But a solid understanding of certain accreditations is key if you’re looking for a licensed tax professional to guide you through your tax needs. When making your decision about whom to work with, you may wonder about the differences between an enrolled agent and a certified public accountant . While professionals with both certifications have significant expertise, the choice between them will come down to your personal needs.

Using an Enrolled Agent for taxes is usually more cost-effective than hiring a CPA. EAs must abide by the provisions and ethical standards of the Department of Treasury’s Circular 230. To initially qualify, EAs must pass stringent testing , and are mandated to undergo extensive ongoing training every year. Bank products and services are offered by Pathward, N.A.

No one offers more ways to get tax help than H&R Block.

EAs boast a wide range of knowledge in such tax-related subjects as income, estate, gift, payroll, levies, returns, inheritance, non-profit and retirement taxes. All accounting professionals can find increased value from becoming an Enrolled Agent. The increased tax expertise offers new career opportunities, and a new designation shows your desire to continue learning and improving within the industry.

• That means in these cases you would be hiring someone with intimate, insider knowledge of the IRS, which can potentially be a huge advantage come tax time.
• At the same time, you’ll earn a competitive salary and gain work flexibility.
• Please check with your employer or benefits provider as they may not offer direct deposit or partial direct deposit.
• This is an optional tax refund-related loan from Pathward, N.A.; it is not your tax refund.
• CPAs typically do most of their work for public accounting firms of all sizes.
• Here’s what you need to know about tax filing for your small business.

At our firm, we use a combination of Tax Attorneys, Enrolled Agents, and CPAs working specifically on the areas they are best at for your case. For a more detailed look at the EA versus CPA Exams and a direct comparison of CMA vs CPA vs EA exams, check out our post on the difficulty of the EA exam. The steps to becoming a CPA or an EA are quite similar. As you’ll see, the basic steps are the same, but the manner in which you fulfill the requirements differs.

Enrolled Agent vs. CPA: Important Differences You Need to Know

The primary difference between an EA vs CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and more. Each state also has its own rules for maintaining the license, but most require at least 40 hours of continuing education per year, with four of those hours covering ethics. When you’re looking to hire a tax professional, you want someone knowledgeable — someone you can trust to get the job done and keep your personal information secure. To avoid getting scammed, the IRS suggests making sure that your tax preparer has an IRS Preparer Tax Identification Number . Avoid preparers who charge you a percentage of your refund, and never sign a blank or incomplete return. If you think you’ve been scammed, consult this guide and use Form A to file your complaint with the IRS.

This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.” A large number of Enrolled Agents are self-employed with practices that offer year-round services to their clients . CSEA offers many education and professional development courses to greatly help both new and experienced Enrolled Agents. We will not represent you before the IRS or state tax authority or provide legal advice. If we are not able to connect you to one of our tax professionals, we will refund the applicable TurboTax Live Business or TurboTax Live Full Service Business federal and/or state purchase price paid. When it comes to accounting and tax planning, you may get easily confused amid the sea of acronyms.

Let’s get to know each other

All features, services, support, prices, offers, terms and conditions are subject to change without notice. Complete 72 hours of continuing education every three years. EAs and CPAs can both be tax experts, and the work they do is often similar, but there are some differences between an EA vs CPA. To understand the difference between an EA and a CPA, you should start with the responsibilities and day-to-day work of each. You probably wouldn’t hire an unlicensed contractor to build your home. Nor would you go to a doctor who doesn’t have a license to practice medicine.

I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services do cpa firms hire enrolled agents to family and friends. Most large businesses tend to go with CPAs as they offer additional services, reviewed, audited financial statements for large bank loans. For smaller, medium-sized businesses looking to keep things simple, compliant, though, EAs could be better.

User reviews of professionals are based solely on objective criteria. An unfiled tax return can result in steep IRS penalties and interest. In addition to helping you file old taxes and ensure that you receive the maximum amount of deductions, enrolled agents are able to help you work through any penalties and interest you may incur.

Like the CPA designation, earning the enrolled agent status can improve salaries for these tax professionals. In 2019, enrolled agents brought home an average of $64,108 per year, reports the salary comparison site Payscale. This works out as an enrolled agent hourly rate of $21.93. There are plenty of smaller CPA firms out there who have more clients than they know what to do with. This is a great opportunity for an EA – they can come in and take quite a few tax related matters off a small practice owner’s hands. EAs can take on a variety of responsibilities and grow into the role of a tax professional.