IRS Enrolled Agent vs. CPA: What’s the Difference?

A CPA in Mesa, AZ, is qualified to handle your taxes, but, sometimes, your financial situation is more complex. Individuals and business entities alike often enlist enrolled agents (EAs) for additional peace of mind.

What is an enrolled agent vs. a CPA — and when is an EA the right choice for you?

What is an IRS Enrolled Agent?

An IRS enrolled agent is a federally-certified professional who specializes in taxes for any entity required to file taxes. An EA has either passed a three-part comprehensive IRS exam or has earned their certification through professional experience with the IRS. Routine continuing education courses ensure that all Mesa Eas stay up with pertinent policies and practices.

What is a CPA?

A CPA is a Certified Public Accountant. Across the country and here in Mesa, AZ, a CPA undergoes rigorous education and training to ensure they are prepared to handle financial planning.

A CPA must complete and pass the Uniform CPA Examination — a nationally governed test — in addition to a comprehensive program. Routine continuing education courses ensure that all Mesa CPAs stay up to date with pertinent policies and practices.

Attorneys, CPAs, and EAs can represent the clients on behalf of the IRS.

When to Hire an Enrolled Agent vs. CPA in Mesa AZ

While an EA is qualified to prepare taxes, their scope of practice is much more extensive. Both individuals and businesses hire EAs when they want to protect themselves from potentially substantial implications. For example, an EA is recognized by the federal government and is authorized to represent citizens and entities before the IRS in the instance of an audit.

When seeking an accounting professional to manage your finances, it is important to consider the significant differences between an enrolled agent and a CPA in Mesa, AZ.

Responsibilities of an Enrolled Agent

It’s understandable to remain protective of your business finances. Whether you work with an EA or CPA, a credentialed professional will protect you from potential filing errors and keep your accounts in good standing. The following include some of the complex responsibilities of an EA:

Tax Preparation and Filing: An EA can assist in both preparing and filing taxes. Your Mesa accountant will ensure that all documents are completed correctly in compliance with state and federal law. They will also be sure to deduct any expenses.
Objective View: When an individual within the company grants financial advice or recommendations, they may be too immersed in the business to give objective advice. A tax professional can view your business from the outside, which allows them to provide you with a trustworthy yet objective view.
Legal Compliance: An EA can ensure that all records and documents are filed according to the regulations set out by the government. Unfortunately, an inexperienced person completing business documents could unintentionally make errors which could put you at risk for legal action. An EA or CPA in Mesa, AZ, will complete all accounting with precision to be sure that no state or federal laws are compromised. Any IRS Enrolled Agent in Mesa will have detailed insight into the authorized practices of a compliant business.

Take Your Accounting a Step Further With an IRS Enrolled Agent

M&M Accounting is far more than your typical accounting service, offering you an extra layer of protection with our accountants certified with the IRS.

Take the stress out of your accounting!

For long term client relationships or quick clean ups.