Enrolled Agent vs CPA: Difference Between Tax Professionals

Is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer. Liz Weston, Certified Financial Planner, is a personal finance columnist for the Los Angeles Times and NerdWallet. Questions may be sent to her at 3940 Laurel Canyon, https://www.bookstime.com/ No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com. Liz Weston, Certified Financial Planner, is a personal finance columnist for NerdWallet. If you report check fraud to your bank promptly — typically within 30 to 60 days of your statement date, depending on state law — then you should be made whole.

Should you choose both CPA licensure and EA credentials?

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• In this path, you can work at any company or industry and expect to make an average salary of $68,000 – $125,000³.
• CPAs must maintain high ethical standards, which, combined with their experience, reduces the likelihood of being audited.
• CPAs also tend to be in higher demand than EAs, but that’s probably only because CPA is a better-known license than EA.
• Additionally, EAs can also provide tax advice, tax return filing and more.
• The exam is the same no matter which state it’s taken in, but every state has its own education and experience requirements.

In general, any criminal offense resulting in a felony conviction under federal tax laws or a felony conviction related to dishonesty or a breach of trust, that is less than ten years old. Get unlimited advice, an expert final review and your maximum refund, guaranteed. If you need help with an IRS issue, such as a collection problem or an audit, then an EA might be your best bet.

Making the Right Choice: Evaluating Your Tax and Financial Needs

This means that the CPA is a more broad professional title compared to an EA. A CPA, for example, could work as an auditor, or provide financial management services to businesses and individuals. EAs are also qualified to provide professional tax advice, tax return filing, and management of a whole host of taxes including income, payroll, estate, retirement taxes, and more. The enrolled agent vs CPA journey both require relevent work experience, passing an exam and fulfilling continued professional education (CPE) requirements. Where they vary is in the time nad effort needed to cross their respective finish lines. CPAs have a well-earned reputation for being experts in accounting, compliance and finance management.

EA vs. CPA: What’s the Difference?

When deciding between an EA or a CPA, you will see that both types of professionals are well-qualified. They can both deliver the financial guidance you may need for your taxes. However, which one you should consult depends on which issue you want to resolve. In conclusion, choosing between EAs and CPAs hinges on your specific tax and financial needs.

Contact the Office of Enrollment

CPAs can provide a much wider scope of tax services than an EA can. What’s more, general population demand is greater for CPAs than EAs. On the other hand, CPAs are a US-specific designation granted by individual states within the United States. Education requirements for a CPA credential, include a bachelor’s degree in accounting, 150 credit hours in the accounting field, passing the Uniform CPA Exam, and a work experience requirement. In many states, anyone (and everyone) can hang a sign that says “tax preparer” with no experience or education required.

Some taxpayers choose to outsource their tax filing to a big-name tax preparation service like H&R Block or Jackson Hewitt. This is a popular solution tax preparer vs cpa because it is inexpensive and relatively quick. Typically, these companies will provide two types of services – tax return checks and tax preparation.

Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. Enrolled agents are certified by the IRS and can practice anywhere in the United States. Though the IRS certifies other types of tax professionals, such as enrolled actuaries and registered tax return preparers, their practice rights are limited.

• Any tax professional with an IRS preparer tax identification number (PTIN) is authorized to prepare federal tax returns.
• Naturally, you should consider the qualifications and experience of any accounting professional you work with.
• Simply put, EAs can do all the things that CPAs can do when it comes to tax.
• Sample test questions are also available as examples of the types of questions that may appear on the examination.
• Where they vary is in the time nad effort needed to cross their respective finish lines.

Learn the exam content.

How do you determine if a person passes or fails? What is the passing score? (reviewed Oct. 19,