Hiring an EA or a CPA to Do Your Taxes - What’s the Difference?
Did you know an EA (Enrolled Agent) can take care of your taxes, similar to a CPA? The difference is an EA is a federally authorized tax practitioner, where a CPA is licensed on a state-by-state basis. Plus, and EA can represent you before the IRS for tax issues including audits, collections and appeals.
EA's are required to understand not only the complexity of today’s tax code and how it applies to you, but also how constant changes affect your liability.
EA 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.
Only EA's are required to demonstrate to the IRS their competence in all areas of taxation, representation and ethics before they are awarded unlimited representation rights to represent taxpayers before IRS. Unlike attorneys and CPAs, who are state-licensed.
Most Enrolled Agents operate accounting practices and compete with CPA's, bookkeepers and other accountants. Because the are regulated at the federal level, they can work across state borders, whereas CPA's must meet requirements of any state they wish to practice in.
We are IRS Enrolled Agents at Cherokee Tax Group, and we're ready to show you the difference.