Enrolled Agent EA: Overview, History, FAQ

They must also submit IRS applications and pass background checks. Explore why tax preparers and accountants might consider pursuing the EA credential in this guide. We also cover how to become an enrolled agent and prepare for the EA exam.

It was originally established to investigate questionable and fraudulent claims that were submitted in the wake of the Civil War. Congress decided to regulate persons who were given the task of representing citizens in affairs with the United States Treasury. Most people will, https://kelleysbookkeeping.com/learn-about-real-estate-bookkeeping-best-practice/ at some point, get some kind of professional help when filing their tax return. The IRS claims that a paid return preparer looked at more than half of the 150 million individual returns filed in 2015. Many of those tax returns were filed with the help of an enrolled agent.

How Is an Enrolled Agent Different from a CPA?

Or, if you prefer to leave tax preparation and filing to a remote tax expert, consider H&R Block Virtual Tax Prep. Simply upload your documents and we’ll match you to the certified tax professional best suited to your needs. Our comprehensive service allows you to sit back and relax, while an enrolled agent or other experienced tax professional takes care of your entire return for you. In the United States of America, an Enrolled Agent (EA) is a tax advisor, who is a federally authorized tax practitioner which is empowered by the U.S. Enrolled Agents represent taxpayers before the Internal Revenue Service (IRS) for tax issues that include audits, collections. While an Enrolled Agent (EA) and a Certified Public Accountant (CPA) are skilled and authorized tax professionals.

• Enrolled Agents and CPAs are trained, experienced professionals who are held to high ethical standards.
• A certified public accountant (CPA) license, for example, allows accountants to work in auditing, accounting, and financial planning.
• As Enrolled Agents, we are licensed to work in any state and at the federal level.
• An enrolled agent is a tax professional that has been approved to represent taxpayers in matters that involve the IRS.
• Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.

We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. Finance Strategists is a leading financial literacy non-profit organization priding itself on providing accurate and reliable 20 Best Accounting Software for Nonprofits in 2023 financial information to millions of readers each year. This team of experts helps Finance Strategists maintain the highest level of accuracy and professionalism possible. On the other hand, CPA examinations have four parts, and each part costs $208.40.

Step 4: Apply for Enrollment to Practice Before the IRS and Pay the Fee

An enrolled agent’s salary can vary depending on several factors, including level of experience, client type, and the region of practice. The US Bureau of Labor Statistics lists the median yearly base salary for Enrolled Agents as $56,780. Other sources, including Glassdoor, Salary.com, and Indeed, place the average base pay in that same $50k-60k/year range.