The complexity of your tax needs can greatly influence your choice between an EA and a CPA. While EAs are perfect for handling specific tax matters, CPAs bring a broader range of skills that can be beneficial for more complex financial situations. Understanding these differences helps in making an informed decision about which professional to hire. CPAs are not just tax experts but also serve as trusted advisors in various financial matters. CPAs often act as tax consultants, assisting clients with a wide range of financial duties and goals. Whether it’s financial reporting, business valuation, or auditing, CPAs bring a wealth of knowledge to the table, making them versatile and highly sought-after professionals.

Enrolled Agent (EA) vs. Certified Public Accountant (CPA): What’s the Difference? Frequently Asked Questions

• Most states require at least a bachelor’s degree and some previous public accounting experience under the supervision of a licensed CPA.
• Understanding these differences helps in making an informed decision about which professional to hire.
• EAs and CPAs can both be tax experts, and the work they do is often similar, but there are some clear differences when you do an EA vs. CPA comparison.
• Their diverse skill set positions them as versatile financial advisors capable of addressing multifaceted financial concerns.
• EAs are tax specialists who can represent taxpayers before the IRS on any tax matter, such as audits, collections, appeals, and more.
• This commitment ensures that the firm delivers up-to-date and relevant advice to its clients, maintaining high standards of service and expertise.

EAs must maintain their expertise by fulfilling continuing education requirements and staying updated with evolving tax laws and regulations. EAs must also undergo a background check and adhere to ethical standards set by the IRS. EAs have unlimited practice rights, meaning they can represent any taxpayer, regardless of the type or complexity of the tax issue, and deal with any IRS office or employee. Their sole focus is being the go-to expert on tax laws to help clients navigate their cases with the IRS, like, for example, settling tax debt. The primary difference between an EA and CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and typically have a broader knowledge of accounting and taxation. So, if you’re thinking of hiring an EA or CPA, which one will fit your needs the best?

What is a Certified Public Accountant (CPA)?

For example, there might be separate charges for Form 1040, Schedule C (for business income), Schedule E (for rental income), and other forms included in your return. Each state’s board of accountancy also has ethical rules and regulations that CPAs must follow. In addition, a certain number of the required continuing education hours typically must cover ethics. When you’re looking to hire a tax professional, you want someone knowledgeable — someone you can trust to get the job done and keep your personal information secure. Although no formal credentials are required to work as a tax preparer in the U.S., hiring one with a professional license protects your interests.

Ethical Standards and Professional Conduct

Above all, it’s important to remember enrolled agent vs cpa that while both professionals can provide a host of taxation services, CPAs generally offer a much wider scope of financial services. CPAs also tend to be in higher demand than EAs, but that’s probably only because CPA is a better-known license than EA. For more information about the tax and accounting services we provide, visit our Home Page! The friendly CPAs, Enrolled Agents, tax professionals, and bookkeepers and accountants at Massey and Company CPA are here to assist you. Massey and Company CPA offers a wide array of services that leverage the distinct expertise of both CPAs and EAs. The CPAs at the firm bring their extensive knowledge in financial accounting, corporate finance, and business consulting to help clients navigate complex financial landscapes.

Top Startup CPAs: Essential Accounting Services for New Ventures

Their commitment to professional ethics includes integrity, objectivity, confidentiality, and competency in their financial and accounting services, fostering high client trust. EAs prepare various tax returns proficiently, ensuring accuracy and compliance with current tax laws. Since the enrolled agent credential comes from the IRS and includes the unlimited right to practice on a federal level, EAs can work with clients who have filings all across the United States. Both enrolled agents and CPAs can supply their clients with superior service.

• Set your business up for success with our free small business tax calculator.
• As mentioned above, because of the flexibility of the CPA designation, these professionals can be involved in many different types of financial work.
• Enrolled Agents are tax specialists authorized to practice nationwide.
• Both Enrolled Agents and Certified Public Accountants enjoy diverse career opportunities across various sectors.
• Enrolled agents also have the opportunity to earn extra money during tax season.

Responsibilities of a Certified Public Accountant

Thus, while an EA’s expertise only includes tax preparation, their representation rights are unlimited. If you’re not sure where to start, TaxCure can help you find the perfect tax professional to fit your needs, based on the specific problem you’re having. We can also help you narrow down your search to filter for EAs, CPAs, or even tax attorneys if desired. The key to finding the best professional for your needs is to find a professional that is local and has experience with your unique tax problem. TaxCure helps you do just that, so start a search today to find the best professional to help you.

The IRS explains that processing your application may take as long as 60 days ( days if you’re a former IRS employee). Also, as part of their evaluation of your enrollment application, the IRS will conduct a suitability test that includes a review of your personal tax compliance. Enrolled agents, or EAs, are tax preparers the IRS has authorized to represent taxpayers.