How EA differs vs CPA
- a m
- Apr 2
- 1 min read
1. Focus & Specialization:
Enrolled Agent (EA): Specializes only in taxes. Federally licensed by the IRS. Allowed to rep taxpayers during audits, collections, and appeals.
Certified Public Accountant (CPA): Broader focus - accounting, auditing, financial planning, and business consulting. Licensed by state boards.
2. Licensing & Regulation:
EAs - federal level, practice in all 50 states without needing additional certifications.
CPAs - licensed by individual states, working in multiple states, depend on state reciprocity rules.
3. Representation Before the IRS:
Both EAs and CPAs can represent clients before the IRS, but EAs specialize in it as their main role.
4. Who Should You Hire?
EA = If you only need tax help (filing, IRS issues, tax planning)
CPA = If you need broader financial services like audits, business accounting, or financial consulting
Comparison of key competencies
Overall Advantage of This Individual vs. a CPA:
✅ Integrated Approach: Can combine tax strategy with investment and risk management.
✅ More Sophisticated Advisory: Ideal for high-net-worth individuals, businesses, and investment firms.
✅ Regulatory & Compliance Knowledge: Manage complex tax, investment, and financial regulations.
This individual would be far more valuable to clients needing advanced financial planning beyond accounting and tax compliance.
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