Normally, the clients of CPAs are businesses requiring both accounting and tax services. They’re also a great option if you need tax preparation and planning advice for an individual or business. An enrolled agent (EA) is a tax professional licensed by the IRS and is the highest credential the IRS awards. This privilege allows them to virtual accountant represent taxpayers in matters relating to the Internal Revenue Service (IRS), such as tax collections, audits, or appeals.
Can both EAs and CPAs represent clients before the IRS?
She also extended her role to management accounting and financial accounting and obtained her U.S. Otherwise, the testing tax preparer vs cpa window runs from May 1-February 28, and you can take the exam any time within that window. You can take the exam parts hours, days, or months apart, and you can arrange them in any order you like. If you fail an EA exam part, you can take it three more times (a total of four) during the testing window.
Find & Evaluate Licensed Tax Professionals to Solve Your Tax Issues
- You might also run across an EA or CPA using a per-form pricing model, which is a type of flat-fee approach.
- Also, it is important to have done a relevant accounting and business course.
- EAs have a national credential that gives them unlimited practice rights¹ to represent any taxpayer for any tax case across all IRS jurisdictions.
- Therefore, EAs tend to have more tax expertise than CPAs and are considered the top choice for handling these matters.
- Above all, it’s important to remember that while both professionals can provide a host of taxation services, CPAs generally offer a much wider scope of financial services.
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. Enrolled Agents (EA) and Certified Public Accountant (CPA) are licensed professionals who can handle the tax issues of an individual or a business. The primary difference between the two is that the license of an EA is authorized by the federal government, i.e., the Internal Revenue Service (IRS), giving them nationwide authority.
Advantages of Being a Certified Public Accountant
- While both are licensed tax professionals, their paths to certification and areas of expertise differ greatly.
- While the EA course has a great career scope, mainly focusing on taxation, the CPA course offers a broader scope, including accounting, auditing, and more.
- CPAs, with their broader accounting expertise and state licensure, are well-suited for complex financial needs and comprehensive financial planning.
- This includes understanding deductions, credits, and exemptions that can minimize a taxpayer’s liability.
- This unique ability allows them to handle a wide array of tax-related issues, including audits, collections, and appeals.
- They serve as auditors, ensuring that audited financial statements are accurate and comply with regulations.
- For example, a base flat fee for your tax return, plus additional hourly charges for any extra consultation needed.
The exam covers fundamental concepts of federal taxation, providing a solid foundation for individuals who are new to the field. With dedication and hard work, you can acquire the necessary knowledge and skills to excel in the Enrolled Agent exam and establish yourself as a tax professional. For more information about the tax and accounting services we provide, visit our Home Page! The friendly CPAs, Enrolled Agents, tax professionals, and bookkeepers and accountants at Massey and Company CPA are here to assist you. Massey and Company CPA offers a wide array of services that leverage the distinct expertise of both CPAs and EAs. The CPAs at the firm bring their extensive knowledge in financial accounting, corporate finance, and business consulting to help clients navigate complex financial landscapes.
Get $30 off your tax filing job today and access an affordable, licensed Tax Professional. With a more secure, easy-to-use platform and an average Pro experience of 12 years, there’s no beating Taxfyle. Tickmark, Inc. and its affiliates do not provide legal, tax or accounting advice. The information provided on this website bookkeeping does not, and is not intended to, constitute legal, tax or accounting advice or recommendations.