Let’s dig into the differences between EAs and CPAs, from education to the scope of services. CPAs are also state-licensed, while an EA is a federal designation licensed directly by the IRS. Like EAs, CPAs are also subject to ongoing educational requirements, as well as a code of ethics to ensure professional standards. 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. As you’ll see, the basic steps are the same, but the manner in which you fulfill the requirements differs.

Fulfill the experience requirement.

• Moreover, their services include resolving tax-related issues, representing clients before the IRS, and working toward a favorable tax resolution.
• This versatility allows CPAs to work in various industries and positions, offering greater career flexibility.
• Although they can provide financial advice, CPAs can’t offer legal services or represent you in court.
• EAs do not need a college degree, but many come from an accounting or finance background.
• The profession is long established, having first been created in 1884 following fraudulent Civil War-era tax claims.
• CPAs look deeply into the financial equation, evaluate numbers, create projections and try to provide an overall picture, forecast, and recommendations based on internal and historical data.

Overall, you must pass each exam part within a rolling two-year window. In case you fail an EA exam part, you can take each section a total of four times during a single testing window (May 1 of one year to February 28 of the next). You can pass the EA exam in a timely manner by studying with an EA review course and sticking to a study schedule. You can’t take the exam in March or April every year because the makers of the test are updating it.

TurboTax Tip:

• A certified public accountant (CPA) is a state-licensed professional capable of providing a range of taxation and financial management services.
• Keep in mind these are minimum costs – they don’t take retakes or more expensive prep materials into account.
• In general, CPAs earn more than EAs, and CPAs also benefit from increased earning potential as time goes on.
• This is primarily because of the extent of studies required for each exam and the topics covered.
• When deciding between EAs and CPAs, it’s important to consider the primary differences in their services to clients.

Both can provide individuals or businesses with the guidance needed to solve most tax issues. Beyond that, however, knowing which one to choose depends primarily on your unique circumstances. Enrolled agent status is the highest certification given out by the IRS. They are authorized to represent taxpayers in audits, appeals, and collections. Our local tax experts in Carlsbad will provide personalized advice and guidance, ensuring you get the most out of your business tax return. Don’t leave your money on the table – trust USiBTS to help you get your taxes done right.

What are the Key Differences

There is also a continuing education component that entails taking 72 credits every three years. Both CPAs and EAs are highly qualified professionals who can help you manage your financial and tax needs. Understanding their differences will enable you to choose the right professional for your situation.

If all the costs are taken into account for CPA vs EA, for CPA it comes to around $3,000 while for EA it’s about $1,300. Another factor to take into account for EA vs CPA is the cost of taking the exam. That of the CPA is higher than the EA simply because it has more parts.

They must pass rigorous exams and can do difficult and demanding work for clients. And because tax attorney fees can often climb well into the four figures, both CPAs and EAs are also affordable alternatives for those who need help figuring out tax obligations. Be sure that if you choose to consult with either type of professional, you have a solid handle on your finances and measure your expectations. An enrolled agent, or EA, is a tax professional who focuses on managing tax arrangements for business or private entities. EAs boast a wide range of knowledge in tax-related subjects such as income, estate, gift, payroll, levies, returns, inheritance, non-profit and retirement taxes. Second, EAs work in a specialist niche of taxation and can be depended upon to prepare your tax return, the prior year’s unfiled returns, and make sure that your business taxes are in order.

In addition to CPAs and EAs, tax attorneys can also represent you in front of the IRS for tax return prep, unpaid taxes, collections, appeals, and all other tax-related matters. The main distinction between a tax attorney and a CPA or an enrolled agent is that a tax attorney can represent you in Tax Court. Only a very very small number of EAs and CPAs have that right, which can be earned by passing a test for non-attorney Tax Court practice. If you have a legal concern about tax fraud or evasion charges, a tax attorney can also represent you in criminal court.

EA vs CPA: Comparing the Requirements, Salaries, and Careers of Enrolled Agents and CPAs

Many CPAs start out in audit firms, but as they accumulate experience, they can launch their own CPA firms and have their own clients. Explore the key differences between a CPA vs. an EA, including their qualifications and areas of expertise. EAs have a national credential that gives them unlimited practice rights¹ to represent any taxpayer for any tax case across all IRS jurisdictions. Simply put, EAs can do all the things that CPAs can do when it comes to tax. The following TurboTax Online offers may be available for tax year 2024. Intuit reserves the right to modify or terminate any offer at any time for any reason in its sole discretion.

Once EAs have passed their qualifying exam, the federal government recognizes them as tax specialists. Typical EA responsibilities include representing business or individual clients in tax audits, tax appeals and tax collections. Additionally, EAs can also provide tax advice, tax enrolled agent vs cpa return filing and more. Unlike attorneys and CPAs—who are state licensed and who may or may not choose to specialize in taxes—all enrolled agents specialize in taxation.

You probably have a lot of basic questions if you’re trying to compare tax professionals in your area. So, before you pick an EA or CPA, check out these common questions people have about hiring these two types of tax professionals. Once all the requirements are met, CPAs are licensed by their state boards of accountancy. Each state also has its own rules for maintaining the license, but most require at least 40 hours of continuing education per year. CPAs help clients set and achieve financial goals through money management and financial planning. These goals could include anything from putting a down payment for a home to opening a new branch of business across the country.

They’re typically adept at dealing with the IRS, and some EAs even worked as IRS agents before opening their own practices. 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. There are a few different kinds of tax specialists you may be able to employ. Depending on your tax situation, you may want to work with an Enrolled Agent or a Certified Public Accountant. Learn all about EA vs. CPA and which professional is right for you. Working with an adviser may come with potential downsides, such as payment of fees (which will reduce returns).

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. To understand the difference between an EA and a CPA, it’s helpful to start with the responsibilities and day-to-day work of each. Another main distinction, and potential downside is that CPAs can only work in the state(s) in which they are licensed. EAs, meanwhile, are federally licensed and can work in all 50 states. I’ve passed both exams and the CPA exams were way harder, even after a Master’s in Taxation. All these are very important for calculating tax payable and preparing returns which a CPA is also very adept at.

The Enrolled Agent vs CPA salary both at the start of the career as well as the top end is vastly dissimilar. Let’s start by comparing and contrasting the work responsibilities of each credential. A simple tax situation, like a sole proprietorship with few deductions, might only need an EA. You might need a CPA if you have a partnership or corporation with multiple shareholders.