What is the difference with a cpa and a federally licensed tax advisor?
I went to federally licensed agent to do my taxes he informed me that he was not a CPA and he said he was a specialist. What is the difference, is one better than the other?
I think what you are talking about is an enrolled agent.
An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.
Only Enrolled Agents are required to demonstrate to the IRS their competence in matters of taxation before they may represent a taxpayer before the IRS. Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all Enrolled Agents specialize in taxation. Enrolled Agents are the only taxpayer representatives who receive their right to practice from the U.S. government (CPAs and attorneys are licensed by the states).
CPAs are more expensive. If money is not an issue, I would go with a CPA because I think an enrolled agent works more for the IRS than for you.
May 31st, 2009 at 6:43 pm
I hope you misunderstood him. There are "enrolled agents" but not "federally licensed agents."
An enrolled agent takes a test and "enrolls" with the IRS. They take continuing ed and their entire focus is tax.
Because it doesn't sound as cool as tax attorney or CPA (like them, the EA can represent you before the IRS), an enrolled agent tends to charge a lot less per hour–and frankly does a better job. (My accounting degree had *one* 3-hour class on taxation…and I passed the CPA exam. I could barely do my taxes the next week, let alone anyone else's.)
References :
May 31st, 2009 at 6:52 pm
I think what you are talking about is an enrolled agent.
An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.
Only Enrolled Agents are required to demonstrate to the IRS their competence in matters of taxation before they may represent a taxpayer before the IRS. Unlike attorneys and CPAs, who may or may not choose to specialize in taxes, all Enrolled Agents specialize in taxation. Enrolled Agents are the only taxpayer representatives who receive their right to practice from the U.S. government (CPAs and attorneys are licensed by the states).
CPAs are more expensive. If money is not an issue, I would go with a CPA because I think an enrolled agent works more for the IRS than for you.
References :
http://www.naea.org/memberportal/Resources/ForTaxpayers/whatis_EA.htm
May 31st, 2009 at 7:16 pm
However, an Enrolled Agent is Licensed by the IRS to practice before the IRS.
References :