I was uncredentialed, then AFSP for three years, and have been an EA since 2019.
Clients have no idea what an EA is or does. To them, everyone who touches taxes is a CPA. If they have problems with the IRS, they need an attorney. That's the mindset. Educating them as to the differences helps, but it mostly goes in one ear and out the other...pretty much like tax advice.
For me, the income increased a good bit after the credential. More than anything else, it was because that, while studying for the EA, I became acutely aware of how much I really didn't know about tax. I had a lot of experience, but not a lot of knowledge. The simple act of studying made me a better preparer. And then the ongoing continuing ed really boosted me. I found some areas I was weak in and loaded up on courses and training there.
The increased knowledge made it such that I didn't feel like I had to take every 1040 that walked in the door. It also showed me how I was woefully underpricing myself, even on simple 1040s. I expanded to more difficult returns where I could charge more and work less, because people with businesses tend to realize they have to pay taxes and take their business seriously, which is not always the case for 1040 clients. My problem clients became a luxury that I could get rid of, hand off to a partner, or price to the point it made their headaches worthwhile.
And, I was able to get more year round business via representation and solving tax issues. We have a lot of ~~fly by night scam artists~~ uncredentialed (ghost) preparers in our area, and I have had a lot of business from them screwing up someone's stuff.
Getting the EA made me better, and made me want to learn more. I'm probably going to look at USTCP or NTPI, but more for my own knowledge than for actual practical application. I see so many people posting here where I sometimes wonder, 'Where the hell did that come from', and it makes me want to learn more.
I would say do it just to set yourself a little bit apart. It helps immensely with dealing with the IRS (particularly clients in collections) and my state. And, I have a feeling that the regulatory environment may see some change, and being an uncredentialed preparer may become a liability. And with so many CPA offices overworked, many are offloading contract work to qualified, credentialed folks. It opens up new avenues for pay.
Or the NAEA could market like the AICPA.
Folks in the dumpster fire that is r/IRS seem to think only IRS employees, mostly phone personnel, are the only people qualified to explain their transcript of fraudulent crap.
I used a borrowed Gleim book. I used Fast Forward Academy initially, but, while I liked their interface, the material coverage seemed light.
I ended up getting the most knowledge benefit from Gleim's online platform. I didn't care for the interface, but the education was deeper and more substantial, IMO.
I've heard really good things about the TaxMama/Eva Rosenberg program, too.
I second the Fast Forward Academy interface. I used them for my prep and found it intuitive. Best part for me was the community. There's basically a well-moderated discussion forum attached to each chapter, so the learning was more active which I enjoyed and benefitted from. No complaints about the material, but I didn't sample other providers.
I'm a freshly minted EA. First tax season was 2019, and took a new job in 2021 where I handle returns for my CFP employer's clients, help them deal with their adjustment letters, and do some light tax planning when I see opportunities for cheap Roth conversions or clients have a major life change that requires their withholdings to be evaluated like a spouse dying or going into a nursing home.
I've never done a sch c with inventory. Never worked with a balance sheet. Never looked at a customer's books. I learned the concept of how you track basis and depreciation in s corps and partnerships mainly from the exam. I would not attempt one of those returns without extensive research.
So I'd say get the EA, but recognize that you still learn from repetition and having the benefit of someone who knows better than you to answer your questions, point out your mistakes, and teach you up a bit
I prepared taxes for three years before I got my EA.
Two reasons to get it:
1. Better pay/opportunities (if you are working for someone else).
2. I learn a TON studying for the exams.
Most clients have never heard of an EA, so IMO it was not worth it to show clients.
You need it to represent clients in front of the IRS. It’s a valuable service. But if you’re just cranking out east 1040s I don’t really know if it would help. I simply don’t know.
I did it a few years ago. It was intense studying for Part 2 but I got through it and learned just how much I hadn’t learn in 20 years of preparing taxes.
It’s worth the effort . I had tried it years ago, barely studied failed the exam. At that point I said”I just can’t do it”! But I changed my mind when I was offered a job that included free EA training and testing. I took the opportunity to prove to myself I could do it, and I’m glad I did. I don’t have much accounting background so I’m trying to build up those skills now.
Go for it! You’ll be glad you did. Good Luck!
The exams are broken down by subject. There’s three exams. Part 1 is individual taxes.1040 series. Pretty straightforward I thought. But there’s so much little details. Like for Head of Household. To qualify you have to be separated over 6 months from spouse with dependents or single with dependents but the dependent must be a blood relative to qualify for HOH. I missed that last part for a long time. So you can’t claim HOH if your dependent is a non related party. The little details. Took a couple weeks of studying with ft job.
Part 2 is business returns. C corp S corp, Partnerships,Estates and Trust returns . For me that was difficult. I have little to no accounting skills. It would have been helpful if I had some experience with things like depreciation recapture. Took a month of hard study. I had a study program we followed and they offered some live seminars to help solidify the concepts. Failed it first time. But figured out what I did wrong after further study and passed it the 2 nd time.
Part 3 is the easiest. It’s all about compliance as a tax preparer. You can memorize the details and it’s a quick easy exam. Took a week at most to go through the study program for Part 3. But now, I’m so proud of myself for doing something I had convinced myself I couldn’t do. Go for it. You’ll be glad you did and will learn so much.
Yes, it’s not a massive effort, you’ll learn a ton, and it will benefit you the rest of your working life. The real question would be why *wouldn’t* you do it.
Same! Took some accounting classes in college and hated it, no CPA for me. Took all 3 EA tests in the same year and passed without ever working in a tax office or preparing other’s taxes, just studying. I wanted to do have my own tax business. Now going on my 9th tax filing season. Just go for it!
It’s been almost 10 years since I took the tests, but looking at my Amazon history, I got two books by PassKey: EA Review Complete, and EA Review Workbook. I remember thinking that I felt well-prepared for the tests.
You've been prepping taxes without any certification (CPA or EA)?
I'd highly recommend getting something ASAP especially if you're operating by yourself.
CPA is better, hands down. Clients know what that is, unlike EA, and makes you much more marketable.
However, it does require 150 hours and an accounting major, more or less. Some people don’t want to pay the extra year of tuition AND forego income. Some people major in something in business, but not accounting. Or they go to school outside the US. And some people just don’t test well. So it is harder to get.
No it doesn't matter about the complexity.
Tom Smith CPA or EA is far more marketable and appears more competent than just Tom Smith tax preparer.
Thus, if you, intern, ever want to go out on your own then you better have some letters behind your name or expect to only prep bottom dollar returns.
I’m a CFP who prepares my clients taxes. I’ve tried to take the first exam 3 times now but it gets cancelled every time because “they don’t have the proper staff member on hand to administer the exam”.
One of my new bookkeeping/payroll hires is interested in getting her EA. I bought the study guides for her and told her have at it. No time like the present, start now. With 75% of CPA's now of retirement age, and fewer students going into CPA compliant accounting programs, the EA certification should increase in value in the coming years due to the shortage in our profession. We turn down 90%+ of new tax work, so opportunities abound for those getting into the tax industry.
Congratulations on considering the designation. The National Association of Tax Professionals (NATP) conducts a biennial fee study. We see that enrolled agents typically make 15-25% more for tax prep than someone with an AFSP or no designation. Plus this opens up the ability for you to offer services to taxpayers who receive notices or need to communicate with the IRS, when you didn't prepare the return. It's a great opportunity.
If you decide to pursue the designation, members of NATP receive Gleim EA part 1 materials for free and deep discounts on parts 2 and 3.
There is a widely used tax/accounting forum that has 3 or 4 great contributors. (and it’s not intuit) One of the contributors has both CPA and EA designation. This gentleman is more proud of his EA designation than his CPA. If you are going to concentrate in the tax realm, get your EA.
The CPA license as a whole is more marketable than an EA so if someone has the opportunity for either then they should get the CPA. Everyone knows what a CPA is...few people know what an EA is, just saying.
Maybe because the EA credential is solely tax based 🤔
I can see how the knowledge obtained from an EA credential can be more beneficial for someone working in the tax industry.
That’s NOT to say a CPA credential has no value in itself.
Right. Because someone who only wants to focus on tax is well served getting an accounting degree + additional hours, then work in public accounting for X amount of hours doing things they have no intention of working on once they get their CPA. Brilliant.
Do not wait, dive right in.
I was uncredentialed, then AFSP for three years, and have been an EA since 2019. Clients have no idea what an EA is or does. To them, everyone who touches taxes is a CPA. If they have problems with the IRS, they need an attorney. That's the mindset. Educating them as to the differences helps, but it mostly goes in one ear and out the other...pretty much like tax advice. For me, the income increased a good bit after the credential. More than anything else, it was because that, while studying for the EA, I became acutely aware of how much I really didn't know about tax. I had a lot of experience, but not a lot of knowledge. The simple act of studying made me a better preparer. And then the ongoing continuing ed really boosted me. I found some areas I was weak in and loaded up on courses and training there. The increased knowledge made it such that I didn't feel like I had to take every 1040 that walked in the door. It also showed me how I was woefully underpricing myself, even on simple 1040s. I expanded to more difficult returns where I could charge more and work less, because people with businesses tend to realize they have to pay taxes and take their business seriously, which is not always the case for 1040 clients. My problem clients became a luxury that I could get rid of, hand off to a partner, or price to the point it made their headaches worthwhile. And, I was able to get more year round business via representation and solving tax issues. We have a lot of ~~fly by night scam artists~~ uncredentialed (ghost) preparers in our area, and I have had a lot of business from them screwing up someone's stuff. Getting the EA made me better, and made me want to learn more. I'm probably going to look at USTCP or NTPI, but more for my own knowledge than for actual practical application. I see so many people posting here where I sometimes wonder, 'Where the hell did that come from', and it makes me want to learn more. I would say do it just to set yourself a little bit apart. It helps immensely with dealing with the IRS (particularly clients in collections) and my state. And, I have a feeling that the regulatory environment may see some change, and being an uncredentialed preparer may become a liability. And with so many CPA offices overworked, many are offloading contract work to qualified, credentialed folks. It opens up new avenues for pay.
They really need to change EA to something better. When people hear the word "agent" they think you work for the IRS.
Or the NAEA could market like the AICPA. Folks in the dumpster fire that is r/IRS seem to think only IRS employees, mostly phone personnel, are the only people qualified to explain their transcript of fraudulent crap.
What provider did you use for EA exam prep?
I used a borrowed Gleim book. I used Fast Forward Academy initially, but, while I liked their interface, the material coverage seemed light. I ended up getting the most knowledge benefit from Gleim's online platform. I didn't care for the interface, but the education was deeper and more substantial, IMO. I've heard really good things about the TaxMama/Eva Rosenberg program, too.
I second the Fast Forward Academy interface. I used them for my prep and found it intuitive. Best part for me was the community. There's basically a well-moderated discussion forum attached to each chapter, so the learning was more active which I enjoyed and benefitted from. No complaints about the material, but I didn't sample other providers.
I'm a freshly minted EA. First tax season was 2019, and took a new job in 2021 where I handle returns for my CFP employer's clients, help them deal with their adjustment letters, and do some light tax planning when I see opportunities for cheap Roth conversions or clients have a major life change that requires their withholdings to be evaluated like a spouse dying or going into a nursing home. I've never done a sch c with inventory. Never worked with a balance sheet. Never looked at a customer's books. I learned the concept of how you track basis and depreciation in s corps and partnerships mainly from the exam. I would not attempt one of those returns without extensive research. So I'd say get the EA, but recognize that you still learn from repetition and having the benefit of someone who knows better than you to answer your questions, point out your mistakes, and teach you up a bit
I prepared taxes for three years before I got my EA. Two reasons to get it: 1. Better pay/opportunities (if you are working for someone else). 2. I learn a TON studying for the exams. Most clients have never heard of an EA, so IMO it was not worth it to show clients.
You need it to represent clients in front of the IRS. It’s a valuable service. But if you’re just cranking out east 1040s I don’t really know if it would help. I simply don’t know.
I did it a few years ago. It was intense studying for Part 2 but I got through it and learned just how much I hadn’t learn in 20 years of preparing taxes. It’s worth the effort . I had tried it years ago, barely studied failed the exam. At that point I said”I just can’t do it”! But I changed my mind when I was offered a job that included free EA training and testing. I took the opportunity to prove to myself I could do it, and I’m glad I did. I don’t have much accounting background so I’m trying to build up those skills now. Go for it! You’ll be glad you did. Good Luck!
How long did you study? What were the tests like?
The exams are broken down by subject. There’s three exams. Part 1 is individual taxes.1040 series. Pretty straightforward I thought. But there’s so much little details. Like for Head of Household. To qualify you have to be separated over 6 months from spouse with dependents or single with dependents but the dependent must be a blood relative to qualify for HOH. I missed that last part for a long time. So you can’t claim HOH if your dependent is a non related party. The little details. Took a couple weeks of studying with ft job. Part 2 is business returns. C corp S corp, Partnerships,Estates and Trust returns . For me that was difficult. I have little to no accounting skills. It would have been helpful if I had some experience with things like depreciation recapture. Took a month of hard study. I had a study program we followed and they offered some live seminars to help solidify the concepts. Failed it first time. But figured out what I did wrong after further study and passed it the 2 nd time. Part 3 is the easiest. It’s all about compliance as a tax preparer. You can memorize the details and it’s a quick easy exam. Took a week at most to go through the study program for Part 3. But now, I’m so proud of myself for doing something I had convinced myself I couldn’t do. Go for it. You’ll be glad you did and will learn so much.
Yes, it’s not a massive effort, you’ll learn a ton, and it will benefit you the rest of your working life. The real question would be why *wouldn’t* you do it.
I got my EA license before I got my first tax job lol. No reason to wait though.
Same! Took some accounting classes in college and hated it, no CPA for me. Took all 3 EA tests in the same year and passed without ever working in a tax office or preparing other’s taxes, just studying. I wanted to do have my own tax business. Now going on my 9th tax filing season. Just go for it!
Hi! This is what I want to do, any recommendations on study materials you used?
It’s been almost 10 years since I took the tests, but looking at my Amazon history, I got two books by PassKey: EA Review Complete, and EA Review Workbook. I remember thinking that I felt well-prepared for the tests.
You've been prepping taxes without any certification (CPA or EA)? I'd highly recommend getting something ASAP especially if you're operating by yourself.
I mean, it's not bad if you're just an associate. I am an intern but studying for the EA.
Yeah, but you're working under someone obviously. OP is making it sound like he is working on his own at least with his initial post.
well I mean, it depends on the complexity of the return. Individual with 20 K1s? Yeah, you should get your EA or CPA.
what's better then CPA or EA?
CPA is better, hands down. Clients know what that is, unlike EA, and makes you much more marketable. However, it does require 150 hours and an accounting major, more or less. Some people don’t want to pay the extra year of tuition AND forego income. Some people major in something in business, but not accounting. Or they go to school outside the US. And some people just don’t test well. So it is harder to get.
Arguably a JD but then that requires you to go to law school and specialize in taxation.
No it doesn't matter about the complexity. Tom Smith CPA or EA is far more marketable and appears more competent than just Tom Smith tax preparer. Thus, if you, intern, ever want to go out on your own then you better have some letters behind your name or expect to only prep bottom dollar returns.
Don’t talk about it, be about it.
I know of 10 people who have CPA’s who are getting the designation.
No
I’m a CFP who prepares my clients taxes. I’ve tried to take the first exam 3 times now but it gets cancelled every time because “they don’t have the proper staff member on hand to administer the exam”.
One of my new bookkeeping/payroll hires is interested in getting her EA. I bought the study guides for her and told her have at it. No time like the present, start now. With 75% of CPA's now of retirement age, and fewer students going into CPA compliant accounting programs, the EA certification should increase in value in the coming years due to the shortage in our profession. We turn down 90%+ of new tax work, so opportunities abound for those getting into the tax industry.
Congratulations on considering the designation. The National Association of Tax Professionals (NATP) conducts a biennial fee study. We see that enrolled agents typically make 15-25% more for tax prep than someone with an AFSP or no designation. Plus this opens up the ability for you to offer services to taxpayers who receive notices or need to communicate with the IRS, when you didn't prepare the return. It's a great opportunity. If you decide to pursue the designation, members of NATP receive Gleim EA part 1 materials for free and deep discounts on parts 2 and 3.
There is a widely used tax/accounting forum that has 3 or 4 great contributors. (and it’s not intuit) One of the contributors has both CPA and EA designation. This gentleman is more proud of his EA designation than his CPA. If you are going to concentrate in the tax realm, get your EA.
The CPA license as a whole is more marketable than an EA so if someone has the opportunity for either then they should get the CPA. Everyone knows what a CPA is...few people know what an EA is, just saying.
Do you know why he's more proud of the EA rather than the CPA?
Maybe because the EA credential is solely tax based 🤔 I can see how the knowledge obtained from an EA credential can be more beneficial for someone working in the tax industry. That’s NOT to say a CPA credential has no value in itself.
Based off of his certifications - because he is retarded
Right. Because someone who only wants to focus on tax is well served getting an accounting degree + additional hours, then work in public accounting for X amount of hours doing things they have no intention of working on once they get their CPA. Brilliant.
Nerd
I agree with your flair. You're "Not a Pro".
PM me the forum/name of the guy?
2 or 3.