aman098 - PowerPoint PPT Presentation

About This Presentation
Title:

aman098

Description:

The Biggest Difference Between a CPA and an EA.This article is helpful to you while making a career decision. for whether to go for EA or CPA. Among others, Finance and Accounting students will find it helpful Enrolled Agent Classes.Enrolled Agent Course in India – PowerPoint PPT presentation

Number of Views:12
Slides: 7
Provided by: aman098

less

Transcript and Presenter's Notes

Title: aman098


1
Enrolled Agent vs CPA Which is Better?
2
The Biggest Difference Between a CPA and an EA
  • The EA and CPA are both credentialed however,
    one is regulated on the state level and the other
    on the federal level.
  • You must complete a minimum of 120 undergraduate
    hours and pass the AICPA administered CPA exam,
    consisting of four parts Auditing and
    Attestation, Business Environment and Concepts,
    Financial Accounting and Reporting, and
    Regulation, to become a CPA.
  • An EA is a federally-licensed tax practitioner
    with unlimited rights to represent taxpayers
    before the IRS. In order for you to become an EA,
    you have to pass a three-part comprehensive
    examination (Individuals, Businesses and
    Representation, Practice, and Procedure),
    covering all aspects of the tax code or you must
    have worked at the IRS for five years in a
    position where it was required of you as part of
    your job to interpret and apply the tax code on
    an ongoing basis

3
CPA vs. EA Time Requirement Differences
  • It will take about 8-9 years for you to become a
    CPA keeping in mind the requirement of college
    credit hours before you can sit for the CPA exam,
    the requirement of having worked under the direct
    supervision of a CPA before the exam, and the
    extremely low pass rates.
  • It takes way less time to become an EA. Pass the
    three-part exam administered by the IRS then
    apply for the license. You could also be exempt
    from taking the exam if you have a certain
    employment history with the IRS.

4

CPA vs EA Estimated costs
  • The cost of sitting for the exam depends entirely
    on the state in which you plan to be licensed.
    There is typically a registration fee and a
    separate fee for each section of the exam. If you
    must, you can also subscribe to a review course
    to help you prepare which will incur additional
    costs.
  • The license itself will amount to about 150, and
    to maintain the license, you will have to take
    ongoing continuing education (CE) courses. CE
    requirements differ from state to state and are
    cyclical. If you are lucky, your employers will
    pay for the cost of CPE or licensure.
  • The process for EA candidates is different and a
    lot simpler. First, they must obtain a PTIN
    (Personal Tax Identification Number) from the
    IRS, which costs 50. The cost of each exam
    section is 111.94. There is a 30 enrollment fee
    after youve passed the exam, therefore, bringing
    the total cost to 415.82. Enrolled agents must
    also take CE courses periodically.

5
CPA vs EA Career Path Differences
  • You will specialize in tax issues as an enrolled
    agent. This will include preparation of taxes for
    individuals and business entities, as well as
    advising clients. You will find plentiful job
    opportunities at tax preparation franchises or
    work for a CPA.
  • CPAs, on the other hand, have way more job
    opportunities at hand. CPAs can work in the
    private-sector, for the government, for
    individuals, for non-profits or be self employed

6
CPA vs EA Salary Differences
  • On an average, CPAs earn more than EAs. But
    salaries vary depending on where you are on the
    career continuum.
Write a Comment
User Comments (0)
About PowerShow.com