We are regularly asked, “What is an Enrolled Agent (EA)?”
Although there are over 50,000 Enrolled Agents (EA’s) nationwide, many folks are not familiar with the term so I thought I’d give a brief review.
I’ll start out with a direct quote from the IRS website, “Enrolled agent status is the highest credential the IRS awards.”
OK, that’s sounds real good but what does an EA actually do?
An EA can prepare your taxes, but so can CPA’s and a half million others at the national chains and the local mom and pop operations. But that where the similarity stops.
I have prepared a chart to compare the differences. IMPORTANT: There are excellent tax preparers who are unlicensed, or who are CPA’s or who are EA’s. There are also some very bad tax preparers who are unlicensed, or who are CPA’s or who are EA’s. One of the best tax preparers I know has been preparing taxes for over 30 years but is unlicensed.
The point here is not to make any of the three groups look bad, but to point out the differences.
UNDERSTANDING THE DIFFERENCEBETWEEN TAX RETURN PREPARERS |
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ITEM |
ENROLLED AGENT (EA) |
CERTIFIED PUBLIC ACCOUNTANT (CPA) |
NON-LICENSED PREPARER(Note: this includes hundreds of thousands of preparers including most at the national and regional tax preparation chains, as well as at local mom & pop tax preparers) |
| Testing – total time alloted | 3 Exams totaling 10.5 hours | Varies by state | NONE |
| Testing – time related to taxes | 100% of exam | Usually, 25% of exam | NONE |
| How many test questions? | 300 | Varies by state | NONE |
| Continuing Education required – average hours per year | 24 | Varies by state | NONE – Although an employer may require some continuing education |
| Continuing Education required – hours per year if a member of NAEA | 30 | Not Applicable | Not Applicable |
| Continuing Education required – hours per year for tax preparers at Heritage Income Tax. | 40 | Not Applicable | Not Applicable |
| Can represent clients before the IRS if they prepared the original return | YES | YES | YES |
| Can attend an office audit on behalf of a client without the client being present | YES | YES | NO |
| Can represent clients other than those they prepared themselves before the IRS. | YES | YES | NO |
| Can represent clients at all levels of the IRS. | YES | YES | NO |
| Can represent clients for lien releases, garnishment releases, payment arrangements, debt collection, offers in compromize, and all dealings before the IRS | YES | YES | NO |
| Credential granted by: | IRS – with authority to practice nationwide | State – with authority to practice in the state where they are licensed | NO Credential |
