Most people are familiar with the CPA credentials, but what about an EA? The acronym CPA stands for Certified Public Accountant while EA stands for Enrolled Agent. Enrolled Agents specialize in taxation, and Certified Public Accountants can specialize in taxation or several other concentrations, like audits, forensic accounting and more.
The enrolled agent status is the highest credential awarded by the IRS. An enrolled agent is allowed unlimited representation rights before the IRS for taxpayers in all matters. Candidates are required to pass a series of exams, known as the IRS Special Enrollment Examination, before they are awarded with the EA credential. To maintain status with the IRS, EAs must attend continuing education classes throughout the year covering federal tax law and ethics. There is a code of conduct outlined in Circular 230 that all EAs must adhere to in their practice. Enrolled Agents specialize in taxation but may choose to specialize in a niche group of taxpayers.
A certified public accountant, CPA, is a professional designation provided to licensed accounting professionals. The CPA license is provided by the Board of Accountancy for each state. To become a CPA, there is a series of exams that must be passed, known as the Uniform CPA Exam. Each state oversees their own licensing. CPAs are also allowed unlimited representation rights before the IRS. A certified public accountant will usually choose a specific area to specialize in, much like a medical doctor. Some may choose taxation while others may choose another area and never prepare tax returns or represent taxpayers before the IRS.
Enrolled Agents and Certified Public Accountants are licensed professionals who can handle the tax issues of an individual or a business.
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