Anyone can be a paid tax return preparer as long as they have an IRS Preparer Tax Identification Number (PTIN). However, tax return preparers have differing levels of skills, education and expertise.

Licensed by the IRS, an enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a suitability check and a three-part Special Enrollment Examination, which is a comprehensive exam that requires them to demonstrate proficiency in federal tax planning, individual and business tax return preparation, and representation, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.

Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before. 

Unlike a CPA (who may, or may not practice in any area of “Tax”) an Enrolled Agent practices exclusively in the area of tax. Some EAs are both EAs and CPAs, and may practice in both tax and accounting.

Most CPAs focus more on “Accounting,” 

and when they have a Tax issue, they refer it to an EA or Tax Attorney to handle the tax aspects of their project.