Are Enrolled Agents in Demand in 2025?
TABLE OF CONTENTS
- Introduction
- Why Become an Enrolled Agent
- The Demand for Enrolled Agents in 2025 and Beyond
Outlook for Enrolled Agents Today and in the Years to Come
Opportunities Beyond United States Taxes
Career Paths - Conclusion
- FAQs
INTRODUCTION
Enrolled agents have earned the privilege to represent taxpayers before the Internal Revenue Service or the IRS. Enrolled agents either pass a three-part comprehensive IRS test that covers business and individual tax returns or through experience gained as a former employee of the IRS or the Internal Revenue Service. The Enrolled Agent certification is the highest credential given by the IRS.
Persons who obtain this elite status should adhere to ethical standards. EAs have to complete 72 hours of continuing education every three years. The same as CPAs and attorneys, enrolled agents have unlimited practice rights and what types of tax matters they can handle, such as tax representation, tax planning, and more. The certification is a great way to boost your career, help you become an expert in tax law, and enhance your income potential, making it a truly valuable credential nowadays.
WHY BECOME AN ENROLLED AGENT
Why become an enrolled agent? There are just so many reasons why. Some opt to become an EA because they may be looking for a career change and being an enrolled agent is a great option nowadays. Others may want to boost their earning potential or learn more about tax law. Below are compelling reasons why becoming an enrolled agent is for you.
Career Versatility
Becoming an Enrolled Agent or EA offers a huge array of career opportunities. You can work in different scenarios, which include accounting firms and government offices, or establish your tax consultancy firm. Whatever your preference may be, the EA credential opens doors to different career paths.
In-Demand Expertise
The world is increasingly becoming virtual. The remote work trend has become widespread and it means that numerous professionals are considering careers that allow more flexibility. An enrolled agent is federally licensed and could practice in any state regardless of where they are from. Although it’s specifically for US tax, a global economy means you probably can find work as an EA almost anywhere. The ability to practice anywhere means more flexibility compared to other accounting certifications.
Ethical Standards
Bound by Circular 230, an enrolled agent is held to high ethical standards. The circular is a set of regulations requiring EAs to act in a professional ethical manner while representing clients before the Internal Revenue Service. The code of conduct, additionally, instills trust and credibility in both clients and peers, which is paramount in the financial industry.
Competitive Income
The average annual pay for an Entry Level Enrolled Agent in the United States is $52,565 per year as of Nov. 21, 2024. Those who have been working as enrolled agents for some time can average a salary of $71,000 per year. The EA certification opens up opportunities to work in various roles in different industry verticals, thus the earning potential is bright.
Lesser Requirements than becoming a CPA
Compared to the CPA, obtaining an Enrolled Agent license is less strenuous. There are no education or experience requirements. After passing the exam and the IRS background check, you can concentrate on tax planning and tax preparation without having to worry about jumping through the stumbling blocks to become a certified public accountant.
THE DEMAND FOR ENROLLED AGENTS IN 2025 AND BEYOND
Business and finance globalization has increased the demand for tax professionals with international expertise. The demand for enrolled agents is driven by the growing number of people and organizations with tax obligations in the USA. Thus, a lot of professionals nowadays are seeking enrolled agent certification to enhance their credentials and expand their practice.
Outlook for Enrolled Agents Today and in the Years to Come
The expansion of the Enrolled Agent landscape depends on the demand for tax services and regulatory modifications. However, whatever the yearly budget plan may be and how the economy performs, there will always be a great demand for assistance with tax preparation and IRS proceedings.
- Digitization. Taxation is dynamic, and staying updated with the latest trends is crucial for an enrolled agent. Individuals and businesses are increasingly looking for experts and professionals who can provide services using software and platforms to navigate and address tax-related issues most effectively. Thus, the demand for EAs will continue to rise.
- Job Prospects. The certification offers various job prospects, spanning roles in tax offices, law firms, accounting firms, corporations, state government agencies, and so on. These organizations seek out the services of enrolled agents. Moreover, EAs can also venture into establishing their practices and boosting their earning potential.
Opportunities Beyond United States Taxes
The enrolled agent certification goes far beyond US tax preparation. Some career choices to consider are the following:
- Independent Practice
Enrolled agents with passion and skills in entrepreneurship could build their own tax practices not just in the United States but also in other countries, such as India. Moreover, they could cater to a particular clientele with a focus on American citizens living in other countries and US companies operating in foreign countries. - Foreign Account Tax Compliance Act (FATCA)
The act mandates Indian financial companies to report on the financial transactions of US citizens and residents. EAs leverage their in-depth understanding and knowledge of US regulations and taxation as well as reporting requirements to ensure compliance. Moreover, BPOs and KPs can benefit from having an enrolled agent on their staff to ensure seamless compliance.
Career Paths
- Organizations Big and Small. Big and small organizations are increasingly looking for enrolled agents to help them in tax planning and tax compliance. Small and big companies serve numerous clients and provide various services, thus, there is always a need for them to have an enrolled agent in their staff to deal with tax matters.
- Law Firms. Career opportunities await enrolled agents for internal tax processing and part of their service offering to clients. Moreover, law firms may also hire EAs to take on the important task of representing clients before the IRS.
- Banks. Since banks should adhere to stringent tax compliance and government regulations, they also provide great career opportunities for EAs. In a bank setting, an enrolled agent facilitates tax planning, processes, compliance, and reporting.
- Consultant/Entrepreneur. EAs have the legal authority and skillsets to open their tax firm or take on clients on a freelance basis. This means you become your boss, define your rates, work on your hours, and choose projects.
- Government. For EAs who love serving clients and helping them navigate their tax matters, working in a government agency is a great career opportunity. Enrolled agents are authorized to work on staff with a Department of Revenue agency and the IRS.
CONCLUSION
The demand for Enrolled Agents is growing on a daily basis. It’s safe to say that now is the right time to become a certified enrolled agent and earn high pay and career growth potential. If you’re thinking about becoming a licensed EA, there are review courses that lead you in the right direction in your career journey. These courses offer an extensive curriculum and access to live interactive classes, top-notch study resources, mock tests, and many more.
FAQs
Q. Why become an Enrolled Agent?
Ans. An enrolled agent has unlimited representation rights. An enrolled agent is a promising career option for many as the demand is growing daily to meet the evolving requirements of individuals and organizations.
Q. How do I become an Enrolled Agent?
Ans. You have to obtain a preparer tax identification number, apply to the Special Enrollment Examination, and pass all 3 parts of the exam. However, some former IRS employees under their experience, may be exempt from the examination requirement.
Q. How much does the special enrollment exam cost?
Ans. The fee is $259. Moreover, it is non-transferable and non-refundable.
Q. Do enrolled agents have continuing education requirements?
Ans. Enrolled agents, in general, should have a minimum of 72 hours every three years per enrollment cycle. Each year, a 16-hour minimum continuing education must be earned, two of which are on ethics.
Q. How do I prepare for the exam?
Ans. There are several references, including IRS publications, IRS codes, tax forms, Treasury Department Circular 230, and more. The IRS has a list of approved CE providers and some of them offer exam preparation courses. However, the IRS does not make recommendations as to any particular provider to choose.
Q. How many questions are there?
Ans. For each examination part, there are 100 questions.
Q. Is the Enrolled Agent examination offered year-round?
Ans. The EA examination is offered from May 1 to the end of February of the following year. No examination is offered during March and April because these months are allocated to update the exam with the most recent tax law.
Q. What is the Passing Score?
Ans. The scoring method is determined by the IRS following a scoring study. IRS representatives established a passing score for those who meet the minimum qualifications. The passing rate or score is 105.