A tax preparer is trained to prepare returns, but the credential varies. An Enrolled Agent (EA) is licensed by the IRS and can represent taxpayers on any tax matter. A CPA is licensed by a state after education, experience, and the CPA exam, and can prepare returns, represent taxpayers, and provide accounting and audit services. All paid preparers need an IRS Preparer Tax Identification Number (PTIN).
Side by Side
| Tax preparer | Enrolled Agent | CPA | |
|---|---|---|---|
| Licensed by | No license required (PTIN only) | IRS | State board of accountancy |
| Training | Varies | Passes the 3-part IRS Special Enrollment Exam, or qualifying IRS experience | Degree, accounting education hours, CPA exam, and supervised experience |
| Can represent you before the IRS | Limited | Yes, on any tax matter | Yes, on any tax matter |
| Accounting and audit work | No | No | Yes |
Tax Preparer
A person trained in tax law who prepares returns. Anyone paid to prepare federal returns needs a PTIN, but beyond that, training varies widely. Representation rights are limited.
Enrolled Agent
The highest credential the IRS awards, recognized in all 50 states. EAs pass all three parts of the IRS Special Enrollment Exam, or qualify through five years of relevant IRS work, and complete continuing education.
Certified Public Accountant
CPAs hold a degree, complete the required accounting education, pass the CPA exam, and complete supervised experience. They may specialize in tax, audit, or other areas. A CPA licensed to practice can advise on tax law and represent clients before the IRS.
Accountant and Bookkeeper
An accountant is trained in preparing and analyzing financial records and statements. A bookkeeper records a business's day-to-day transactions. Neither title, on its own, is a license.
Which One Do You Need?
For a simple return, a qualified preparer may be enough. For business returns, IRS problems, or planning, look for a CPA or Enrolled Agent who can also represent you if questions come up later.
Frequently Asked Questions
Is an Enrolled Agent as good as a CPA for taxes?
For tax matters, both can prepare returns and represent you before the IRS. CPAs also provide accounting and audit services, while EAs focus only on tax.
How can I check a CPA's license in Florida?
Florida CPA licenses can be verified through the Florida Department of Business and Professional Regulation's online license search.
Talk to St. Clair Advisory Group
Every situation is different. Our team in Cape Coral can review yours and tell you what applies.
This article is general information, not tax or legal advice for your situation. Tax rules change, and dates can shift for weekends, holidays, and IRS disaster relief. Confirm current rules with a tax professional before acting.