In contrast, most CPA candidates take 12 to 18 months to pass their exams. If you remember, the EA exam includes 3 parts, https://intuit-payroll.org/ whereas the CPA Exam features 4 sections. According to PayScale, the average yearly salary for an EA is $48,987.
You may be able to skip the exam if you have five years of experience working for the IRS. Without this experience, it’s a good idea to use an EA exam prep course to study. This will help you pass the exam the first time without delay.
Accounting Exam Prep
You will also guide tax decisions and recommend client action by discussing the legal ramifications of tax matters. You will liaise with the IRS to create practical tax plans, estimation, payments, and settlements on behalf of taxpayers.
- The lower end is for those with five years of experience or less.
- You can become an EA by obtaining a Personal Tax Identification Number , passing all three parts of the IRS’s Special Enrollment Examination , and passing compliance and background checks.
- CPAs, or Certified Public Accountants, are licensed individuals with the statutory privilege to sign an audit report.
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- On the other hand, certified public accountants are licensed by their applicable state boards of accountancy.
- Having an EA in house also means small business owners can actively take advantage of tax minimizing decisions on a regular basis.
The EA exam or Special Enrollment Examination is a three-part IRS certified EA test offered by Prometric, a third-party examination vendor. You need a 75% pass rate for each section to qualify as a CPA and complete the enrolled agent vs cpa salary exam in an 18-month window. CPA licensing costs are not constant and vary depending on the state but are much higher than EA licensing fees. Successfully passing the SEE is the only requirement to earn an EA license.
EA vs CPA Salary: What You Need to Know for Your Career
You’ll want to seek out an EA for any and all tax-related issues. In fact, the IRS says they are uncontested experts on such topics. A financial advisor can help you maximize the tax efficiency of your investments and assist you in creating and carrying out a long-term plan. The EA questions are more in-depth but less varied and complicated, so they are easier.
And finally, you’ll pay your CPA licensing fees for around $150. So, if you start with the CPA Exam and struggle with REG, you can temporarily change course by sitting for the EA exam, passing it, and earning your EA title.
Financial Planner Career – Is this Career Worth it in 2022?
Once EAs have passed their qualifying exam, the federal government recognizes them as tax specialists. Typical EA responsibilities include representing business or individual clients in tax audits, tax appeals and tax collections. Additionally, EAs can also provide tax advice, tax return filing and more. Unlike enrolled agents, CPAs can only receive state licensure. Although they may choose to specialize in tax-related services, they may also work in other finance-related areas. Their work may include accounting, auditing, financial assessment, reporting, and the sale of financial products, among other tasks.
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- EAs, or enrolled agents, are tax preparers authorized to represent taxpayers before the IRS.
- CPAs are experts in a broad range of accounting and finance-related topics and are certified by a state.
- Terms and conditions apply; seeAccurate Calculations Guaranteefor details.
- The average Enrolled Agent salary in Texas is $50,469 as of August 29, 2022, but the range typically falls between $42,426 and $59,143.
Complete 72 hours of continuing education every three years. When you’re looking to hire a tax professional, you want someone knowledgeable — someone you can trust to get the job done and keep your personal information secure.
Are enrolled agents in demand?
CPAs and enrolled agents are important financial professionals in our everyday lives and share a lot of similarities. On average, you’ll spend over $1000 to earn an enrolled agent designation. Most every business would benefit from having an EA on staff. Having an EA in house also means small business owners can actively take advantage of tax minimizing decisions on a regular basis. Having your own business offers the greatest benefits while posing the largest risk. You may have unlimited flexibility, but you’ll have to earn clients to make money.