Enrolled Agent vs. CPA: Which Tax Professional Do You Need?
Enrolled Agents, CPAs and tax attorneys can all help with taxes, but their training and focus are different. Here's what each one does and how to choose.
By the Enrolled Agents and CPAs at A&W Tax Services · Updated
What an Enrolled Agent is
An Enrolled Agent (EA) is a tax professional licensed by the IRS itself. To become one, a person passes a three-part IRS exam covering individual taxes, business taxes, and representation, practices and procedures — or qualifies through years of technical work at the IRS. EAs then complete 72 hours of continuing education every three years and pass a background and tax-compliance check.
The EA credential is entirely about taxes: preparing returns, planning and dealing with the IRS.
What a CPA is
A Certified Public Accountant (CPA) is licensed by a state board of accountancy after passing the CPA exam and meeting education and experience requirements. CPAs cover the full range of accounting, including financial statements, audits and consulting. Many specialize in tax, and only CPAs can perform audits of financial statements for businesses that need them.
Who can represent you before the IRS
Enrolled Agents, CPAs and attorneys all have unlimited practice rights: they can represent any taxpayer in audits, collections and appeals, on any tax matter. Preparers without one of these credentials can only represent clients in limited situations involving returns they prepared.
Which one fits your situation
- Individual or business tax returns: an EA or a CPA who focuses on tax
- IRS letters, audits, back taxes, payment plans or wage garnishment: an EA or CPA with representation experience
- Audited or reviewed financial statements for a lender or investors: a CPA
- Possible criminal tax issues or tax disputes headed to court: a tax attorney
Questions to ask any tax professional
- Are you an Enrolled Agent, CPA or attorney, and can I verify it?
- Will you sign my return with your preparer tax ID?
- Have you handled situations like mine?
- Can you represent me if the IRS contacts me about this return?
You can verify a preparer's credentials in the IRS Directory of Federal Tax Return Preparers, and a CPA's license through the state board of accountancy.