There are advantages of working with both a CPA and an Enrolled Agent tax specialist or just EA for short. However, you might find that an EA has more options for filing taxes and has more rights for representation than a CPA holds. An EA is licensed by the federal government, which is why the person has more options when it comes to interacting with the IRS and other agencies.

Those who want to become an EA have to take classes and pass an examination that consists of three parts. Each part covers the components of tax codes and how to use the tax codes for individuals and businesses. A background check is also included before an EA begins working. This is one of the reasons as to why it’s often better to choose an EA over a CPA because the background check looks into the tax history of the agent and the financial background.

An EA enrolls in all types of tax situations and has access to information about tax codes and details that a CPA usually doesn’t. This means that you will usually receive more support if you have to communicate with the IRS and that you will receive more information about your tax situation if you use an EA instead of a CPA. An EA understands almost everything that relates to taxes, such as gift taxes, retirement, and non-profit tax situations.

It’s sometimes difficult to know which person to use unless you have an understanding of your tax situation. An EA offers more options and can perform more services at one time so that you don’t have to hire multiple agents to help with filing taxes or communicating with the IRS. An EA can file your taxes and look for all of the deductions that are available as well as other ways that you can get the most deductions that you haven’t thought about.

Complicated tax situations are often better handled by an EA because this person has taken exams pertaining to a variety of areas involving taxes. When a large amount of money is involved, it’s often better to work with an EA instead of a CPA since the agent understands more about large sums of money and taxes. An EA can focus on the finer details instead of the big picture.

One thing to keep in mind is that an EA is often a CPA who has decided to take more classes and examinations in order to learn more about how the IRS operates and to learn more about the tax laws. An EA usually isn’t interested in working with basic tax cases or completing simple files. An EA is often more interested in challenges, assisting in dissolving businesses, and working with detailed cases.

While there aren’t as many classes that an EA has to take compared to a CPA, there are more exams that need to be taken in order to practice as an EA, which means that you will work with someone who has to pass more tests and sustain a higher proficiency while working with taxes.