If you really want to do a deep dive and get the specific requirements check out our full CPA requirements by state. Where you go to school to get your bachelor’s degree will be one cost, as well as if you continue on to get your master’s as part of the 150 credit hour requirement. The Special Enrollment Examination, or Enrolled Agent Exam, consists of three examinations. Each exam lasts 3.5 hours and contains 100 multiple-choice questions.

If you are an Enrolled Agent certification holder, you specialize in tax issues like preparing taxes for business entities and individuals. Whereas the Certified Public Accountant has even more advantages, the CPA certification holder could work for both public and private sectors. The jobs for CPAs include tax specialist, CFO, auditor, and controller. CPAs can work for large and small corporations/companies, government as well as non-profit organizations.

What does a Enrolled Agent do?

If you become an Enrolled Agent instead, you can represent taxpayers in front of the IRS. You can also specialize in other areas of taxation to help your clients. The Internal Revenue Service is constantly updating the tax code with the changing times and political climate in the United States. EAs have to be on top of the evolving tax laws since they work with them every day as tax practitioners.

To get started, you simply need to acquire a Personal Tax Identification Number (PTIN). When deciding on whether to hire a CPA or EA for tax preparation, it’s important to weigh up the pros and cons of each and to consider your own circumstances. Obviously, this can vary, but generally you’ll find that CPAs do the majority of their work for various public accounting firms in Los Angeles, or other cities nationwide. You can combine both credentials and further improve your career choices if you’re up to it. If you’re dreaming of making your fortunes in the financial sector, you should seriously consider a career as either a CPA or EA. Like CPAs, Enrolled agents wear many hats, and one of their core duties is tax auditing.

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At least 16 hours will need to be done every year, with two hours on ethics. As an EA, you must choose your CE (Continuing Education) hours from an approved IRS provider. It depends on the tax issue, whether it will keep you from becoming an enrolled agent. Typically, you cannot become an EA if you have overdue tax returns or unpaid taxes.

• If you want to go into tax preparation, this is one of the best career paths to go down.
• CPA vs EA debates are a common occurrence in the life of an aspirant seeking a job in the sphere of accountancy.
• According to PayScale, the average yearly salary for an EA is $48,987.
• EAs have the privilege to advise, prepare, and negotiate tax matters, providing valuable expertise in the complex world of tax laws and regulations.

As previously stated above, enrolled agents will need to pass the three-part test or have at least five years of experience working for the IRS. The test is exclusively about taxation, and the credential earned will come from the IRS. On the other hand, Certified Public Accountants work for businesses that require accounting and tax services. Typically, https://www.bookstime.com/articles/investing-activities their responsibilities include preparing financial accounts, providing audit services, and offering tax expertise. And according to the above definition, CPAs also have unlimited representation rights before the IRS. This position has the authority to represent taxpayers regarding matters dealing with the IRS (Internal Revenue Service).

What Is a Certified Public Accountant (CPA)?

For example, some states need 120 credit bachelor’s degree while others mostly require 150 credit college degree. Also, it is important to have done a relevant accounting and business course. A wide range of roles and handsome salaries are offered enrolled agent salary based on your experience and skills. Bryce Welker is a dynamic speaker, expert blogger, and founder of over 20 test prep websites. He shares his knowledge on Forbes, Inc.com, and Entreprenuer.com, empowering readers to boost their careers.

Unlike average tax preparers, EAs go through stringent testing and continuing education requirements to maintain their high level of competency. A certified public accountant (CPA), has passed the CPA exam to be an accounting specialist. They have to take part in state education and also gain work experience to become licensed. They prepare different types of client tax forms, from property taxes to income taxes.