Instead, they are licensed by the IRS, and they play an important role in representing taxpayers before the IRS. The profession is long established, having first been created in 1884 following fraudulent Civil War-era tax claims. retained earnings At MyRQB, we offer outsourced bookkeeping services for small-to-midsize businesses who need time to focus on the fundamentals of running a company.

• Enrolled Agents (EAs) are federally-authorized tax practitioners recognized for their expertise in tax-related issues.
• Once they’ve done so, they can use their expanded tax knowledge to return to the CPA Exam, pass it, and get their CPA license as well.
• Once you click “continue,” you will be brought to a third-party website.
• A remote bookkeeper is cost-effective, flexible, and experienced to help your organization manage your fiscal resources.
• This federal licensing process guarantees that EAs maintain high ethical standards and are well-equipped to handle sensitive tax matters.
• As you can see, you only have a certain amount of time to pass the EA and CPA exams.

Choosing Between EAs and CPAs for Tax Resolution

For tax purposes, a CPA’s main differentiator is the ability to attest an audit, which means it affirms to the IRS that financial statements are truthful. To accomplish that, a CPA will request bank statements and other proof, which limits the possibility of mistakes. Taxes are incredibly complex, so we may not have been able to answer your question in the article. Get $30 off a tax consultation with a licensed CPA or EA, and we’ll be sure to provide you with a robust, bespoke answer to whatever tax problems you may have.

How much do EAs and CPAs near me charge to file a tax return?

• However, you’ll find varying degrees of difficulty in the exam prerequisites and the exam format.
• A US EA is an authorized Internal Revenue Service (IRS) tax advisor with federally approved representation rights.
• So, if the CPA appeals to you, then sign up for my free CPA course to learn more about the process of earning the CPA.
• Enrolled Agents (EA) and Certified Public Accountant (CPA) are licensed professionals who can handle the tax issues of an individual or a business.
• Note that the website may still be a third-party website even the format is similar to the Becker.com website.

All tax professionals are not created equal—and knowing the differences could be an advantage in managing your tax liability. Registered tax return preparers have even fewer requirements and need only pass a minimal competency test. The Enrolled Agent designation is ideal for individuals who have a keen interest in taxation and aspire to become tax professionals. Whether you’re already working in the accounting field or looking for a new career path, the EA exam can help you build credibility and expertise in federal taxation.

Tax Debt in America: Key Statistics and Trends

In general, CPAs tend to work for public accounting firms, but they also work independently, for large corporations, and in other settings. After a candidate has passed the qualifying exam, and a final suitability and background check, the federal government then recognizes them as EA tax professionals. An EA is the highest credential awarded by the IRS for tax professionals. As a result, enrolled agents are considered experts on practically all taxation topics. Before you get into the differences, you must understand who an Enrolled Law Firm Accounts Receivable Management Agent is.

Specialization and Expertise

Checking their fee structure and included services can also help you make an informed decision. When it comes to tax representation and resolving tax problems, both Enrolled Agents (EAs) and Certified Public Accountants (CPAs) play crucial roles. However, their approaches and areas of expertise can differ significantly, impacting how they address tax-related issues. In addition to academic qualifications, aspiring CPAs must acquire 1-2 years of relevant professional work experience in accounting. They must also pass the Uniform CPA exam, a rigorous four-part test that assesses their knowledge and skills in various accounting disciplines.

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• However, you can specialize in an area like tax preparation or tax resolution.
• Aspiring EAs must also apply for enrollment with the IRS and undergo a background check to confirm their suitability for the role.
• While many accountants will take the steps to earn their CPA designation, it’s important to note that not every accountant is a CPA.
• 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.
• Adtalem Global Education is not responsible for the security, contents and accuracy of any information provided on the third-party website.

Additionally, the questions on the REG tax preparer vs cpa CPA Exam section are harder than those on the EA exam. The EA questions are easier, so most candidates only need a few months to pass the EA exam as opposed to the months typically needed to pass the CPA Exam. In this case, the benefit of the EA exam is that the sooner you can get licensed, the sooner you and your clients can enjoy your improved status with the IRS.

What Is a Certified Public Accountant (CPA) and How Is It Different from an EA?

However, CPAs might offer additional services and depth of expertise that could be worth the higher cost. 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. 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, if you’re thinking of hiring an EA or CPA, which one will fit your needs the best?