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Both certified public accountants and enrolled agents are authorized to represent taxpayers before the IRS. Either one of these accounting professionals can prepare complex tax returns, work on collection matters and handle tax appeals for their clients or employers. Certified professional accountants have various employment options. As we noted above, the range of job roles in either of these industries is vast, and CPAs are in demand in locations around the world. After completing their degrees, accountants can take the CPA exam to earn licensure. Some professionals also pursue certifications to work in specialized tax-related subfields. For example, tax accountants can also become enrolled agents , which allows them to represent clients before the Internal Revenue Service .
You may not be paid quite as well as if you worked in the private sector, but you may enjoy knowing you’re working for an entity meant to serve the public. The income potential for EAs tends to flatten out over time with peak earnings to be around $60,000. If you are a partner in a CPA firm or a CFO for a conglomerate, you could easily make six figures. People who don’t have the resources to pursue a taxation attorney often hire EAs instead of civil resolution cases. Not only do EAs rates tend to be more affordable, but they can also offer their tax law expertise to clients in tax proceedings, audit hearings, and appeals. EAs help ensure clients are treated appropriately by the IRS, work out payment plans on the best possible terms, and ensure the IRS follows laws that protect taxpayers.
Enrolled Agent (EA) or Certified Public Accountant (CPA)
You must also pass the daunting CPA Exam that has an extremely low pass rate. Earning an EA license means that the tax accountant is part of an elite group that is recognized as a tax expert. As the highest certification given by the IRS, an EA is an easy way to https://xero-accounting.net/ signal that the professional who holds the license has a very high level of tax expertise. Virtual Financial Advisors Virtual financial advisors offer financial planning services to their clients online and by phone, often specializing in a particular niche.
So, if you’re just starting out as an enrolled agent, you can expect to make somewhere between $30,000 and $40,000 annually. The IRS designates EAs, but because they represent taxpayers before the IRS, enrolled agents cannot work there.
Find out what the average Enrolled Agent salary is
EA candidates have to pass a background check, which is conducted by the IRS. Ethics are a big deal for EAs, so you need to have proof of ethical tax history. It’s important to note that in ea accountant salary the case of representing a client before the IRS, a CPA also has the privileges that an EA has. CPAs can also help with tax preparation and identifying any relevant credits or deductions.
- Enrolled agents hold federal licensure, which gives them a much broader jurisdiction.
- I am the author of How to Pass The CPA Exam and the publisher of this and several accounting professional exam prep sites.
- Tax accountant credentials like CPA licensure often require continuing education courses for professionals to maintain their credentials.
- Tax accountants can even work in government, including for the IRS.
The Internal Revenue Service, in an effort to satisfy legal requirements, confers the status of enrolled agent to qualified candidates. An individual who has been certified as an enrolled agent is then allowed to serve as an intermediary for private businesses and citizens in relation to tax questions and disputes. Enrolled agents are typically employed by businesses specializing in handling income tax resolutions or preparing tax returns. According to the Bureau of Labor Statistics, the median annual salary of a tax accountant is $79,500. However, an entry-level tax accountant can expect to make an average of around $51,000 a year that grows as experience is gained. Similarly, the higher the level of education, the more a tax accountant can expect to make. As with almost any career, the salary of a tax accountant can vary depending on experience, level of education, certification, industry, and location.
What’s the average CPA salary?
You may find a bank that offers a great salary and flexible schedule, it’s just a matter of looking at your options. You need to have 150 hours of college credit before you can sit for the CPA exam.
- For example, tax accountants can also become enrolled agents , which allows them to represent clients before the Internal Revenue Service .
- Good tax accountants are detail-oriented with strong problem-solving and math skills.
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- In general, licensed tax accountants must complete at least 120 hours of CE coursework every three years to maintain CPA licensure.
- But fortunately, you can prepare to pass by utilizing an EA review course.
Where you go to school to get your bachelor’s degree will be one cost, as well as if you continue on to get your master’s as part of the 150 credit hour requirement. Many undergraduate programs now include the necessary CPA coursework so that students can take the four-part exam upon graduation. However, while there is only one CPA exam, education and experience requirements for taking the exam vary from state to state, as do certification maintenance requirements. Those wishing to obtain EA certification must pass a three-part test, apply to become an EA with the IRS, and pass a background check. EAs must complete 72 hours of continuing education every three years to maintain their certification. State and federal governments require those who specialize in taxes to hold either CPA or EA certification.
Enrolled Agent vs CPA: Which is Better?
They also work for some of the most well-respected corporations in the country. So, to determine how lucrative a career as an enrolled agent can be, use this information to learn more about the enrolled agent salary.
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