What is the difference between an Enrolled Agent and a CPA?
Both an Enrolled Agent and a Certified Public Accountant are credentials that require arduous effort and examination. One credential is administered by the state and the other is administered by the federal government.
A state credentialed CPA must complete 150 undergraduate hours and pass a four-part exam administered by the AICPA (American Institute of Certified Public Accountants). A CPA usually has a more expansive repertoire than an EA. CPA’s do not typically specialize in any one sector of accounting. Rather they can assist as advisors and consultants for all accounting, tax, and financial services for the businesses, individuals, and other organizations they may represent.
A federal credentialed Enrolled Agent must pass a 3-part comprehensive examination required by the IRS or have worked for the IRS a minimum of 5-years. An EA is a tax professional who focuses on managing tax arrangements for business or private entities. EA’s boast a wide range of knowledge in such tax-related subjects as income, estate, gift, payroll, levies, returns, inheritance, non-profit, and retirement taxes. Aside from tax preparation, an EA’s typical responsibility includes representing his/her clients’ businesses or individuals before the IRS on issues of audits, appeals, or tax collections. An EA is the highest credential the IRS awards. Both EA’s and CPA’s must uphold stringent ethics standards.
This material is compiled from sources SST believes to be reliable. The possibility of error does exist. The material is intended only as educational and may omit information on exceptions, qualifications, definitions, and effective dates. The reader should not rely solely on this material but should review original sources to determine the law and applicability for each situation. Neither the author nor Solid State Tax Service, LLC will be responsible for any error, omission, or inaccuracy under any circumstance.