self-employed enrolled agent salary

Whether you are a corporation or an individual, EAs are specialists in tax issues of all types. Tax directors create and implement a firm’s tax strategy. 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.

self-employed enrolled agent salary

The IRS allows taxpayers to amend returns from the previous three tax years to claim additional refunds to which they are entitled. An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service. A tax accountant is a professional who works with clients to produce tax return documents that follow tax laws and regulations while keeping them updated on their return information.

Tax Attorney vs. Enrolled Agent

For becoming an Enrolled Agent, the candidates must get the PTIN from IRS, pass the SEE on three parts, or have worked for five consecutive years IRS. A background check will be conducted based on personal compliance once the applicants get enrolled under Form 23. To qualify for the renewal, the individual must have completed 72 hours of CPE , including two hours of professional conduct in three years. Also, they must renew PTIN within the period for the next renewal. Although pursuing your CPA may look more profitable at first glance, thanks to the increasing demand for enrolled agents, the EA’s earning potential increases faster than the CPA’s.

self-employed enrolled agent salary

Just to give an idea about just how prestigious an EA is, an Enrolled Agent is the highest credential which is awarded by the IRS to any professional. Obviously, this can vary, but generally you’ll find that CPAs do the majority of their work for various public accounting firms in Los Angeles, or other cities nationwide. This category is used to report the price of inventory. It includes both physical and virtual products. For instance, if you sell online advertising, the cost of acquiring the digital ad space could be listed here. The net profit on line 31 of the Schedule C carries to Schedule 1 of the 1040 and Schedule SE to calculate the taxes you owe. Use our quarterly tax calculator to figure out exactly how much you should pay by the next estimated due date .

Enrolled Agent

You are required to meet government requirements to receive your ITIN. Sample test questions are also available as examples of the types of questions that may appear on the examination. Being better prepared for the test experience will allow you to perform better the day of your test. When studying for the examination, you may wish to refer to the Internal Revenue Code, Treasury Department Circular 230, IRS publications, and IRS tax forms and their accompanying instructions. Circular 230, current and prior year versions of IRS publications, forms and instructions are accessible online at You may also wish to search the internet for commercially available materials and preparation courses in preparing to take the SEE.

  • As a CPA, Accountant, Enrolled Agent, or other third party, you can electronically file W-2s on behalf of your clients.
  • As previously stated above, enrolled agents will need to pass the three-part test or have at least five years of experience working for the IRS.
  • A separate appointment must be made to take each part of the exam.
  • Under the IRS Restructuring and Reform Act of 1998, enrolled agents maintain limited client privilege.
  • There is no education requirement, once you have received your Treasury Card.

As such, enrolled agents can work with individuals, partnerships, corporations, estates, trusts, and any other entity with tax-reporting requirements. Unlike CPAs or attorneys, IRS enrolled agents always specialize in taxation. Accounting and law firms, banks and private practices, are just a few examples of where enrolled agents are needed. Offer valid for tax preparation fees for new clients only.


The average salary of a bookkeeper is $41,846.Generally, they work with businesses to ensure that decisions made are economical and safe to keep the overall finance under control and tight. The position does not revolve around taxes, but it is beneficial to have experience in tax planning. The national average salary for an EA is above $50,000, including commission and bonus.

How much does an Enrolled Agent make in Illinois?

$41,282 is the 25th percentile. Salaries below this are outliers. $61,493 is the 75th percentile.

So, out of an Enrolled Agent or CPA for business tax preparation, who should I choose? When deciding on whether to hire a CPA or EA for tax preparation, it’s important to weigh up the pros and cons of each and to consider your own circumstances. Business advice – Finally, despite them specializing in finances and accounting, CPAs can also offer expert knowledge and guidance enrolled agent salary for business owners. They’ve been in the business a long time and have worked with plenty of businesses over the years and as a result they’re in the perfect position to offer you useful business advice. CPAs possess the necessary skills, training, and expertise to handle all manner of business-related issues such as complied, reviewed, audit financial statements.

Rapid Vehicle Return Agent

The largest firms in the country pull in billions of dollars in revenue annually and employ tens of thousands of people. On the other hand, the smallest successful brokers and agents typically see less than a million dollars come through their doors each year.

You can also represent estates, trusts, corporations, and partnerships. Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.

Enrolled Agent – Learn IRS Representation

Knowing how the IRS operates is a massive benefit. As we mentioned earlier, as Enrolled Agents focus solely on taxes, many often consider them to be the more viable option, though again, it depends on your circumstances. CPAs also not only specialize in services relating to other financial matters like auditing and planning.

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