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.
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. Unless otherwise stated, each offer is not available in combination with any other TurboTax offers. Certain discount offers may not be valid for mobile in-app purchases and may be available only for a limited period of time. For your own piece of mind, you’ll want to check the credentials of an EA or CPA before making a final decision on who to hire.
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.
Enrolled Agent (EA) vs. Certified Public Accountant (CPA): What’s the Difference?
Understanding the cost structure and considerations when hiring these professionals can help in making informed decisions. Choosing between an Enrolled Agent and a Certified Public Accountant depends largely on the specific nature and complexity of your financial needs. Considering the scope of services required, the intricacy of your financial situation, and potential cost implications can guide your decision. Each professional brings a unique set of skills and authorizations to the table.
CPA vs EA
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.
When you’re a Pro, you’re able to pick up tax filing, consultation, and bookkeeping jobs on our platform while maintaining your flexibility. Knowing the right forms and documents to claim each credit and deduction is daunting. Taxfyle connects you to a licensed CPA or EA who can take time-consuming bookkeeping work off your hands. Here’s a $30 coupon to access to a licensed CPA or EA who can do all the work for you. On the other hand, the CPA Exam has four parts and much broader content. The section equivalent to the EA exam is Regulation (REG), and only about 70% of the REG content directly relates to the EA exam.
Certified Public Accountants (CPAs):
Make an informed decision about which financial expert best serves your specific requirements. Stephanie Ng began her career as an investment banker at Lehman Brothers in New York and Morgan Stanley in Hong Kong. She later joined her client to work in the Group Finance Department, where she spent five years specializing in corporate finance, mergers and acquisitions, and debt refinancing.
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Enrolled agents also have the opportunity to earn extra money during tax season. I have a reader who actually made more during those few months than he usually earns for the year in retail. Imagine you’re a freelancer who’s just expanded your services across the country.
Should you choose both CPA licensure and EA credentials?
The primary difference between an EA and CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and typically have a broader knowledge of accounting and taxation. So, enrolled agent vs cpa if you’re thinking of hiring an EA or CPA, which one will fit your needs the best? To become an EA, candidates generally must pass a three-part test, apply for enrollment with the IRS, and pass a background check (including verification of past tax compliance). Certain IRS employees don’t have to take the exam because of their experience with the tax agency. 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.
Applicants undergo a background check to ensure they meet IRS standards regarding tax compliance. Department of the Treasury, which grants and oversees their practice rights. This federal oversight ensures a consistent standard of practice for EAs across all states. Their authorization stems from Treasury Department regulations governing practice before the IRS.
- Certified Public Accountants, or CPAs, are licensed accountants with the statutory privilege to sign an audit report.
- That translates to quicker reconciliations, reduced errors, and improved financial visibility for your business.
- If you require a professional to handle your straightforward tax needs, an EA may be the right choice.
- If you have accounting needs with a micro focus, working with an EA could be the perfect fit for you.
- Whether opting for the specialized tax knowledge of an EA or the broader financial expertise of a CPA, making an informed decision ensures effective management of your financial affairs.
- CPAs often possess specialized industry knowledge and certifications, enabling them to cater to specific industries such as healthcare, finance, or technology.
- However, the CPA Exam covers four different subfields of accountancy.
- Choosing between an EA and CPA certification also depends on the career opportunities and flexibility you seek.
- They’re also a great option if you need tax preparation and planning advice for an individual or business.
- 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.
- As Forbes magazine suggests, “Enrolled agents are a valuable resource for taxpayers seeking expert tax advice and representation.”
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.
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.
