Enrolled Agent (EA): An IRS Overview

Being a US Enrolled Agent grants professional full representation rights for all tax matters, along with federal authorization and nationwide recognition. An IRS-authorised Enrolled Agent (EA) is empowered to represent taxpayers, provide tax preparation services, and offer tax advice and advocacy. Undoubtedly, pursuing the path of a US Enrolled Agent ensures a rewarding career within the complex domain of taxation laws.  So, if you have a passion for taxation law and want to build a career in it, read on to find out how you can materialize your dreams by becoming an EA.

 

Key Takeaways

• What is IRS EA?

• Benefits of Becoming an Enrolled Agent?

• What is SEE in EA?

• EA Course Syllabus

What is IRS EA?

An enrolled agent is an IRS (Internal Revenue Services) authorized tax professional. That is to say, an IRS EA is a tax practitioner whom the IRS entrusts to assist citizens with their taxes by performing tasks like tax preparation, crafting tax strategies, representing taxpayers before the IRS, and addressing any related issues thereof.

 

Benefits of Becoming an Enrolled Agent?

Now that you understand who an IRS EA is and what exactly they do, let's focus on why you should be focusing on becoming one:

Instant Results After Giving Exams in Prometric Centres:

Upon completing the EA exams at Prometric centres, individuals can swiftly access their results, providing immediate feedback on their performance and progression towards obtaining the EA designation.

Recognised as Top Tax Experts by the IRS:

The most apparent benefit of being a U.S. EA is the recognition that comes with it. Attaining an Enrolled Agent license signifies recognition as a premier tax professional by the IRS, establishing credibility and expertise in tax regulations and laws. In the practical world, this means that a professional no longer has to vouch for their competence and knowledge, as they have been a former IRS employee.

Tax Expert Demand Increases Annually:

With the economy evolving continuously, especially with the current service-model gig-based economy, the demand for professionals who specialise in taxation continues to escalate annually. It is because of the increasing number of individual and business taxpayers, evolving tax laws, and increasing complexities in tax compliance.

EAs Have 100% Representation Rights for all Tax Matters:

EAs are recognised and authorised by the IRS to represent clients in all tax affairs, enabling them to prepare tax returns and handle diverse tax-related issues proficiently.

Federally Authorised With Nationwide Recognition:

Professionals with Enrolled Agent status enjoy 100% representation rights for all tax affairs, but they are also federally authorised tax professionals with nationwide recognition. It means they are authorised to practice in all tax areas without geographical restrictions. Needless to say, Enrolled Agents specialise in taxation, ensuring clients receive professional conduct and expert assistance wherever they are located.

EAs Specialise in Tax Professional, Appeals, and Audits:

This one is more of a benefit for the clients than for an EA, as clients get to appoint a professional who specialises in tax matters, appeals, and audits, relieving them from the hassle of dealing with various professionals. It can be said that, with comprehensive knowledge and skills, EAs provide a one-stop solution for all taxpayers audited by the IRS.

No Need for Extensive Qualification

Unlike most professional courses, students are not required to have extensive qualifications or experience requirements to enrol in the course. Aspiring enroled Agents must have completed +2 (12th Standard) and obtain a preparer tax identification number (PTIN) to enrol in the course. This requirement for a very basic qualification enables several deserving students to build a solid future as an IRS EA.

In summary, becoming an IRS EA unlocks doors to diverse industries within the tax-related landscape, including tax consulting, preparation, advisory roles, and unlimited rights to represent taxpayers. To become an EA, you must obtain a preparer tax identification number and be aware of the rules of professional conduct.

What is SEE in EA?

An IRS EA is a specialisation profession for which the students qualify through "IRS EA SEE" or "Enrolled Agent Special Enrollment Examination." National Association of Enrolled Agents requires Enrolled Agents to complete a three-part examination, each part of which focuses on a niche that enables professionals to have a tight grasp of the various aspects of taxation laws, rules, and regulations.

All three examinations are 100% objective, totaling 130 marks. To qualify for each exam, aspiring Enrolled Agents are required to score at least the passing score currently set at 105. The students must complete the EA Exam within two years of the first examination.

 

EA Course Syllabus

As already discussed, the IRS EA course is divided into three parts. Here is a brief run-through of the three parts to help you understand them better:

Part One: Individual Level

The first part of the examination consists of Individual Taxation. It includes all there is to know about the different aspects of laws related to individuals, including their tax brackets, maximum decisions available to them, due dates and respective forms, etc.

Part 2: Business Level

The second part focuses on Business taxation. As the name suggests, this part deals with the intricacies of business tax laws, from tax rates to disclosures to obligations and liberties. This module is curated considering the various business forms, from big corporate organisations to smaller partnerships and firms.

Part 3: Representation, Practices, and Procedures

Then comes the final part, Representation, Practices, and Procedures, which equips the professional with thorough knowledge of various procedures to enable them to represent their clients in front of the IRS.

IRS requires Enrolled Agents to take continuing professional education every three years to stay updated on any changes to the IRS website.

Jobs After EA

EAs get access to diverse job opportunities after gaining IRS experience. With a starting package of around INR 3 lakhs for freshers and INR 20 lakhs for seasoned professionals based on their experience and skill levels, the pond is full of possibilities. Even in niche practices, enrolled agents may nitpick from a buffet of options. Let’s discuss some of the top job roles you can get as an EA:

Tax Consultant

One of the most sought-after careers by an IRS EA is serving as a Tax Consultant, as this position involves the most essential element of tax practice; Enrolled Agents advise individuals and businesses on various tax-related matters on behalf of the IRS. With their expertise in taxation laws, IRS EA can efficiently perform their expected jobs, like optimising tax strategies, guiding compliance issues, etc.

Tax Preparer

Moving further, IRS-enrolled agents offer services as tax preparers. This is because tax preparation is one of the core competencies of any IRS EA. It gives them an upper hand compared to other professionals trying to establish a niche as a tax preparer. Further, talking about the role itself, as a Tax Preparer, an IRS EA is responsible for accurately preparing and filing tax returns for individuals, businesses, and other entities.

IRS Representative

IRS representation is inarguably one of the most fulfilling aspects of being an IRS EA, as it is both financially rewarding and a professional high in the taxation community. While the job description is simple: as an IRS representative, EAs may represent their clients and practice before the IRS. An IRS EA is entrusted with the massive responsibility of protecting clients' rights and interests. They are required to report to the IRS, negotiate settlements, and resolve disputes.

Conclusion

In conclusion, the Enrolled Agent profession is full of opportunities for those passionate about taxation law. Becoming an enrolled agent promises professional success and personal fulfillment in a dynamic field. With ample room for growth and advancement, this journey offers abundant prospects for those willing to dedicate themselves. Are you ready to unlock your potential? Enrol in our certification course at NorthStar Academy today. The top, most experienced mentors provide end-to-end guidance and support for assured success.

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