The “EA” as an International Credential?

The number of enrolled agents (EAs) in India has grown from 673 in 2017 to 2,262 in 2023. Enrolled agents in India now make up 3.1 percent of all enrolled agents. What’s driving this growth and how does it impact the EA profession, EA firms and employers, and the professional organizations that support them?

Outsourcing overseas is not a new concept. The biggest difference now is the demand for higher-level trained labor and credential holders in more professions. Plus, the unfilled tax and accounting talent gap has created a huge opportunity for the foreign market to fill these roles.

These aren’t just market forces at work. The Indian government has created job training programs to develop workers in tax preparation and they include preparation for and taking the special enrollment exam (SEE). The Additional Skills Acquisition Programme (ASAP) in Kerala has been partnering with H&R Block for some time. It’s now attracting some of the large accounting firms as well. These firms want to hire individuals with not just training, but also a credential that signals expertise, ongoing education, and credibility. The fact that they are showing that they value and support the acquisition of enrolled agents demonstrates a major shift in awareness and appreciation for the credential.

The ASAP alone is expected to produce more than 3,000 tax professionals over the next three to four years.

So, what opportunities does this open for the National Association of Enrolled Agents (NAEA) and its members?

Large firms may find this market to help fill both seasonal and year-round positions. As large tax preparation companies and big firms continue to grow their overseas workforce to replace the dearth of domestic candidates, small firms may benefit from attracting clients who prefer the personalized, relationship-based, and year-round services that many enrolled agents can provide.

The demand for trained tax professionals at all levels remains constant. This isn’t likely to slow down as tax preparation becomes more complex, the Internal Revenue Service (IRS) catches up on the pandemic years of backlogged examination and collections, and there continues to be shifting consumer interest in do-it-yourself (DIY) tax filing options. The launch of the IRS’s free file in 2024 will be the latest program to test that interest.

For the NAEA, this is a new and expanding potential membership base that will need technical support, advocacy, education, and training. This developing community of enrolled agents in certain areas may look for ways to connect and join for peer support and camaraderie. As we continue to evolve and adapt to a changing membership with diverse needs and interests, we also need to keep a focus on these growing communities.