IRS Enrolled Agent: Requirements, Benefits & Career Outlook

An Enrolled Agent (EA) is an expert representing taxpayers before the Internal Revenue Service in various tax matters. It is a great choice for anyone starting a career in taxation or looking to advance. 

This blog discusses the requirements, benefits, career outlook, and continuing education for Enrolled Agents. It also explores various other work profiles for EAs.

Enrolled Agent Status and its Requirements

To pursue a career as an Enrolled Agent, you must fulfil the eligibility criteria and complete a formal enrollment process. This process involves passing the EA exam and background verification.

Special Enrollment Exam and Eligibility

The Special Enrollment Examination (SEE) is a three-part exam. It covers all aspects of taxation, such as individual and business tax, as well as representation, practices and procedures. You must take and pass all the sections of the exam. Each level has 100 multiple-choice questions, out of which only 85 are scorable. 

The certification allows candidates to represent their clients, prepare a tax return, and practise before the IRS. The following are the key eligibility criteria:

• Education Requirements: You don’t need any accounting degree or work experience to become an EA. To be eligible for the exam, you must pass your 12th and obtain a Preparer Tax Identification Number (PTIN).
  

• Pass the Special Enrollment Exam: You must pay the exam fee and clear all three parts of the exam within a two-year window. The exam window for 2025 is open from May 1, 2025, to February 28, 2026.
  

• IRS Background Check: The IRS reviews the applicants' tax compliance history for a suitability check.
  

Circular 230 is officially known as Treasury Department Circular No. 230. This publication outlines the regulations for individuals authorised to practise before the IRS, like attorneys, certified public accountants (CPAs), and enrolled agents. It provides the outlines for professional conduct you must adhere to as a tax professional.

Enrollment Process and IRS Approval

Once you successfully pass the SEE, you must apply for EA status through the Internal Revenue Service (IRS). Here’s how the application process works:

1. Submit Form 23: This is the official application for EA enrolment.
   

2. Pay the Enrolment Fee: A non-refundable processing fee is required. The application fee for the IRS is $140.
   

3. IRS Review: Ensure you meet ethical and legal standards in the background check by the IRS.
   

4. Receive Your EA Certification: After approval, you will receive an official certificate to start your practice as an EA. To renew your EA licence, you must fill out Form 8554.
   

Benefits of Becoming an Enrolled Agent

EA Designation and Career Advantages

Enrolled Agent benefits make this certification highly valuable for tax professionals. The key advantages include:

• Unlimited Practice Rights: You can represent taxpayers before the IRS. You can also help them in audits, appeals, and collections.
  

• Higher Earning Potential: EAs earn more than standard tax preparers because of their expertise.
  

• Job Security and Demand: EAs are highly valuable owing to the consistent demand for tax professionals.
  

• Flexibility and Independence: Many accounting firms and corporations seek EAs. You can even work independently as a tax consultant for individuals or businesses.
  

• Global Recognition: EAs work primarily in the U.S., although some international tax firms also hire EAs for U.S. taxation roles. Enrolled Agents are unrestricted as to which taxpayers they can represent and can thus work globally.

Career Outlook for Enrolled Agents

The IRS Enrolled Agent career allows you to work in various industries. Public accounting firms, corporate finance, and tax advisory services are the major industries employing EAs.

Taxation Industry Demand and Growth

The demand for tax professionals is growing due to increasing tax complexities and IRS regulations. Here are a few reasons why EAs have excellent job prospects:

• Evolving IRS Regulations: The continuous changes in tax laws create a constant demand for knowledgeable tax professionals.
  

• Increased Taxpayer Assistance Needs: Businesses and individuals always need expert guidance to file accurate tax returns.
  

• Recession-proof Career: Economic conditions do not affect your career, as taxes must always be paid.
  
  

Opportunities with the National Association of Enrolled Agents

To advance in your EA career, you also need to network and build relations with others in the tax industry. The National Association of Enrolled Agents (NAEA) offers just the right opportunity through their community of tax professionals.

• Exclusive Job Listings: Access to job postings specifically for EAs.
  

• Professional Development: Numerous workshops and training programmes to update tax knowledge.

• Networking Opportunities: Network with experienced tax professionals and potential employers.

Continuing Professional Education for EAs

The IRS requires you to complete continuing professional education (CPE) to retain your credentials.

Meeting IRS Requirements for Ongoing Learning

• Complete 72 hours of continuing education courses every three years. This includes ethics training and taxation updates.
  

• Fulfil the yearly minimum requirement. This consists of a minimum of 16 hours of continuing education each year, including two hours of ethics.
  

• Approved Providers: The CPE courses must be from IRS-approved institutions to renew your EA.
  

EAs can improve their competency by staying updated with the latest tax laws to provide high-grade service to their clients.

Job Roles and Earnings for EAs

Many Tax Career Paths and Salary Potential

This certification opens doors to various job roles, including:

• Tax Consultant: Guiding individuals and businesses on tax-saving strategies.
  

• IRS Representation Specialist: Assisting clients in IRS audits and disputes.

• Corporate Tax Advisor: Managing tax planning for corporations and large businesses.
  

• Public Accounting Firms: Working with CPAs to prepare and review tax filings.
  

• Independent Tax Practitioner: Running a personal tax practice and offering tax preparation services.
  

The earning capacity of an EA depends on the experience, work profile and job location. The general breakdown of EA salary is as follows:

• Entry-level EAs earn in the range of $50,000 to $60,000 annually.
  

• Mid-level EAs earn between $70,000 and $90,000 annually.
  

• Experienced EAs and independent consultants earn more than $100,000 in a year.
  

EAs running independent practices can achieve even higher earning potential, especially with a high-profile client base.

Conclusion

The EA certification allows you to represent your client before the IRS. Becoming an IRS Enrolled Agent is a great career choice, offering high earning potential and flexible work schedules. All these aspects make the EA credential a valuable investment in a career as a tax professional.

If you plan to prepare for the EA exam, consider joining the NorthStar Academy, which offers Enrolled Agent courses led by experts to help you clear the exam. Additionally, we help students with CMA USA exam preparation, US CMA courses, ACCA courses and CPA US courses.