Are You a Commerce Graduate? 8 Reasons for Becoming an Enrolled Agent
To keep up with the fast changing pace of the business world, you need to think and observe from a young age. But we know that life is too short to do what we do not enjoy for little money.
If the field of taxation holds your deep interest, we have an aspiring career choice for you.
The truth is, there are numerous windows widely available for a Commerce graduate beyond the few conventional options.
We are here to talk about one such career path – Becoming an Enrolled Agent (EA).
What is an enrolled agent?
The term enrolled agent represents a tax expert who enjoys representing taxpayers before the Internal Revenue Service (IRS). It stands as the highest credential awarded by the IRS in the US and is seen as quite rigorous. However, with guided enrolled agent exam training accomplishing this qualification is not rocket science.
Why become an enrolled agent? Is Enrolled Agent worth it?
If such questions are lingering on your mind, then this article is for you! EA can be the most rewarding and respected career choice that could bring you a culmination of achievements and future advancement.
Now, let us take an assessment of the 8 reasons why becoming an Enrolled Agent is worth a try.
1. Unlimited representation rights
There are various Enrolled Agents’ benefits to look at as an aspirant. Not only can EAs correspond to taxpayers, but also, they enjoy unlimited representation rights.
Did you know, not all tax experts have the power to represent taxpayers before IRS? This power is exclusively reserved for EAs, CPAs, and attorneys. So, if you find cracking CPA is an uphill battle, then EA can be your savior.
Both credentials come with almost equal powers, and most importantly, you can do the one thing you enjoy – Specialise in tax. It only requires you to maintain the continuing education (CE) and Preparer Tax Identification Number (PTIN). If you adhere to this, you can handle any whatsoever tax matters.
It doesn’t matter which US state you are in; you can represent any taxpayer in any American state. Hence, with unlimited representation rights, you no longer have to turn away from any of your clients.
2. Prepare more complicated returns
If you are talking about Enrolled Agents’ benefits, then it is vital to acknowledge your earning potential.
As they handle more complicated returns, they possess the caliber to do more things for their clients.
They can back clients with audits, represent them at IRS appeal offices, handle taxes, prepare and file documents for clients, represent them directly in IRS, attend hearings and conferences for taxpayers, and give consultations to third parties on tax matters.
So, is Enrolled Agent worth it? Indeed, we can say a big Yes! After earning this prefix, you no longer have to ward off clients because of a lack of clearance.
3. Increase your credibility
Should I become an Enrolled Agent?
It is one of the highly credible tax certifications. EAs hold the power to represent assessees before the IRS.
This entails clearing a three-part grueling exam, and if you do, it proves your commitment to become a trustable tax preparer.
Further, the IRS empowers EAs with a plethora of tools unavailable to most tax preparers. EA credential is a federal designation given by the US Department of Treasury.
Unlike CPA, which confines specific states, EAs can work across states without hassles.
4. Be in good standing with IRS
The IRS has rigorous exams and rules for Enrolled Agents. Hence, the position acclaims your in-depth knowledge and expertise with the changing tax laws and IRS regulations.
Since it is the highest accounting credential awarded by the IRS, you don’t have to be concerned about your position in the National Database list or the IRS Annual Federal Tax Refresher Course, as your designation extends to cover both of them.
So if you are thinking about why become an Enrolled Agent, then here is your answer – your future can be secured with this eminent qualification.
5. Verified tax expertise
As we mentioned before, an Enrolled Agent can do almost everything in the world of tax preparation.
According to the Department of Treasury, the EA qualification finds legal recognition and respect in all 50 states.
Besides, the EA credential stands for sheer professionalism and mastering accounting abilities. They uphold the stringent ethics and standards regulated on the federal level.
On the contrary, when the scope of CPA is more limited to certain jurisdictions, an Enrolled Agent enjoys limitless powers. Moreover, EA covers tax affairs exhaustively in comparison with CPA.
Are you still puzzled about Enrolled Agents benefits? Let us confess!
If you are passionate about handling tax matters, then you are at the right place. When CPA denies assistance, you can extend a helping hand and efficiently manage any tax or complicated affairs without distress.
6. Limitless earning potential
So, why become an enrolled agent? Here is your answer – High Pay!
Because of the complex nature of work, Enrolled Agents are in huge demand. Without a hinge of doubt, the salary of an EA may surprise you!
Roughly we can divide the earning potential into three categories – entry-level, mid-level, and senior. The merit depends on your location and experience.
An entry-level candidate usually manages tax and prepares tax returns for businesses. As a result, you can easily earn up to – $8-$24 per hour.
For a mid-level practitioner, the hourly pay may vary between $12 to $55. It remains subjective on the strength of your belt of experience. They prepare and review tax returns, follow up tax invoices, organize bank reconciliations, advice, and give information to external auditors, and so on.
If you have a minimum of 5 years of experience, then you are eligible to be recognized as a senior-level Enrolled Agent. They relish a pay between $66,000 and $127,000 annually. They possess a wide array of experience in tax consultation, planning, and training. They also prepare tax returns, make tax accounting reconciliations, and many more.
7. Recession-Proof Job Security
When you are at the turning point of your career, you don’t have to do a job that harnesses safety.
Luckily, Enrolled Agents’ benefits come with compelling job security that is strong enough to withstand the economic cycle.
There is a reason why we call EA 100% recession-proof. When the economy falters, every business needs financial professionals to cope with the tough times.
As you know, any business entity or individual cannot escape from the tax grids. Even when the economy cuts non-essential expenses, tax is something that one cannot evade.
In addition to that, the tax laws keep changing their pace, and as long as it remains in that way, EA will enjoy unparalleled job security.
What if the economy is healthy and stable? Well, then too, an Enrolled Agent can thrive! As IRS is increasing the examinations by each year, people need assistance with EAs now more than ever.
8. No demanding requirements
As you have just completed your commerce graduation, it is ideal to become an Enrolled Agent, considering its no demand requirements.
You do not want to have specific experience to pursue this career. All you need to meet are three criteria:
- Obtain a PTIN – PTIN or Prepper Tax Identification Number is a must-have to practice tax-related affairs. This step is easy, as you only need to signup to the IRS website and create an account to get one.
- Pass EA exam/ Have 5 years of IRS experience – Next, you need to clear Special Enrollment Examination (SEE) on federal taxation. It is a three-part exam with 100 multiple choice questions each and should be answered within 3 hours.The pass rate of an Enrolled Agent exam is between 61-86%. If you have possess more than 5 years of experience in applying and interpreting the Internal Revenue Code, you have to take the exam to become an EA.
These apply to candidates who handled these 7 positions
- Appeals officer
- Special agent
- Revenue officer
- Revenue agent
- Tax specialist
- Tax law specialist
- Settlement officer
- Apply within one year – Once you clear the exam, you need to apply to become an EA within one year of passing.The application process roughly takes 60 days, and by this time, the IRS will also check your tax compliance.
After commerce graduation, most students choose traditional professions like CPA. Only some take bold decisions to become an Enrolled Agent.
As we discussed here, Enrolled Agent benefits exceed your predictabilities. If you are muddled about the question, is Enrolled agent worth it? We assure you, it truly is worthy of your efforts!