Working in taxation offers a world of career possibilities, from tax preparation to adding tax planning within wealth management. If you’re a professional in this area (or plan to be), learn how tax certifications will help you advance your career and expand your client base, and which ones are the best options, depending on your career.
Why are tax certifications valuable?
All you need to prepare taxes is a PTIN, so you can work as a tax professional without certifications, but your career growth will be stunted. Tax certifications bring you:
- Knowledge and skills to offer additional services, like understanding tax planning or how to resolve problems with the IRS
- Professional recognition and added credibility by demonstrating your commitment to the profession and your proficiency in tax laws and regulations
- A more competitive resume to show employers you've gone above and beyond the basic requirements to gain specialized knowledge and skills
- More job opportunities, especially for jobs involving complex tax issues or higher levels of responsibilities
- Higher paying positions from more specialized jobs
- Entrepreneurship capability opens up when you have the confidence and skills to attract clients and build a successful business
- Authority to represent clients before the IRS (depending on the designation)
Without tax certifications, you not only will find it more difficult to advance within the profession, but you’ll also lack the legal rights to perform many important tax services like representing clients in audit processes and appeals. Earning tax certifications are key to offering more services, unlocking job opportunities, and ultimately taking your tax career to a higher level.
Top 8 tax preparer certifications
- Enrolled Agent (EA)
- Certified Public Accountant (CPA)
- Attorney at Law
- IRS Annual Filing Season Program – Record of Completion Holders
- Chartered Tax Professional (CTP®)
- Certified Tax Representation Consultant (CTRC)
- Accredited Tax Preparer (ATP)
- Accredited Tax Advisor (ATA®)
#1 Enrolled Agent
An Enrolled Agent (EA) is one of the only three tax certifications that grant you unrestricted authority to represent clients before the IRS. Awarded by the IRS, Enrolled Agents have national jurisdiction and can work anywhere in the US, providing:
- Providing expert tax advice
- Preparing tax returns
- Representing clients during audits
- Representing clients in appeals and collections
With total authorization to perform any tax-related function, but no additional areas of content focus outside tax services, being an Enrolled Agent will likely mean that you will work exclusively in tax and grow your career focused only in this area of specialization.
Becoming an EA requires that you get a Preparer Tax Identification Number (PTIN) and pass the IRS’s Enrolled Agent Exam, but that's it. There are no education or experience requirements to meet. This accessibility, combined with the complete IRS authority to perform any tax-related service, makes being an EA the most ideal tax certification for professionals who want to build a career that specializes entirely in this area.
#2 Certified Public Accountant
A Certified Public Accountant (CPA) license is the second of the three credentials with unrestricted representation authority. Like Enrolled Agents, CPAs can prepare taxes, represent clients before the IRS during audits and appeals, and provide any other tax services that clients require.
CPAs, however, differ from EAs in that their license covers a broader scope of services than just tax-related work. To earn licensure, candidates must pass the CPA Exam that covers tax, audit and attestation, and financial accounting and reporting concepts. Also, you need to complete comprehensive education and experience requirements to become a CPA. Once you have your CPA license, however, you could work in any area of accounting; you could grow your career in tax or pivot into a different specialization.
#3 Attorney at law
Again, this isn't a certification, but a tax attorney is authorized to represent clients before the IRS. To be an attorney, you must have a Juris Doctor degree from a law school and pass the Bar Exam.
Becoming a tax attorney likely means that you’ll specialize in tax services but focus more on the legal aspect of this work, providing legal advice on tax compliance and strategies to avoid legal issues, as well as provide counsel in tax litigation, estate planning, and corporate tax issues.
#4 IRS Annual Filing Season Program – Record of Completion Holders
The IRS offers a voluntary education program each year prior to filing season for individual tax preparers who don’t hold the EA, CPA, or attorney at law tax certifications. Anyone with a PTIN can legally prepare taxes on behalf of a client, however, those who earn a Record of Completion for this IRS Annual Filing Season Program earn added benefits.
Record of Completion Holders are included in the IRS’s public directory of tax return preparers, giving them added visibility and credibility with potential clients. While they do not have unlimited representation rights, they are allowed to represent clients whose returns they prepared and signed, before revenue agents, customer service representatives, and similar IRS employees. PTIN holders without this tax certification are permitted only to prepare tax returns.1
#5 Chartered Tax Professional (CTP®)
Chartered Tax Professionals® specialize in tax services for individuals and small businesses. This tax certification doesn’t give the tax preparer additional authority with the IRS, but it does require completion of online tax coursework and equips you with the skills to provide specialized tax consulting and return preparation services. Plus, it can give you more visibility and credibility with clients.
You don’t have to meet education, experience, or exam requirements to become a CTP, but you must complete an 18-month, five-course program.2
#6 Certified Tax Representation Consultant (CTRC)
Becoming a Certified Tax Representation Consultant (CTRC) equips you with advanced skills in tax resolution services. CTRCs are Enrolled Agent, CPAs, or attorneys who have the authority to represent clients before the IRS, and then earn their CTRC tax certification to become better equipped in the practice of tax resolution.
The Tax Rep Network (TRN) and Becker partner to offer the CTRC certification, with an online curriculum that covers:
- IRS Audits: From contract letter to closing agreement
- IRS Collections: Learn how to resolve your client’s tax nightmare - Innocent Spouse: How to win an innocent spouse case
- Payroll Tax: Resolving payroll tax debys
- Offers-in-Compromise: From billing notice to acceptance letter
Becoming a CTRC will enhance your tax representation expertise, allowing you to expand your service offering (and revenue opportunities!) and grow your client base.
#7 Accredited Tax Preparer (ATP)
The Accredited Tax Preparer (ATP) certification focuses on equipping tax professionals with expertise in Personal Income Tax and Ethics and Procedures areas. ATPs qualify for the IRS’s Annual Filing Season Program Record of Completion without having to complete the coursework—gaining all the advantages that come with this tax certification.
Becoming an Accredited Tax Preparer requires that you pass the 100 multiple choice question ATP Exam that covers individual tax returns, comprehensive 1040 issues, and ethics.3
#8 Accredited Tax Advisor (ATA®)
Accredited Tax Advisors demonstrate specialized knowledge in tax consulting for businesses, planning for highly compensated individuals, advising on retirement plans, and performing real estate planning.
Becoming an ATA backs your expertise and helps you gain confidence with clients when offering tax return preparation and consulting services for:
- Individuals
- Business entities
- Fiduciaries
- Trusts and estates
To earn your ATA tax certification, you must show three years of tax services experience and pass a 100 multiple choice question exam that covers comprehensive tax regulation related to business entities, fiduciaries, trusts and estates, tax planning, and consulting, as well as ethics.4
Growing your career with tax certifications
While all these top tax certifications help you advance your career into different areas of tax specialization, your best first step in tax services is to earn your Enrolled Agent credential. Being an EA will grant you comprehensive knowledge, unrestricted representation authority, higher paying job positions, entrepreneurship potential, and limitless opportunities for further specialization in your tax career.
Learn more about becoming an EA by downloading our EA Exam Guide. This FREE eBook is a great introduction to the credential, how to pass the EA Exam, and if this tax certification is right for you.
Start your EA Exam prep with the information to succeed.
Download our FREE EA Exam Guide ebook.
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