Enrolled Agent vs CPA: Which Certification is Better for You?

Tax return preparers are a vital part of the U.S. tax system. About 56 percent of taxpayers use tax professionals to prepare their returns. As for employment situations, jobs for CPAs and EAs usually take place in different environments. Specifically, enrolled agents usually don’t work for a firm. They actually have their own clients and can, therefore, work at home with flexible hours. On the other hand, many CPAs start off in audit firms, but as they accumulate experience, they can launch their own practices and acquire their own clients.

• Department of the Treasury to represent taxpayers before the IRS for audits, collections, and appeals, according to the National Association of Enrolled Agents .
• Although no formal credentials are required to work as a tax preparer in the U.S., hiring one with a professional license protects your interests.
• There is nothing easy about deciding to sell the company you have poured much of your time and money into over the years.

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• The second eligibility criteria to become an enrolled agent is respective candidate must work at IRS for at least 5 years in any position where he/she can interpret and apply the tax code.
• Companies with extremely complex issues sometimes prefer a CPA.
• EAs must pass a three-part series of tests called the Special Enrollment Examination that covers individual and business tax laws and representation issues.
• Many people choose a specific career path based on potential earnings.
• This allows EAs to handle any tax matter, including preparation, IRS representation and consulting.

If you have any questions, please feel free to contact our offices. Our Enrolled Agent Enrolled Agents Vs Cpas professional faculty provide end to end assistance in getting EA certification.

Enrolled Agent vs CPA: Which is Better?

To earn an EA designation, they have to either be a former IRS employee or pass a comprehensive 2-day exam administered by the IRS. Then, there are continuing education requirements similar to those of CPAs. A certified public accountant license, for example, allows accountants to work in auditing, accounting, and financial planning. Enrolled agents may also become certified tax preparers and work with private companies. Many taxpayers assume that these companies employ the same CPAs and enrolled agents that they would have access to on their own.

You must then pass that section and any other unpassed sections within 18 months of the time you passed your second section. With such regulated deadlines, relying on aCPA review courseand studying consistently are essential for CPA Exam success. The only time you can’t take the EA exam is March-April.

Enrolled Agent vs CPA: Which One is Better for You?

Your expert will only sign and file your return if they believe it’s 100% correct and you are getting your best outcome possible. If you get a larger refund or smaller tax due from another tax preparer, we’ll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. If you pay an IRS or state penalty because of an error that a TurboTax tax expert or CPA made while acting as a signed preparer for your return, we’ll pay you the penalty and interest.

The less time you take to get the designation, the sooner you and your clients can enjoy your improved status with the IRS. From the perspective of the IRS, CPAs and EAs are on the same level. Both types of accountants can represent clients during an audit. Using a review course is just as essential to passing the CPA Exam as it is the EA exam , and CPA Exam prep is also pricier. The best CPA review courses will run you about $1,700 on average.

Additionally, as part of the evaluation of your enrollment application, the IRS will conduct a suitability test. This test will include a review of your personal tax compliance. You need to know the answer when you’re contemplating whether to earn the enrolled agent designation or the Certified Public Accountant certification. Tax Preparers looking to further their careers have several options open to them, and these are two of the most popular. Which one you choose will depend on your areas of interest and expertise. Additionally, you will need to decide how much time, money, and energy you must put into meeting the requirements. EAs possess a vast amount of knowledge on all things tax related.

• CPAs are very beneficial for business owners because they have experience with all things finance-related, and that includes reviewed, audited financial statements, bookkeeping.
• Pathward does not charge a fee for this service; please see your bank for details on its fees.
• EAs also keep their knowledge up with continuing education.
• All three parts of the SEE must be passed within a two-year window.
• The services of an enrolled agent are especially useful if you file returns in more than one state, as they can work across state lines.

Typically, these companies will provide two types of services – tax return checks and tax preparation. In a tax return check, taxpayers are responsible for preparing their taxes themselves, and then they are simply paying for someone to look over their work. With tax preparation, taxpayers send over all relevant documents and have an employee prepare and file their taxes on their behalf. This type of seasonal transactional relationship may provide some peace of mind, but it does nothing to prepare for future financial needs or subsequent tax filings. CPAs, or Certified Public Accountants, are licensed individuals with the statutory privilege to sign an audit report.