Enrolled Agent Vs CPA

July 10, 2012 by  Filed under: Taxes 

Choosing between an Enrolled Agent and CPA

Both Enrolled Agents (EA) and Certified Public Accountants are tax specialists that can supply invaluable assistance and superb advice for people with tax issues or issues with the IRS. Each has their own unique capabilities and bring something different to the table. When trying to determine which you should consult, research and learn what each has to offer, and can best aid you based on your situation.

Despite any dissimilarities, both certified public accountants and Enrolled Agents have many things in common. Both have a a solid background in tax accounting and both are qualified to help you prepare and file your tax returns. Make your decision with the understanding that this is most likely a long term business relationship. The persons that typically need the services of a tax professional, have the need for this level of advisement for several years.

What is an Enrolled Agent?

While you might not of heard of EA’s, they have been around since just after the Civil War, originally created to investigate fraudulent claims. These tax experts are licensed by the Department of Treasury and are authorized to represent you to the IRS.

EA’s offer the following services:

• Prepare Tax Returns and Tax Forms

• Provide tax advice in regards to estates, corporations and trusts as well as to individual persons and their families

• Tax assistance and advice with both IRS audits and notices

• Negotiate directly with the IRS on your behalf on issue concerning tax relief planning

• Collections action from a field collections agent, or Revenue Officer

• General audit investigation that covers multiple years

• Releasing liens, wage garnishments, levies, etc.

• Administrative Appeals involvement

• Trying to reduce penalties

• Payroll tax issues

• Filing an Offer in Compromise

EA’s have more experience regarding the aforementioned items than CPA’s. Conversely, if your tax issues have more to do with bookkeeping or accounting, a CPA is definitely your best choice of tax advisor.

Certified Public Accountant (CPA)

CPAs are regulated by the state government. They specialize in tax problems that are intrinsically related to accounting or bookkeeping. These would include deductions, investment valuations and investment planning. CPA’s frequently represent individuals who’re self-employed or companies because their training allows them to decipher financial statements as well as offer advice on business issues.

CPA’s are more expensive than EA’s, this is because they typically have a wider range of experience related to tax issues. CPA’s can assist you with issues ranging from investment strategies to estate planning and long range tax planning.

Enrolled Agent vs CPA

The differences between CPA’s and EA’s can best be summarized this way. Enrolled Agents are experts on income taxes, both for individuals and businesses. CPA’s are experts in all other things related to taxes, this includes personal finance, valuation, real estate taxes, and business taxes.

Costen Tax Group provides IRS tax resolution services and tax debt relief services to small businesses and individuals. Since 1999, we have helped hundreds of taxpayers resolve their IRS and state issues. We are trained professionals who will handle your case with honesty and integrity.
We are Enrolled Agents (EA). EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.

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