EA vs CPA: The Difference Is in the Details

With a more secure, easy-to-use platform and an average Pro experience of 12 years, there’s no beating Taxfyle. It’s important to carefully consider your needs and choose a qualified professional to meet them. Both CPAs and EAs are qualified professionals who can provide valuable services, but they have different areas of expertise and may not be suitable for all situations. While EAs and CPAs enrolled agent salary can work in similar environments and industries, the EA career is more specialized and applies more to tax professionals as opposed to the accounting profession as a whole. As demand increases for tax advice due to changes in the tax law, the demand for EAs is also going to increase. An EA who starts their own business may have a higher earning potential than the average EA or CPA salary.

Benefits of Using an Enrolled Agent

Tax-related issues can be handled by an enrolled agent because they are not only familiar with the law, but also know how to deal with the unique circumstances. The services of an enrolled agent are especially useful if you file returns in more than one state, as they can work across state lines. Tax returns for businesses can also be prepared by a CPA, but just in the state in which they are licensed. Here are some of the ways in which enrolled agents differ from other tax professionals. One of the most important jobs of an enrolled agent is representing taxpayers before the IRS at every level of administration – examinations, collections, and appeals.

Time Requirement Difference

EAs and CPAs can both expect to make a good living in the accounting field. According to Glassdoor Opens in new window, the average salary for EAs is around $59,000 per year. That number reflects https://www.bookstime.com/articles/trust-accounting-for-lawyers the base pay and does not include tips, commissions, profit shares, etc. All features, services, support, prices, offers, terms and conditions are subject to change without notice.

EA vs. CPA: Which is Right for You?

• Keep the continuing education and ethical requirements in mind if you select someone from a directory.
• Taxes are incredibly complex, so we may not have been able to answer your question in the article.
• Like EAs, CPAs are also subject to ongoing educational requirements, as well as a code of ethics to ensure professional standards.
• If you have committed tax fraud, for example, underreported your income, claimed false deductions, or claimed credits that you did not earn, then you could be suspected of tax fraud.

All in all, while there may be exceptions to the rule, the CPA license generally has a much higher barrier of entry than the EA credential. Is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer. Knowing which one to go with will depend on your own personal needs. This article outlines the differences between these two tax pros.

• Not a ll specialize in taxation, and some specialize in more than one service.
• Consider the continuing education and ethical requirements if you choose someone from a directory.
• Are you on the crossroads of choosing between becoming an Enrolled Agent (EA) and a Certified Public Accountant (CPA)?
• Those that specialize in tax preparation can also typically help you with tax and financial planning, accounting needs, and most other financial tasks that you might have.
• Enrolled agents that have an NAEA membership are also subject to a code of ethics and rules of professional conduct.
• It includes various regulations governing IRS collections and audit procedures.

CPAs are federally approved to represent you in all matters before the IRS. Those that specialize in tax preparation can also typically help you with tax and financial planning, accounting needs, and most other financial tasks that you might have. Look to a CPA to identify the credits and deductions you qualify for to increase your tax refund and help lower your tax bill. A CPA’s expertise is based on accounting and auditing, but most CPAs provide tax filing services as well.

Costs and Processes of Becoming an EA and CPA

• By contrast, Enrolled Agents (EAs) specialize in tax-related work.
• If you have any questions about this subject or about what type of help is best for your tax and bookkeeping situation, please comment below or contact us.
• If you plan to hire a tax preparer with skills and experience, visit Secur Accounting Outsourced Tax Preparation Services for more information.
• A tax attorney or IRS enrolled agent can assist you in navigating the process of the investigation.
• These courses can span a broader range of topics, including financial accounting, auditing, ethics, and even specialized areas like forensic accounting or cybersecurity.
• The reason they’re referred to as “enrolled” is that they have special licenses from the government.

How can Taxfyle help?