Are Enrolled Agents Finally Having a Moment?

I am going off this issue’s EA Journal topic because I can’t wait to tell you what I am seeing and hearing. The secret is out about enrolled agents (EAs). The decades-long struggle to get some respect and awareness in the marketplace is making some headway.

Enrolled agents get frustrated when they are mistaken as a certified public accountant (CPA) or when someone doesn’t know what an enrolled agent is, and rightfully so. However, there are more than 660,000 CPAs in the marketplace, compared to 65,000 EAs. Enrolled agents are not as well-known because there simply aren’t as many.

The EA designation has also not historically been promoted at the college and university level. The lack of a degree requirement makes it not in their best interest to do so. We are working on changing that and making some progress. We are aware of at least 77 community colleges that have incorporated enrolled agent preparation into their programs and that number is growing.

Enrolled agents can also help develop and deliver these programs, which also helps raise the profile of EAs with community college students. Nauri Ahmed, Executive Secretary of the Accounting Curriculum Advisory Board at the Northern Virginia Community College, reached out to the National Association of Enrolled Agents (NAEA) to find an enrolled agent to do just that. According to Ahmed, “Having an enrolled agent on our advisory board and assisting with the development of tax curriculum, can ensure that we have real-world tax experience and expertise incorporated into these programs.” We are working with other tax professionals to develop a tax certificate which will incorporate the EA Exam preparation.

Firms are also taking notice. There are many reasons why interest in the CPA designation is declining, all contributing to talent gaps and lots of open positions in tax departments. Promotion and partnership rules are starting to shift. We learned recently that the national accounting firm Crowe is hiring EAs, encouraging their non-credentialed staff to pursue the EA credential and making them eligible for promotions that used to require the CPA.

Earlier this year NAEA member, Brian Prucey, posted in the NAEA Facebook group:

As of January 1st, I have become a partner in the CPA firm where I have worked for the past 3 years. I’m the first non-CPA to become a partner. The firm had to change the name to remove “CPA” from the firm name. However, the other partners were willing to make the change to bring me on as a partner. I was the first EA they ever hired, and I believe I quickly showed my value to the firm.

A colleague that I know well from my past job in a CPA association recently reached out to me and asked if we could meet to talk about enrolled agents. She said, “Our members keep talking about EAs in our meetings and I want to learn more.” I, of course, jumped on the opportunity to talk about enrolled agents.

This is a great opportunity for the EA profession and here’s why:

• Tax talent is in high demand.
• Firms are starting to hire more EAs.
• Fewer barriers to entry to the credential.
• Tax planning and preparation is complicated.
• Audits will be increasing as the IRS catches up from Covid-related compliance delays.

We also see the regulation of tax preparers as an opportunity to position the enrolled agent credential as the credential of choice for those already in the tax preparation business or considering doing so in the future.

This is an exciting time for enrolled agents! The need for tax expertise continues to grow and the awareness of EAs as tax experts will continue to grow as well.