Why should you choose an EA instead of a CPA to do your taxes?

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 What is the difference between an EA and a CPA? 

There are two types of tax professionals: EAs and CPAs. Both types have unique roles and strengths.

 

What is an EA?

EAs, or Enrolled Agents, are federally-authorized tax preparers who specialize in taxation. They represent taxpayers before the IRS and can provide expert advice and guidance on any tax issue. EAs must meet requirements set by the IRS to become licensed.

 

What is a CPA?

CPAs, or Certified Public Accountants, are licensed accountants who specialize in providing financial advice and services to businesses and individuals. They typically prepare taxes, review and consult on financial statements, and provide audit services. 

 

How do EAs and CPAs differ in regard to tax services?

The primary difference between EAs and CPAs lies in the type of work they do. Both professions require a strong understanding of accounting principles and financial regulations. Additionally, both are able to prepare tax returns for individuals and businesses, as well as provide other tax-related services.

While an EA’s job is focused on taxation, a CPA’s responsibilities are much broader. As a result, an EA is considered a taxation specialist because of their knowledge about the tax code and their ability to help individuals and businesses navigate complex tax laws.

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EAs are expected to have a deep understanding of federal and state tax codes, as well as thorough knowledge of the IRS’ policies and procedures. They must be able to analyze financial information, identify potential problems with clients’ taxes, and provide sound advice on how to address issues. In addition, EAs may be called upon to represent clients before the IRS and other government agencies.

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Citation and resource to learn more about a career as an EA or CPA.