Frequently Asked Questions

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The Internal Revenue Service describes the Enrolled Agent as follows:

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. 

site: https://www.irs.gov/tax-professionals/enrolled-agents/enrolled-agent-information

While both an Enrolled Agent (EA) and Certified Public Accountant (CPA) have the same rights to practice before the Internal Revenue Service, there are some important differences.

Enrolled Agents are tax professionals who can assist clients with preparing and filing tax returns, tax audits, collection issues, tax planning, and bookkeeping.

CPAs can hold a variety of positions or specialties in the accounting industry, including taxation. Some CPAs can also perform GAAP accounting, compile and review Financial Statements to comply with bank loan covenants, act as Chief Financial Officers for corporations, etc.

Both have continuing educations requirements:

Enrolled Agent:

• 72 hours of CPE credits over a 3 year period
• All CPE credits must be Taxation subjects other than the required Ethics
• Minimum of 16 CPE credits per year
• 2 credits of Ethics education per year

CPA

• 80 hours of CPE credits over a 2 year period
• 50% of total credits must be in technical subjects (GAAP Accounting,  Financial Statement Auditing, Governmental Auditing, Business Law, Economics, Finance, Information Technology, Management Services, Taxes etc.)
• Minimum 20 CPE credits per year (12 technical)
• CPE Credit allowed for non-technical subjects such as Business Management, Communication and Marketing, Computer Software and Applications, Personal Development, Personnel/Human Resources)
• 4 credits of Ethics education per 2 year period
• There may also be additional requirements depending on the State the CPA is licensed in.

An EA is authorized by the Federal government.

A CPA is licensed by their State government.

The above description is a brief summary of some differences that I believe are notable. The information provided is not intended to be a complete or detailed comparison or to indicate preference toward any particular professional designation.

We provide tax services for a variety of businesses including sole proprietorships, partnerships, LLCs, S-corporations, C-corporations, trusts, and estates.

You can schedule an appointment by calling our office at (805) 864-5688, emailing us at lindsay@eajambe.com or filling out the contact form on our website.

Yes, we offer tax planning services to help minimize your tax liability and maximize your tax savings.