CPA vs enrolled agent vs tax preparer
Three kinds of tax help in California, what each is licensed to do, and how to check them.
| CPA | Enrolled agent (EA) | Tax preparer (CTEC) | |
|---|---|---|---|
| Licensed by | California Board of Accountancy (state) | IRS (federal) | Registered with the California Tax Education Council |
| Can prepare tax returns | Yes | Yes | Yes |
| Can represent you before the IRS (audits, collections, appeals) | Yes, unlimited | Yes, unlimited | Limited (only returns they prepared, under the IRS AFSP program, and not in all matters) |
| Audits and reviewed financial statements (attest work) | Yes, only CPAs | No | No |
| Typical uses | Business accounting, audits, complex tax, financial statements for lenders | Tax-focused work, IRS problems | Individual and simple returns |
| How to verify | DCA license search | IRS directory of preparers | CTEC preparer lookup |
Attorneys can also represent taxpayers before the IRS. In California, anyone paid to prepare returns who is not a CPA, EA, attorney or bank/trust exempt preparer must register with CTEC.
General information, not tax or legal advice. Rules change; confirm with the IRS, the California Board of Accountancy and CTEC.