EAs stay in tax and primarily deal with collections, appeals, bookkeeping and tax prep for individuals. So if you’re passionate about tax and aren’t interested in auditing or financial reporting, becoming an EA may be a good fit. Your timing and location can impact the cost of tax preparation, too. If you’re trying to line up an EA or CPA at the peak of tax season, then you might have to pay more. There are several potential advantages to hiring a local tax professional.

It is mandatory for all candidates applying for a position at EA to complete a background check. In addition to other experience requirements, an EA must adhere to ethical standards established by the US Department of Treasury. According to Payscale.com, enrolled agents typically make between $33K to $80K a year, while CPAs make between $49K to $115K per year. Enrolled agents also have the opportunity to earn extra money during tax season. I have a reader who actually made more during those few months than he usually earns for the year in retail.

• Beyond that, however, knowing which one to choose depends primarily on your unique circumstances.
• While both EAs and CPAs are qualified to provide tax services, there are differences between the two.
• Once EAs have passed their qualifying exam, the federal government recognizes them as tax specialists.
• If you require a professional to handle your straightforward tax needs, an EA may be the right choice.

CPA vs EA: What does Reddit Have to Say?

The main difference between these two processes is the manner in which you fulfill the basic requirements. This content is part of a larger collection of resources on becoming a tax preparer. Anything you may want to know about the process, salary expectations, work expectations, and more can be found in the guides within this collection. If either of these don’t look like the right fit, there’s more information about other tax jobs we have available. Free filing of simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and student loan interest).

What is a certified public accountant (CPA)?

• Ultimately, the decision comes down to a person’s financial goals and the complexity of their tax situation.
• But how does the Enrolled Agent (EA) role stack up against being a CPA?
• Enrolled Agents advise, represent and prepare tax returns for individuals, partnerships, corporations, estates, trusts and any entities with tax-reporting requirements.

If you start with the CPA Exam and struggle with the REG section, you can temporarily change course by passing the EA exam and earning the EA designation. Then, with your improved understanding of tax accounting, you can come back to REG, pass the CPA Exam, and, ultimately, get the CPA license as well. Still, when we compare REG’s taxation section to the EA exam’s taxation section, we uncover quite a lot of overlap. In fact, the amount of shared content can help candidates earn both certifications at the same time. Candidates who have trouble passing REG can shift their focus to passing the EA exam and earning the EA designation.

What Is a Certified Public Accountant (CPA)?

Over the course of becoming an EA, you’ll also want to consider additional enrolled agent exam costs covering retakes, testing appointment reschedules, and continuing education courses. Most people consider Part 1 (Individuals) and Part 3 (Representation, Practices, and Procedures) to be the easiest. In fact, some experienced tax professionals can pass these parts without much studying. Enrolled agents, or EAs, are tax preparers the IRS has authorized to represent taxpayers. Enrolled agent clients include individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. CPAs have a broader scope of practice that extends to auditing, financial accounting, and business consulting.

Get unlimited advice, an expert final review, and your maximum refund, guaranteed with TurboTax Live Assisted Basic. Also consider checking to see if an EA is a member of the NAEA, or if a CPA is a member of the AICPA or their state’s CPA society (such as CalCPA for California CPAs). These memberships can be a good indicator of their commitment to professional standards. If you want to verify a CPA’s qualifications and credentials, check with the Board of Accountancy for the state where the CPA is located. A financial advisor can help you maximize the tax efficiency of your investments.

For your own piece of mind, you’ll want to check the credentials of an EA or CPA before making a final decision on who to hire. To get this information, it’s a good idea to ask for an initial consultation where you can learn about an EA or CPA’s fees and other important matters about the services they offer. An EA or CPA who is nearby might also have a network of local professionals, such as enrolled agent vs cpa lawyers and bankers, that you can tap into if you need additional financial services. If you need help with an IRS issue, such as a collection problem or a tax audit, an EA can often meet your needs.

She later joined her client to work in the Group Finance Department, where she spent five years specializing in corporate finance, mergers and acquisitions, and debt refinancing. She also extended her role to management accounting and financial accounting and obtained her U.S. If you choose the enrolled agent route, you can expect an annual salary of anywhere from $37,690 to $107,660, according to the U.S. This guide will provide an in-depth look at the CPA vs. EA designations. We’ll cover their roles, key differences, and the education and credentials required to become an EA or CPA.

Top 5 Reasons to Become a Certified Internal Auditor

Finally, if you’re wondering how the IRS views enrolled agents and CPAs, the answer is that the IRS puts them on the same level. If you already have the education and work experience to qualify for CPA licensure, then it makes the most sense to stay on that path. Also, the education, experience, and study necessary to become a CPA encompasses the necessary knowledge to become an EA—you would just need to take the exam. Having both your CPA license and your EA credential can improve your career trajectory and help you better serve your clients.

If you’re looking for a licensed tax professional to help guide you, a clear understanding of the most important tax accreditations and the differences between them will really save you time. IRS enrolled agents (EAs) are tax advisors who have been licensed by the IRS. They have demonstrated their expertise in tax matters by passing a rigorous examination. On the other hand, CPAs are a US-specific designation granted by individual states within the United States.

Enrolled Agents (EAs) are tax specialists certified by the federal government with the power to represent taxpayers before the Internal Revenue Service (IRS) for various tax matters. As a tax practitioner, they can handle tasks such as filing individual and business tax returns. Moreover, their services include resolving tax-related issues, representing clients before the IRS, and working toward a favorable tax resolution.

Tax Preparers looking to further their careers have several options open to them, and these are two of the most popular. Which one you choose will depend on your areas of interest and expertise. Additionally, you will need to decide how much time, money, and energy you must put into meeting the requirements. Additionally, the questions on the REG CPA Exam section are harder than those on the EA exam.

Whether you want an expert to do your taxes from start to finish, or expert help while you file on your own, TurboTax has expert-backed offerings to meet your needs. With TurboTax Live Assisted, our tax experts help you complete your taxes, fix any mistakes, and explain what’s next. Or, with TurboTax Live Full Service, a local tax expert matched to your unique situation will get your taxes done 100% right – as soon as today. Whichever plan you choose, you’ll get you taxes done with 100% accuracy and your maximum refund, guaranteed.Get started now by logging into TurboTax and file with confidence. You can also search the IRS’s online directory of tax return preparers to find both EAs and CPAs who hold professional credentials recognized by the tax agency.

For example, if you need help with IRS audits, look for a professional with expertise in this area. Think about the kind of tax services you need, like tax preparation, tax planning, or IRS representation. When considering whether you need an EA or a CPA, you can at least be assured that both are highly knowledgeable.

As you might expect, the higher level of education, more rigorous licensing, and necessary work experience pay off for a CPA vs. an EA in terms of salary. According to the BLS, the annual salary for accountants (including CPAs) ranges from $50,440 to $137,280. Their sole focus is being the go-to expert on tax laws to help clients navigate their cases with the IRS, like, for example, settling tax debt. Yes, experience and specialization matter when hiring an EA or CPA.