I have passed the Uniform CPA Examination and hope to be fully
certified by the end of the year (need to meet experience
requirement).  I am also studying for the CMA, and hope to obtain that
designation by year-end as well.  I'm wondering if it is worth
considering becoming an Enrolled Agent.  I have done a little bit of
research on the Internet, so I know the basics on what an EA is and
what the exam is like.  Can this designation help me "stand out," or
is it usually only pursued by those persons who aren't CPAs but wish
to provide tax services to the public (Would someone ask, "Why did you
bother with that?  You're already a CPA.").  I do not work in public
accounting, but I would like to begin a career in public sometime
soon.  Also, is there anything an EA can do that a CPA cannot, such as
represent a client during a "collections" proceeding?  Thanks for any
advice!

Dear mbd5044,

Sounds like you love to take exams. ;~)
That's cool. Get them all out of the way up front and
forget about them.


You'll find that there are many CPAs who have become Enrolled 
Agents. And many used to be EAs before getting their CPAs. 

In the past, upon becoming an attorney or CPA, a professional 
was forced to relinquish their EA standing. (Kind of like not
permitting dual citizenship.) But, believe it or not, the EA
community fought for the right of CPAs and attorneys to have
dual licenses. So, since about 5 or 8 years ago, you could 
be a CPA and an EA.

You will find that many EAs chose not to become CPAs. 
Many EAS  have advanced degrees. Some, like me, realized that 
we never wanted to do certified audits. My interest is in taxes. 

With an EA, all of my continuing education requirements are in
the tax areas. As a CPA, I'd have to do so many hours in audit,
management, etc. None of those things interest me on a day to 
day basis. 

The one drawback to all these certifications is that you'll 
need to track your CPE (continuing professional Education)
requirements and fulfillments carefully. Some courses may
satisfy all licenses. Others won't. So, you may have to take
some extra classes to cover all your certificates. 


Enough history. Why both? 

1) Well, even with the Uniform CPA exam, as a CPA, you still 
can't practice in ALL states. With an EA certification you can.
In fact, you can practice anywhere in the world where there are
expatriate Americans needing tax consulting or preparation. 

Being an EA is not as important in dealing with IRS across state
lines. It is important when dealing with state agencies 
across the country, in states where your CPA is not recognized. 

So if you plan to move, or have a traveling practice, or an 
online practice, with clients nationwide or statewide, it's a
big advantage to have that EA. 

2) You'll be dealing with IRS staff a great deal. And I don't
mean to denigrate anyone, but, you'll find that IRS auditors
and collectors tend to be more receptive to EAs. You see, CPAs
have a tendency to be rude and overbearing to IRS folks. Often, 
in their interactions, CPAs have talked down to them, or try
to pull the wool over their eyes. So, EAs have a better 
reputation within the Service.

Also, IRS professionals can become EAs, when they leave, 
if they have worked in certain capacities for 5 years or more.
So, there is a certain camaraderie, or identification that 
takes place. 

3) There are a few areas in IRS' Circular 230 (the tax professionals'
governing document) where EAs are granted some minor permissions
and CPAs aren't mentioned. I can't remember what they are. And they
are sufficiently insignificant that they don't often affect your
practice. 

4) There's something about EAs and attorneys being able to sit
for the Tax Court exam, without extra education. 
CPAs aren't mentioned. But, I suspect that if a CPA wanted to 
sit for the exam, they could talk their way into it.

Disadvantages?

More CPE you have to take.

More associations to join and dues to pay.


As to collections proceedings and audits - both CPAs and 
EAs can represent clients. It still requires a signed
power of attorney before any agency will speak with you. 


Now, I've only been doing taxes for about 25 tax seasons,
only about three of them in national CPA firms, so there
may be something I'm overlooking. Wait until I get more 
experience with new issues,...then I'll tell you what other
differences I've found. 

Seriously, though. Decide in what area of accounting or 
taxation you want to spend your energies. If you're going
to be doing large-scale corporate work, with conglomerates
that have operations in many states, or countries...that
extra little EA certification might just confer some extra
respect.

But that's just my opinion. 

Incidentally, I didn't even hear about EAs when I was in 
college. If I had, I'd never have spent a minute in those
CPA firms. (And that would have been my loss. What a wonderful
education I got.)

Best wishes

Your TaxMama-ga
BA, Accounting
MBA, International Business
Enrolled Agent

P.S. Some of my best friends are CPAs, and attorneys
and EAs and....

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Request for Answer Clarification by mbd5044-ga on 21 Mar 2003 18:03 PST

Very thorough answer, thanks TaxMama!  Just wondering, in your
industry experience (and personal opinion), since my ultimate goal is
to begin a career in public accounting, do you think firms might spend
a few extra minutes reading the ol' resume if they see an EA
designation on it?  I'm not sure if I want to spend my life doing tax,
but I'm willing to put in the study work if it will open more job
opportunities.

---

Clarification of Answer by taxmama-ga on 21 Mar 2003 19:03 PST

Hi MDB

Thanks for the feedback. 

In public accounting? 

The firms won't be nearly as impressed as they should be. 
Generally, the CPA world doesn't really understand the
designation. 

However, if you present it on your resume this way:
EA, Certified to represent taxpayers in all 50 states and US territories

Now, that might get a few nods and chin scratchings. 
At the very least, you'll get their attention. 

It never hurts to put things that stand out on a resume
and make them curious. They're forced to call you in and
talk to you. 

Once you get your foot in the door...the rest is easy. 
With that smile, you've got it made. 

Best wishes,

Your TaxMama-ga