You’re earning more income, and tax season is becoming too much to handle. You’re uncertain about deductions, puzzled over estimated tax payments, and worried about IRS audits. EAs must complete 72 hours of continuing education every three years to stay current with tax law so they can give the highest quality advice. For example, some states need 120 credit bachelor’s degree while enrolled agent vs cpa others mostly require 150 credit college degree.
- Their expertise is particularly beneficial for individuals and businesses seeking specialized tax advice.
- Certified public accountants, or CPAs, have a more flexible and expansive repertoire than EAs.
- You’ll need to decide for yourself which is a better fit for your skills and lifestyle.
- With TurboTax Live Assisted, our tax experts help you complete your taxes, fix any mistakes, and explain what’s next.
- Typically, their clients are businesses that need both accounting and tax services.
- EAs are tax experts who can represent clients before the IRS, making them highly valuable during tax season.
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Additionally, she created I Pass the CMA Exam, the first CMA help site. Her guidance and mentorship have helped hundreds of thousands of candidates pass their exams. ✅ An EA can handle multi-state tax obligations, deal with IRS communications, and keep your business tax compliant. Then there’s a small business owner who has an ecommerce business in several states. As notices of state tax regulations and IRS audits accumulate, sales taxes and employee withholdings are the furthest from the business owner’s mind. ✅ An EA would be ideal—they’re specialists in tax law, can assist in getting the best out of your deductions, guarantee compliance, and even represent you in front of the IRS if needed.
Build & Forecast IS, BS, CF from Scratch. For a more detailed look at the EA versus CPA Exams and a direct comparison of CMA vs CPA vs EA exams, check out our post on the difficulty of the EA exam. EAs are subject to a code of ethics and professional conduct, and they must abide by the IRS’s rules and regulations. EAs are also subject to oversight and discipline by the IRS Office of Professional Responsibility. But how does the Enrolled Agent (EA) role stack up against being a CPA?
CPA and EA Exams: Which is Harder?
After all, just because you can do something yourself, doesn’t mean you should. When you use Taxfyle, you’re guaranteed an affordable, licensed Professional. She is also the Executive Committee member responsible for Finance at New Sight Eye Care, a charity registered in the United Kingdom and Hong Kong. She oversees the financial aspect of New Sight in Hong Kong, including accounting, taxation, financial management, and compliance.
Certified Public Accountants (CPAs):
They’re also a great option if you need tax preparation and planning advice for an individual or business. CPAs cover a wide range of accounting services, including tax, auditing, financial reporting, and business tax consulting. They may specialize in specific areas like business valuation or forensic accounting. If you require a professional to handle your straightforward tax needs, an EA may be the right choice. However, a CPA may be better if you require broader financial guidance beyond taxes, need financial reporting, audits, or valuations, or seek expert investment and financial planning. Additionally, EAs can provide tax planning and tax advice, guiding clients through tax strategies and helping them plan for future tax obligations.
In terms of ongoing professional development, how do EAs and CPAs maintain their expertise?
This versatility allows CPAs to work in various industries and positions, offering greater career flexibility. Becoming a CPA involves specific educational qualifications, passing an examination, and meeting experience criteria. Candidates typically need a bachelor’s degree and at least 150 semester hours of education, often including a master’s degree. A CPA’s expertise is based in accounting, taxes, managing audits, and filing taxes, and CPAs are the only individuals that have the ability to sign off on audited financial statements. So if a business needs an attest service (an independent review of a company’s financial statement), then the CPA would be a good choice.
The EA credential is more focused on serving clients than the CPA credential. EAs and CPAs are highly knowledgeable and experienced professionals who must adhere to strict ethical standards. Choosing an enrolled agent (EA) or a certified public accountant (CPA) ultimately depends on your specific tax situation.
Additionally, as part of the evaluation of your enrollment application, the IRS will conduct a suitability test. Becoming a Certified Public Accountant is a more extensive process, regulated at the state level. Aspiring CPAs generally need a bachelor’s degree, often requiring 150 semester hours of college coursework. After passing, candidates must fulfill state-specific experience requirements, typically one to two years of relevant accounting experience. Unlike CPAs, EAs can’t certify financial statements and provide public accounting outside of tax, which limits their ability to work in a broader capacity.
However, you still must pass all four parts of the CPA Exam within a rolling 30-month period. At that point, you have 30 months to pass the remaining three sections. Accordingly, you must then pass that section and any other un-passed sections within 30 months of the time you passed your second section. With such tight deadlines, relying on a CPA review course and faithfully adhering to a consistent study schedule is even more critical for achieving CPA Exam success. To become a CPA, an individual must have a college degree, pass the Uniform CPA Exam, and meet specific experience and ethical requirements as set by their state board of accountancy. EAs often specialize in tax matters, providing in-depth knowledge and expertise in this domain.
Professionals who earn this elite status from the IRS must adhere to strict ethical standards and complete 72 hours of continuing education coursework every three years. You should hire an EA if your business needs expert representation before the IRS, particularly for complex tax issues like audits or tax collections. EAs are ideal for federal tax matters and are specifically licensed to handle IRS disputes, tax appeals, and compliance. Hiring an EA may be the better fit if your primary concern is dealing with the IRS and staying compliant with ever-changing federal tax laws. An EA is the highest credential the IRS awards, specifically licensed to handle tax-related issues.
- In addition, states approve CPAs, while the federal government approves EAs.
- They must pass rigorous exams and can do difficult and demanding work for clients.
- Additionally, as we saw above, the process of earning an EA designation is substantially less expensive upfront.
Enrolled Agents are federally licensed tax practitioners specializing exclusively in taxation. They represent taxpayers before the Internal Revenue Service (IRS) in all tax matters, including audits, appeals, and collection issues. This authority extends to advising, preparing, and filing tax returns for individuals, partnerships, corporations, estates, and trusts. Certified Public Accountants (CPAs) are state-licensed accounting professionals with a broad scope of financial competence.
We offer bookkeeping, tax preparation, and audit management services to both individuals and small businesses in need of professional tax guidance. If you pursue the enrolled agent designation via the EA exam, you don’t have to meet an experience requirement. You’ll receive your exam results immediately, and once you’ve passed, you can apply for enrollment. 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. Their expertise and skills make EAs an attractive choice for law and accounting firms that want to provide their clients with the best possible tax preparation and representation services.
EAs are federally authorized tax practitioners who can represent taxpayers before the IRS on a wide variety of tax matters, including collections, IRS audits, and tax appeals. They generally have no limits on who they can represent, and they can appear before any IRS office. It is mandatory for all candidates applying for a position at EA to complete a background check. In addition to other experience requirements, an EA must adhere to ethical standards established by the US Department of Treasury. Many individuals and businesses during tax season seek professional assistance to navigate the often complex tax code. However, with various credentials and titles floating around, deciding who to turn to can be confusing.
Their federal license, granted by the IRS, allows them to practice and represent taxpayers across all U.S. jurisdictions. This federal authorization signifies their proficiency in managing tax-related issues at a national level. CPAs can handle both accounting and tax matters.A CPA’s expertise mainly lies in accounting and auditing, but most can provide tax filing services as well. This combination is attractive to small businesses that need both audit and tax services, preferably from the same team. When you bring a certified public accountant (CPA) on board, you’re getting someone who’s spent years in school, intense exams, and actual experience to earn their title.