EA vs CPA

What is an 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 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 knowledge of financial accounting and reporting, auditing, and taxes. A CPA has lots of accounting breadth but not necessarily tax depth. To become a CPA, one must have a bachelor's degree, pass 4 exams (only 1 that covers taxes), and obtain work experience with a supervisor that has an active CPA license. Similar to an EA, a CPA has unlimited practice rights in dealing with IRS matters for clients.

Why is an EA typically considered more of a tax expert than a CPA?

An EA is often considered more of a tax expert compared to a CPA due to the fact that an EA specializes in taxes while a CPA typically does not. An EA has to pass three in-depth exams focused solely on 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.