In 2014, the average enrolled agent earned $31,983 annually, but today, they earn $35,171 a year. That works Accounting for Churches out to a 4% change in pay for enrolled agents over the last decade. Different specializations, such as tax preparation or financial consultation, may command varying compensation levels.

See what you can earn as an Enrolled Agent

On-site daycare could save thousands of dollars and dozens of hours in commuting each year. They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues. They must stay up to date on relevant tax laws and often communicate across departments to ensure the entire firm is complying with accounting procedures.

• In such a case, it is crucial to determine the amount of tax that the taxpayer has to pay.
• Large firms are willing and able to pay a premium to attract top talent.
• They are widely accepted anywhere in the US because of their high level of expertise, strong work ethics, and sense of confidentiality.
• Tax managers handle all the tax reporting and compliance with local, state, and federal tax laws for an organization.
• Moving down to Southern California reveals EA salary numbers that are as sunny as the beaches.

Wage gap by gender, race and education

• For instance, in California, the salary will be comparatively higher than any other location in the US.
• While that number is large, most of those firms are small agencies that handle relatively few clients compared to the big competition.
• For example, in Phoenix, a senior tax consultant with an enrolled agent designation and over 5 years of relevant experience can earn over 6 figures at a regional firm.
• Earning an EA confirms to clients the tax knowledge that you have, and keeps you up to date every year on any changes in taxation.

They also need to meet the continuing education requirements, which should be 72 hours every 3 years or 16 hours every year. They should review their credit chart frequently and keep updated contact information. Urban centers like New York City may offer higher salaries compared to smaller towns, following basic supply and demand principles. It’s really a personal choice what size company you want to work for, but you should consider benefits that can affect your quality of life. enrolled agent salary Completing the AFSP is not nearly as comprehensive as receiving an Enrolled Agent designation, and you do not have as many rights as an EA. However, it is vastly cheaper than that of preparing and sitting for the EA exam, and takes much less time to complete.

Enrolled Agent Salary by City

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. 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. For more information about our services and how we can assist your business, please don’t hesitate to contact us.

Entry-level salaries for EA agents

For example, a small enrolled agent-run firm in rural Nevada could expertly serve clients in New York, California, or Alabama. Therefore, the ability to expand your client base beyond state borders is an advantage enrolled agents have over CPAs. Along with normal balance details regarding how to gain the enrolled agent status, it is equally important to have a clear idea about the salary structure. Since this option is gaining a lot of value as a career choice, candidates need to remain updated about the continuously changing legal and taxation landscape globally. However, salary will depend on the type and years of experience and also the location of their job.

Example #2

The lowest average enrolled agent salary states are Virginia, Tennessee, and West Virginia. Enrolled agent salary is impacted by location, education, and experience. These regional differences underscore the importance of considering location when evaluating potential earnings as an EA. It’s advisable to research local salary trends for a more accurate understanding of earning potential in a specific area.

• Similar to having a corporate attorney, having an enrolled agent on staff helps many companies stay on top of their complex tax issues.
• For example, a small agency that specializes in escrow accounting may not need an enrolled agent.
• Additionally, clients often prefer to work with a single individual or a small team for the sake of efficiency.
• It’s important to consider one’s particular niche when evaluating earning potential.
• The EA exam was designed to produce only the most qualified and competent enrolled agents.
• In order to become an enrolled agent, you must satisfy the EA requirements of Treasury Department Circular 230.

Here, the agent would decide this based on the rules of taxation in the US. Compare enrolled agent salaries for individual cities or states with the national average. Compare enrolled agent salaries for cities or states with the national average over time.

According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. The Enrolled Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals. There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam. But the fact that smaller firms have to specialize can be both a blessing and a curse for enrolled agents.