Understanding Tax Professionals: Enrolled Agents, CPAs, and General Tax Professionals

🧑‍💼Enrolled agents are tax professionals who have passed a special enrollment examination and can practice before the IRS.

📚CPAs are individuals who have passed an examination by the American Institute of Certified Public Accountants and have completed 120 credit hours of education.

💰General tax professionals vary in their level of knowledge and experience, ranging from beginners to seasoned professionals.

📝Enrolled agents and CPAs are required to complete continuing education hours, while general tax professionals have no such requirement.

🏛️Enrolled agents have a federal credential that allows them to practice across state lines, while CPAs have a state license that may not be valid in other states.

What is the difference between an enrolled agent and a CPA?

—Enrolled agents are tax professionals who have passed a special enrollment examination and can practice before the IRS, while CPAs are individuals who have passed an examination by the American Institute of Certified Public Accountants and have completed 120 credit hours of education.

Do general tax professionals have any educational requirements?

—General tax professionals do not have specific education requirements, but their knowledge and experience may vary.

Are enrolled agents and CPAs required to complete continuing education?

—Yes, enrolled agents must complete 72 hours of continuing education over a three-year period, while CPAs must complete 120 hours over the same period.

Can enrolled agents and CPAs represent individuals and businesses before the IRS?

—Yes, enrolled agents and CPAs can represent individuals, businesses, and other entities before the IRS. General tax professionals may not have this representation authority.

Can enrolled agents and CPAs practice across state lines?

—Enrolled agents have a federal credential that allows them to practice across state lines, while the state license of CPAs may not be valid in other states.

00:07Many people have confusions when it comes to understanding various types of tax professionals.

00:19Enrolled agents are tax professionals who have passed a special enrollment examination and can practice before the IRS.

00:46CPAs are individuals who have passed an examination by the American Institute of Certified Public Accountants and have completed 120 credit hours of education.

01:16General tax professionals vary in their level of knowledge and experience, ranging from beginners to seasoned professionals.

01:35Enrolled agents and CPAs are required to complete continuing education hours, while general tax professionals have no such requirement.

02:11Enrolled agents can represent individuals, businesses, and other entities before the IRS, while CPAs may have limitations in representation authority.

02:33Enrolled agents have a federal credential that allows them to practice across state lines, while the state license of CPAs may not be valid in other states.

03:02Enrolled agents and CPAs have recognized credentials, while general tax professionals may not have such prestigious designations.