EA vs CPA: Exam, Credential, Salary & Career Differences

EAs have various responsibilities like representing clients in tax audits, tax collection, and providing tax guidelines. EAs are uncontested regarding tax issues and can give clients extraordinary ideas. Enrolled Agents advise, represent and prepare tax returns for individuals, partnerships, corporations, estates, trusts and any entities with tax-reporting requirements. They are the only federally licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. Enrolled agents’ knowledge in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS. The decision to choose between an EA and a CPA for tax representation and problem resolution depends on the nature and complexity of the tax issues at hand.

CPA vs EA FAQ

Instead, they are licensed by the IRS, and they play an important role in representing taxpayers before the IRS. The CPAs are regulated at the state level, and the EAs are regulated at the federal level. To become a CPA, you must pass a four parts exam provided by AICPA.

• However, if you need an independent audit of your business’s accounting records, then you will need to hire a CPA.
• Their ability to handle diverse financial tasks makes them indispensable in various professional settings.
• Accordingly, you must then pass that section and any other unpassed sections within 30 months of the time you passed your second section.
• Additionally, you must work in an accounting position for 1 to 2 years to meet the CPA work experience requirement.
• They specialize in tax matters and represent taxpayers before the Internal Revenue Service (IRS) in all states.
• As you may recall, the EA exam has one fewer part (three total) than the CPA Exam (four).

Specialization and Expertise

Guides, templates, Partnership Accounting and checklists to make finances a little easier. Get unlimited advice, an expert final review, and your maximum refund, guaranteed with TurboTax Live Assisted Basic. Other factors, such as the EA or CPA’s level of experience, will also impact the amount you pay.

• States usually confirm CPAs, while the federal government is more into EAs.
• I am the author of How to Pass The CPA Exam (published by Wiley) and the publisher of this and several accounting professional exam prep sites.
• For general questions on expat taxes or working with Greenback, contact our Customer Champions.
• While both can provide high-quality services, there are key differences to be aware of.
• When you’re a Pro, you’re able to pick up tax filing, consultation, and bookkeeping jobs on our platform while maintaining your flexibility.

How can Taxfyle help?

This time period begins as soon as you pass your first exam section. At that point, you have 18 months to pass the remaining three sections. If you don’t pass the remaining sections within this time, you will lose credit for the first section you passed. Accordingly, you must then pass that section and any other unpassed tax preparer vs cpa sections within 30 months of the time you passed your second section.

CPAs specialize in general accounting and sometimes tax as well.

If budgetary concerns are a factor, an EA is likely the best decision. CPAs engage in a multitude of roles that cater to diverse financial needs. They serve what are retained earnings as auditors, ensuring that audited financial statements are accurate and comply with regulations.

Do you need financial help that has nothing to do with taxes?

CPAs are known for their advanced practice standards and comprehensive skill sets, which encompass technical accounting abilities and advisory services. In contrast, EAs are specialized tax practitioners licensed federally by the IRS, focusing exclusively on tax-related issues. An EA is the highest credential the IRS awards, specifically licensed to handle tax-related issues. They prepare tax returns, represent taxpayers before the IRS in audits, collections, and tax appeals, and help clients navigate complex federal and state tax laws. Our enrolled agents are tax professionals who have demonstrated technical competence in the field of taxation.They are authorized by the U.S.