an EA is that you gain unlimited representation rights. Tax preparers without credentials are only able to represent clients whose tax returns they have prepared and signed. EAs, on the other hand, are able to defend their customers before the IRS in any situation, including audits, problems with payments or collections, and appeals. This is especially important as IRS examinations are on the rise, and people need representation for delinquent tax obligations or IRS collection activities.
How to Become an Enrolled Agent
Now that we’ve explored the many benefits of the EA course let’s discuss how to become an enrolled agent. The first step is to create an IRS account and submit an IRS application. Once approved, you will acquire a Personal Tax Identification Number (PTIN) and can register for a Special Enrollment Exam (SEE) prep course. The SEE exam consists of three parts: individuals, businesses, and representation, practice, and procedures. Once you pass the SEE exam, you must gain five years of experience working for the IRS and apply for enrollment. Individuals must submit an enrollment application when the experience criteria has been satisfied in order to complete the certification. Background checks, training, licences, employment histories, and education related records are all required when applying for admission.
Conclusion
Becoming an Enrolled Agent (EA) through the EA course has many benefits, including unlimited representation rights, expanded earning potential, and increased credibility. It can also provide job security, opportunities for job growth, and good standing with the IRS. While the process to become an EA is rigorous, it is accessible to a wider range of people as it does not require a college degree. If you’re a tax preparer looking to advance your career or considering a career in tax preparation, the EA course is definitely worth pursuing.
