What Does an Enrolled Agent Do? A Day in the Life

If you’re an aspiring tax professional, you’ve probably heard of the enrolled agent profession. But what does an enrolled agent’s day look like? Who do they work with? Where do they work?

And most importantly: what do enrolled agents actually do?

Here’s a quick summary: EAs are tax experts licensed by the IRS to represent individuals, businesses, and organizations in a number of tax matters. With deep knowledge of tax law and the ability to represent clients in front of the IRS, EAs are a valuable resource for anyone who needs guidance or support with taxes.

If that sounds interesting to you, keep reading! I’ll teach you what an EA does, who they work with, and what their work environment looks like so you can decide if a career as an enrolled agent is right for you.

Key Takeaways

• Enrolled Agents Are Tax Experts: EAs are licensed tax professionals recognized by the IRS, with the ability to represent clients on all tax-related matters.
• Unlimited Representation Rights: Unlike most tax preparers, EAs have unlimited practice rights and can represent clients in audits, appeals, collections, and other IRS dealings.
• Two Paths to Becoming an EA: You can become an EA by passing the Special Enrollment Examination (SEE) or, if you’re a former IRS employee, by meeting experience requirements.
• Diverse Work Environment Options: EAs can work independently, join tax firms, work in corporations, or even work remotely, offering great flexibility.
• Continuing Education Is Required: To maintain their license, EAs need to complete ongoing education, keeping them up-to-date with tax laws and IRS policies.

What Do Enrolled Agents Do, and Who Do They Work With?

An enrolled agent is more than just a tax preparer—they’re a tax problem-solver. EAs work with a diverse set of clients who may need help with anything from tax returns to IRS audits. Here are some of the main tasks EAs handle and the kinds of clients they work with:

• Tax Preparation: Like other tax professionals, EAs help individuals and businesses prepare and file tax returns. They work with a wide range of clients, from individuals who need help with basic tax forms to small businesses and even larger corporations with more complex tax obligations.
• IRS Representation: When clients face issues with the IRS—like audits, back taxes, or other disputes—EAs can step in to represent them. This includes negotiating payment plans, reducing penalties, and guiding clients through IRS hearings. Some EAs work almost exclusively in tax representation, often dealing with high-stakes cases for clients who owe significant amounts or are facing compliance issues.
• Tax Planning and Consulting: EAs also provide tax planning services, helping clients make financial decisions that minimize their future tax liability. This can include advice on retirement accounts, investment strategies, or business expenses. For business clients, EAs might suggest specific tax strategies, like structuring expenses or timing asset purchases, to take advantage of tax breaks.

What Does an Average Day Look Like for an Enrolled Agent?

The daily work of an EA can vary significantly depending on the time of year, their specialty, and the type of clients they serve. Here’s a look at what an average day might involve during and outside of tax season.

During Tax Season

Tax season—typically January through April—is the busiest time of year for EAs. Here’s what an EA’s typical day might look like during this time:

• Morning: An EA might start their day by reviewing clients’ documents and preparing or finalizing tax returns. This could involve collecting income statements, investment records, and expense receipts to ensure everything is accurately reported. They may also answer clients’ questions about deductions, credits, and other tax-saving opportunities.
• Afternoon: After a morning of tax prep, they might meet with clients to review completed returns, explaining the details and answering any final questions before filing. EAs often use this time to discuss any red flags that could trigger an audit and advise clients on steps to prevent future issues.
• Evening: Tax season often means long hours, so EAs may spend evenings catching up on complex returns, preparing additional documents for clients, or even handling last-minute requests from clients needing to file extensions. It’s a busy, high-stress time, but it’s also when EAs bring the most value to clients.

Outside of Tax Season

After tax season, the daily routine of an EA can look quite different and may be less hectic. Here’s what an EA might focus on during the “off-season”:

• IRS Representation and Audit Assistance: For some EAs, especially those who specialize in tax disputes, the rest of the year may focus on representing clients in front of the IRS. This involves gathering evidence, preparing case files, and meeting with IRS agents to resolve issues for clients who have been audited or have other tax-related disputes.
• Tax Planning and Strategy Meetings: Off-season is an ideal time for tax planning. EAs meet with clients to review their financial situations and suggest strategies for minimizing tax liabilities in the coming year. For instance, they may help business clients plan large purchases or investments to maximize deductions.
• Continuing Education and Professional Development: EAs must complete a minimum of 72 hours of continuing education every three years to maintain their license, with 16 of those required per year, and 2 of those 16 must be in ethics. So, outside of tax season, EAs might take professional courses or attend seminars to stay up-to-date with the latest tax laws and IRS policies.

Work Environment: Where Do Enrolled Agents Work?

Enrolled agents can work in a variety of environments, each with its own advantages. Here’s an overview of the common settings where EAs practice:

• Accounting and Tax Firms: Many EAs work in public accounting or tax firms alongside CPAs, tax preparers, and sometimes attorneys. In these firms, EAs may work on teams that handle clients’ accounting and tax needs year-round.
• Solo Practice: Some EAs work independently and run their own tax preparation or consulting businesses. This allows them to set their own schedules and choose their clients. Working solo can be rewarding, but it requires strong self-motivation and good business skills.
• Corporate or In-House Roles: Some corporations employ EAs to handle tax planning, compliance, and internal audits. This environment is often more predictable and structured than public practice, which appeals to those who prefer consistent hours and a regular workplace.
• Remote Work and Seasonal Contracts: With technology making remote work easier, many EAs work from home or take on seasonal roles during tax season. Remote work is ideal for those who enjoy flexibility or want to balance their EA career with other commitments.

What Skills and Traits Make a Good Enrolled Agent?

To be a successful EA, certain skills and qualities are especially valuable:

• Attention to Detail: EAs deal with complex tax codes and regulations, and accuracy is essential. Even a small mistake could lead to an IRS notice or missed tax savings for a client.
• Problem-Solving Skills: Tax issues are often complex and require creative solutions, especially when representing clients in disputes.
• Client Communication Skills: EAs work closely with clients, often explaining complicated tax laws in simple terms. The ability to break down complex ideas and build trust is crucial.
• Self-Discipline and Flexibility: Whether they work independently or in a firm, EAs need strong time management skills, especially during tax season.

Why Consider a Career as an Enrolled Agent?

Becoming an EA can be a rewarding and flexible career choice for those interested in taxes, financial planning, or IRS representation. Here are a few benefits:

• High Demand and Job Security: Tax expertise is always needed, and demand for qualified EAs is steady year-round, particularly for those who can handle complex tax issues.
• Flexibility in Work Arrangements: Many EAs enjoy the flexibility of independent work or remote work, giving them control over their schedules and workload.
• Opportunity to Help People: EAs often assist clients who feel overwhelmed by taxes, providing them with peace of mind and clarity on tax issues.

Conclusion

Becoming an enrolled agent offers a unique blend of independence, challenge, and opportunity to help others. With specialized knowledge in tax law, EAs assist a wide range of clients, from individuals to businesses, offering valuable advice, filing taxes, and even standing up to the IRS on clients’ behalf. If you’re considering a career in tax and enjoy problem-solving, working with clients, and staying up-to-date on tax regulations, a career as an EA might be the perfect fit.

Whether it’s the busy tax season or the off-season focus on planning and IRS representation, enrolled agents are essential guides in the ever-changing landscape of taxes. So, if you’re ready to take the next step toward this rewarding career, becoming an EA might just be the best decision for you.

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