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Earn passing scores on all three sections within three years. Check the SEE candidate information bulletin, answer sample exam questions, and use other references for the test preparation. When providing advice to clients, EAs must practice integrity and take appropriate measures to comply with all legal obligations. They must maintain the confidentiality of their client’s information and avoid potential conflicts of interest. CPAs know the numbers, so hiring a CPA makes sense for businesses who need trusted advisors to provide them with better and more accurate tax planning. So, you’ll spend less time earning the EA title and can, therefore, start working with clients much sooner.
Most EAs spend several years working as tax preparers before gaining this designation. If you’ve been convicted of a felony related to federal tax laws, breach of trust, or related to dishonesty, it can disqualify you. If it’s older than ten years, you may be able to enter this career. The cost to become an enrolled agent will include about $550 for the test.
Benefits of Becoming an Enrolled Agent
Learn more about H&R Block Virtual, which lets you sit back and relax while a CPA, EA or other tax professional takes care of your return. A CPA’s expertise mainly lies in accounting and auditing, but most can provide tax filing services as well. This combination is attractive to small businesses that need both audit and tax services, preferably from the same team.
However, NASBA now offers all four parts of the exam year-round with continuous scheduling. The only limit on availability is placed by the individual testing centers. This means that if you fail one part, you have the option to retake it sooner than you could before. Overall, you must pass each exam part within a rolling two-year window. In case you fail an EA exam part, you can take each section a total of four times during a single testing window .
Which is better, CPA vs ACCA?
Law firms are also small businesses which may benefit from having tax personnel on their staff to help them handle their small business taxes. They are authorized to counsel, represent, and prepare tax returns for individuals, estates, corporations, trusts, and entities with tax-reporting requirements. While a Certified Public Accountant is certified by the state, an EA or enrolled agent is federal government approved. CPA’s are also more flexible in their responsibilities as opposed to the enrolled agent who is a tax sector accounting specialist.
How many enrolled agents are there in the US?
EA Population: The National Association of Enrolled Agents states that approximately 10,000 EAs are currently practicing in the United States.
As you’ll see, the basic steps are the same, but the manner in which you fulfill the requirements differs. Let’s take a look at the CPA vs EA requirement differences. Learn more about how the exam will change in 2024 by visiting Surgent’s CPA Evolution resource hub.
Help Others with the Tax System
The job of an enrolled agent is not as well-known as that of a CPA. If you would like to specialize in income tax and desire the flexibility of working at home with your own clients, I encourage you to explore the EA path further. Since the IRS empowers enrolled agents with an unlimited right to practice on a federal level, enrolled agents can work with a client who may have filings across all states in the U.S.
Not everyone can help people with the intricate tax system, simply because they don’t have the expertise. If you have the smarts and you like to help people, then a career as an enrolled agent would be enjoyable and rewarding. Passing the Special Enrollment Examination is proof that you possess the knowledge of tax matters to instill trust in the American taxpayer. In fact, an entire organization called the National Association of Enrolled Agents exists solely to enforce the high standards for this credential. As a Certified Public Accountant, you have a much wider range of job opportunities. This is because CPAs deal with a significantly broader scope of issues.
According to Payscale.com, enrolled agents typically make between $33K to $80K a year, while CPAs make between $49K to $115K per year. Enrolled agents also have the opportunity to earn extra money during tax season. I have a reader who actually made more during those few months than he usually earns for the year in retail. Still, when we compare REG’s taxation section to the EA exam’s taxation section, we uncover quite a lot of overlap.
Interested in learning more about the salary outlook for accountants? There’s no wrong answer when it comes to deciding whether it’s best for you to study to become a CPA or an EA. Both are prestigious positions that will give you a lot of additional income per year. ea vs cpa salary When you look at the differences and similarities between a CPA and an EA, you can see that either one will help you achieve your professional goals. Small Business Small business tax prep File yourself or with a small business certified tax professional.
Why EA is better than CPA?
EAs and CPAs are both knowledgeable, experienced professionals who are required to maintain high ethical standards. The primary difference between an EA vs CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and more.
