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CPA vs EA Enrolled Agent Top 7 Differences, Infographics

enrolled agent vs cpa

So, as with an hourly rate, you’ll probably pay more if your tax return is more involved. And with TurboTax Live Full enrolled agent vs cpa Service, you can enjoy tailored assistance from a tax expert near you who’s well suited to handle your specific needs. If you need help with an IRS issue, such as a collection problem or a tax audit, an EA can often meet your needs.

  • While offering a broader range of financial services, CPAs can still provide cost-effective solutions.
  • They can assist with business valuation, risk assessment, and financial reporting, providing a comprehensive approach to resolving tax-related issues.
  • While EAs primarily focus on tax-related issues, CPAs can deal with a host of financial subjects including taxation.
  • Depending on years of experience, rank within their firm, etc., a CPA may charge between $30 and $500/hour.
  • If you’re primarily looking for someone to prepare your income tax return, either an EA or CPA will likely be able to meet your needs.

Self-Employed Tax Deductions Calculator

Implement our API within your platform to provide your clients with accounting services. CPAs are also subject to oversight and discipline by their respective state boards of accountancy and CPA societies. EAs represent clients during IRS audits, investigations, or disputes, ensuring their rights are protected and advocating. The CPA Exam has testing all year long, but it has a shorter period to pass all four exams. You must pass all four parts of the CPA Exam within a rolling 18-month period that begins as soon as you pass your first exam section.

What is an EA vs CPA?

  • While there could be exceptions to the rule, CPA licensure generally has a much higher barrier of entry than the enrolled agent credential.
  • This combination is attractive to small businesses that need both audit and tax services, preferably from the same team.
  • CPAs are also subject to oversight and discipline by their respective state boards of accountancy and CPA societies.
  • However, if you need an independent audit of your business’s accounting records, then you will need to hire a CPA.
  • CPAs have a broader knowledge base in all facets of accounting while EAs only focus on tax.
  • EAs can also prepare and file tax returns for individuals, businesses, and entities with tax-reporting requirements.
  • Generally, applicants have to have completed at least 150 credit hours of coursework as part of their education.

Certified Public Accountants also have stringent continuing education requirements to uphold their licenses. This ongoing education covers a broad range of accounting and financial topics, ensuring that CPAs continue to provide high-quality services across various financial disciplines. Tax season is here, and you’re probably wondering whether you should hire an Enrolled Agent (EA) or a Certified Public Accountant (CPA).

Further Reading: Maintain a strict privacy policy for any tax preparer

However, if you currently meet the EA requirements, it may benefit you to continue on this path before working on your CPA license. You can also search the IRS’s online directory of tax return preparers to find both EAs and CPAs who hold professional credentials recognized by the tax agency. You might also run across an EA or CPA using a per-form pricing model, which is a type of flat-fee approach. With this method, there’s a set fee for each tax form or schedule required for your return.

What Is a Certified Public Accountant (CPA)?

This federal licensing process guarantees that EAs maintain high ethical standards and are well-equipped to handle sensitive tax matters. EAs and CPAs engage in continuous professional education to stay updated. They attend seminars, workshops, and online courses on tax laws, accounting standards, and industry trends to maintain their expertise. EAs tend to specialize in taxation, and the IRS recognizes them as tax experts.

enrolled agent vs cpa

Enrolled Agent vs CPA: How Do You Choose the Right Tax Professional for You?

Both CPAs and EAs have comprehensive knowledge of the United States tax codes and can use their knowledge to represent their clients in audits, appeals and other matters with the IRS. Enrolled Agents must pass a three-part, 10.5-hour exam that covers individual and business taxes and tax representation issues. Massey and Company CPA emphasizes the importance of continuing education for its professionals. Both CPAs and EAs engage in ongoing professional development to stay abreast of the latest changes in tax laws and accounting practices. This commitment ensures that the firm delivers up-to-date and relevant advice to its clients, maintaining high standards of service and expertise. The scope of a CPA’s work extends beyond taxation to include financial consulting, business valuation, and more.

Tax Laws and Financial Planning

EAs ensure clients’ tax compliance by meticulously preparing accurate tax returns and adhering to current tax laws and regulations. Their focus on tax-related matters ensures thorough compliance, reducing the risk of errors and potential penalties. The IRS authorizes EAs to represent taxpayers during audits, examinations, appeals, and collections. Their specialized training and expertise in tax law allow them to effectively advocate for clients before the IRS, ensuring fair treatment and protecting taxpayers’ rights. They can only practice in the states where they are licensed or have reciprocity agreements. The EA exam has three parts, and most people find the first and third parts to be the easiest because some experienced tax professionals can pass these parts with minimal studying.