Finally, once you pass the tax preparer vs cpa EA exam and are ready to become an enrolled agent, you’ll have to pay the IRS $140 to complete the enrollment process. Over the course of becoming an EA, you’ll also want to consider additional enrolled agent exam costs covering retakes, testing appointment reschedules, and continuing education courses. Think about the kind of tax services you need, like tax preparation, tax planning, or IRS representation.
What is an EA (Enrolled Agent)?
Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals. 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. The Enrolled Agent exam is a comprehensive assessment of an individual’s knowledge and understanding of federal tax laws and regulations. It tests applicants on their ability to prepare tax returns, navigate complex tax codes, and effectively represent clients in front of the IRS.
Choosing Between EAs and CPAs for Tax Resolution
They commonly find employment in public trial balance accounting firms, corporate finance departments, and even government agencies. The versatility of these roles allows them to apply their expertise in different contexts, from public accounting to investment firms. Tax season is here, and you’re probably wondering whether you should hire an Enrolled Agent (EA) or a Certified Public Accountant (CPA).
- The education requirements for CPAs are around 150 hours of undergraduate, but EAs need five years of IRS experience.
- In fact, you can schedule and sit for the exam as soon as you obtain a Personal Tax Identification Number (PTIN), even if you are still in college.
- The three exams can be taken in any order, but a candidate must pass all three within a two-year window.
- In contrast, EAs are specialized tax practitioners licensed federally by the IRS, focusing exclusively on tax-related issues.
- They’re also a great option if you need tax preparation and planning advice for an individual or business.
What are the Key Differences
- The firm prides itself on its team of highly skilled professionals who cater to a diverse clientele, ranging from individuals to businesses with varying financial needs.
- Consider your schedule, personal responsibilities, and other commitments when selecting an exam that aligns with your availability and study preferences.
- Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.
- The depth of knowledge required for the CPA exam is often considered more rigorous than that of the EA exam.
- Both enrolled agents and CPAs can supply their clients with superior service.
- A Certified Public Accountant (CPA) is a licensed accounting professional.
- Don’t ignore the assistance from the professionals because tax issues are complicated and need a wide range of specialties.
They must also pass the Uniform CPA exam, a rigorous four-part test that assesses their knowledge and skills in various accounting disciplines. State boards regulate the licensing process, which adds another layer of oversight and ensures that CPAs meet high professional standards. Enrolled agent status is the highest certification given out by the IRS. They are authorized to represent taxpayers in audits, appeals, and collections. As you may recall, the EA exam has one fewer part (three total) than the CPA Exam (four).
Scope of Services
To become a CPA, candidates must pass a four-part exam and comply with education and experience requirements. The exam is the same from state to state, but every state has its own education and experience requirements. Most states require at least a bachelor’s degree and some previous public accounting experience under the supervision of a licensed CPA. In Bookstime 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.
