EA vs CPA

What is an Enrolled Agent (EA)?

All of our tax professionals are Enrolled Agents. In the simplest terms an Enrolled Agent, or EA, is an accounting professional who specializes in individual and business taxes. An Enrolled Agent license is the highest tax credential the IRS awards. Enrolled Agents have unlimited practice rights in representing taxpayers before the IRS. There are two ways to become an EA. The most common way is to pass a rigorous series of 3 exams covering individual taxes, business taxes, taxpayer representation before IRS, and ethics. The second way is to have at least five years work experience with the IRS. All EA candidates undergo a meticulous background check conducted by the IRS.

What is a CPA?

A Certified Public Accountant, or CPA, has broad knowledge of accounting, auditing, and taxes. A CPA has lots of accounting breadth but not necessarily tax depth. There are 4 CPA exams (only 1 that covers taxes). Similar to an EA, a CPA has unlimited practice rights in representing clients with the IRS.

An EA is typically more specialized in taxes than a CPA.

An EA is usually more specialized in taxes than a CPA due to the fact that an EA has to pass three in-depth tax exams focused on indiviudal and business taxes while a CPA only has to pass one tax exam. The three EA exams cover far more breadth and depth of tax subjects compared to the one CPA tax exam.