Soooo…What exactly is an enrolled agent anyway?

An Enrolled Agent, whom most people call an EA, is a title given to a tax professional who has proven they have a deep knowledge of the tax code.  Enrolled Agent is the highest credential the IRS awards.

Enrolled agents have earned the privilege of representing taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.  Because they are federally aurhorized, they are able to represent taxpayers in all 50 states!

FUN FACT: Enrolled Agents have been regulated by Congress since 1884; even before CPAs existed 🤯 

Soooo…What exactly is the difference between an EA and a CPA?

Great Question! This is a question we get very often, and I think the question mostly stems from the fact that CPA is the title most people are familiar with.

To become a CPA you must have an undergratuate degree and pass the CPA exam which is comprised of 4 sections. The four sections test their knowledge in Auditing, Business Enviroment, Financial Accounting and Regulation.

On the other hand, to become an Enrolled Agent you need to pass a comprehensive 3-part exam all about tax. The three parts of the exam test their knowledge of Individual Tax, Business Tax, and Representation, Practices, and Procedures.

When it comes to tax, EAs and CPAs have equal standing before the IRS. They can both help you with tax preparation, resolving tax problems, and proactive tax planning.

When it comes to preparing financial statements, however, both can prepare them but only CPAs can issue audited financials.

And finally, both EAs and CPAs can represent taxpayers before the IRS during an audit.

We hope this brings a little clarity into what an enrolled agent is and how we can help you. If you have a tax question and would like a little guidance, please feel free to schedule a free discovery call HERE to see how we might be able to help.