An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before. Enrolled agents tend to specialize in taxation.
The Key Differences between a Certified Public Accountant and an Enrolled Agent are
Enrolled Agents (EAs) are federally authorized tax practitioners who can represent taxpayers before the IRS and provide tax advice and file tax returns.
Certified Public Accountants (CPAs) are state-licensed accounting professionals who may provide auditing, accounting, business advising, corporate accounting, tax consulting, forensic accounting, and financial planning services.
To become an EA, candidates must pass a three-part test, apply to the IRS, and pass a background check. To become a CPA, candidates must pass a four-part exam and comply with education and experience requirements.
EAs specialize in taxation, while CPAs can specialize in taxation and more.
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