Enrolled Agent vs CPA: 2026 Guide for Tax Pros

Enrolled Agent vs CPA: Quick Overview for Tax Professionals

Every busy season, the same question lands in the inbox: “Should I become an Enrolled Agent or a CPA if I want to build a serious tax career?” Both credentials can change your earning power, but they are built for slightly different professionals at different stages of their careers.

Think of an Enrolled Agent (EA) as a federal tax specialist licensed by the IRS, and a CPA as a broader accounting and finance credential licensed by the states. If you love tax and want to get into practice quickly, EA is usually the shorter, sharper route; if you also see yourself in audit, controllership, or leadership roles, CPA gives you a wider playing field.

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Side‑by‑Side Snapshot: EA vs CPA in One Table

What Is an Enrolled Agent (EA)?

An Enrolled Agent is a tax professional who has earned the right to represent taxpayers before the IRS in all federal tax matters. It is the highest credential the IRS awards, and EAs have the same unlimited representation rights as CPAs and attorneys for federal tax matters.

In practice, this means an EA can step in when a client receives a frightening IRS letter, a notice of under‑reporting, or an audit appointment, and represent them from the first phone call to the final resolution. Because EA is a federal credential, you do not need new licenses when you or your clients move states, which is ideal for remote and multi‑state practices.

Scope of Practice and Typical EA Roles

Over the years, the EAs who thrive tend to build deep, practical tax expertise instead of spreading themselves across too many services. Typical EA work includes:

• Preparing federal (and often state) tax returns for individuals, small businesses, trusts, estates, and nonprofits.
• Tax planning and projections – for example, advising a sole proprietor when to incorporate or how to time capital gains.
• IRS representation in audits, appeals, and collections, including installment agreements and offers in compromise.
• Handling tax controversy matters, such as penalty abatement and correction of prior‑year returns.

One EA I spoke with started in a franchise doing basic returns, picked up the EA, and within two seasons was handling audits and notices full‑time – the work was more demanding, but the billing rate almost doubled. That kind of shift is common when you lean into representation and planning.

EA Examination (Special Enrollment Examination) Overview

Most candidates become EAs by passing the Special Enrollment Examination (SEE), a three‑part exam that mirrors real‑world IRS practice.

• Part 1 – Individuals: Income, deductions, credits, property transactions, retirement income, and individual filing issues.
• Part 2 – Businesses: Taxation of sole proprietors, partnerships, corporations, estates, trusts, and exempt organizations.
• Part 3 – Representation, Practices and Procedures: Circular 230, ethics, due diligence, penalty regimes, and IRS collections and appeals.

Each part has 100 multiple‑choice questions (including some unscored experimental questions) and allows about 3.5–4 hours of test time. You must pass all three parts within a rolling three‑year window, and Prometric centers run the exam most of the year with a short annual blackout for updates.

How to Become an Enrolled Agent

The path to becoming an EA involves three key steps:

1. Obtain a PTIN (Preparer Tax Identification Number) - Required before scheduling the exam. Get detailed PTIN application steps here
2. Pass the Special Enrollment Examination (SEE) - A three-part comprehensive tax exam
3. Apply for enrollment - Submit Form 23 and pass a suitability check. Complete enrollment registration process covered here

The SEE must be passed within three years, and candidates can take each part up to four times during each testing window (May 1 to February 28).

What Is a Certified Public Accountant (CPA)?

A Certified Public Accountant is a licensed accounting professional who has satisfied state education, examination, and experience requirements. Where the EA is laser‑focused on tax, the CPA is designed for broad responsibilities in financial reporting, audit, tax, and advisory.

In many jurisdictions, only CPAs can sign audit reports and certain attest services, and many employers still prefer or require CPAs for senior finance roles such as controller or CFO. That is why you often see CPAs at the partner table or in boardrooms even when their daily work still includes tax.

Scope of Practice and Typical CPA Roles

CPAs can do much of what EAs do in tax, and far more outside it. Typical paths include:

• Public accounting in audit or tax, progressing from staff to senior to manager and possibly partner.
• Corporate accounting roles such as financial accountant, controller, or finance manager.
• Specialized work in areas like forensic accounting, internal audit, risk management, and consulting.

In tax practice, CPAs handle complex entity structures, advanced planning for businesses and high‑net‑worth clients, and often supervise teams of preparers and EAs. The credential sends a strong signal to banks, investors, and boards that you understand the complete financial picture, not just the tax line.

CPA Exam Overview for Tax‑Focused Candidates

The Uniform CPA Exam is designed to test readiness for entry‑level CPA work, not just tax skills. While the exact structure evolves, it typically includes four sections:

• An auditing/attestation section focused on audit standards, evidence, and reporting.
• A financial accounting/reporting section covering GAAP, financial statements, and complex transactions.
• A regulation or tax‑oriented section covering federal taxation, ethics, and business law.
• A business or disciplines section testing governance, economics, technology, and risk.

Each section is four hours long and includes a mix of multiple‑choice questions and task‑based simulations; some sections also test written communication. Many tax‑oriented candidates find the tax/regulation section familiar but underestimate the work required by the financial reporting and audit papers.

Eligibility Requirements: EA vs CPA

One of the biggest practical differences between EA and CPA is the qualification process. An EA focuses on passing the exam and clearing an IRS suitability check; a CPA adds years of university study and supervised experience on top of the exam.

Knowing where you stand today academically and professionally will narrow your realistic options.

EA Eligibility and IRS Requirements

The IRS sets EA requirements at the federal level. To become an EA through the exam route, a candidate must:

• Obtain a PTIN (Preparer Tax Identification Number) before scheduling the SEE.
• Pass all three parts of the Special Enrollment Examination within the three‑year window.
• Clear an IRS suitability check, which looks at personal tax compliance and any history of professional misconduct.

There is no formal degree requirement, which is why the EA route is popular with experienced preparers, bookkeepers, and career‑changers who want to “step up” into representation work without going back for 150 credit hours.

CPA Eligibility and State Board Rules

CPA eligibility sits with the state boards, and each has slightly different rules, but there are strong common themes. Most states require:

• At least a bachelor’s degree and a total of 150 credit hours of post‑secondary education, including specified accounting and business subjects.
• One or more years of supervised accounting experience, usually under a licensed CPA, in public practice or qualifying corporate roles.
• Passing all four CPA exam sections within a set rolling period.
• An ethics exam or course in many jurisdictions.

If you are already on a university track, the CPA path can be built into your timeline; if not, the educational gap itself can be a significant investment.

Eligibility Comparison Chart (EA vs CPA)

Here is the “who can start tomorrow” view.

Exam Structure and Content: EA vs CPA

On paper both exams involve tax, but they are built for very different outcomes. EA is a tax exam that trains you for practical IRS work; CPA is a broad professional exam that expects fluency in accounting, audit, and business as well.

The structure itself tells you which kinds of candidates each exam favors.

EA Exam Structure, Syllabus and Format

The SEE is straightforward in structure but detailed in content.

• Parts: Individuals, Businesses, and Representation/Practices/Procedures.
• Question type: 100 multiple‑choice questions per part, no simulations or written essays.
• Test time: ~3.5–4 hours per sitting at Prometric centers.
• Content: Filing rules, income, deductions, credits, entity taxation, ethics, penalty regimes, and representationbefore the IRS.

Preparing for the SEE feels very similar to preparing for real client work in tax season: you spend more time on Pub 17, instructions, and IRS practice than on complex financial reporting theory.

CPA Exam Structure, Syllabus and Format

The CPA exam expects you to think like an entry‑level CPA in a firm.

• Sections: Four major sections spanning audit, financial reporting, tax/regulation, and business disciplines.
• Question types: Multiple‑choice plus task‑based simulations that demand research, calculations, and structured written answers.
• Test time: 4 hours per section.
• Content: GAAP and other reporting frameworks, audit methodology, federal taxation, business law, economics, technology, and risk.

Even tax‑oriented candidates must get comfortable with simulations and longer case‑style tasks, which is a shift from the purely objective format used in the EA exam.

Detailed timeline breakdown: How long does it take to become an Enrolled Agent?

Exam Difficulty: Which Is Harder, EA or CPA?

In practical terms, most candidates who have taken both will tell you: EA is challenging but focused; CPA is a marathon. That is reflected in study‑hour estimates and pass rates.

The right way to interpret this is not “EA is easy” but “EA lines up closely with everyday tax practice, while CPA expects you to be a generalist across multiple technical areas.”

EA Exam Difficulty and Study Time

For EA, you are looking at a serious but manageable commitment. Typical patterns:

• Around 80–100 hours of study each for the Individuals and Businesses parts, and 60–80 hours for Representation, totaling roughly 220–280 hours.
• Part‑wise pass rates often in the 60–75% range, which are higher than typical CPA section pass rates.
• Candidates who have already done one or two tax seasons often find Part 1 feels like “formalizing what I already do,” whereas new entrants need more time to build basics.

The most common mistake with EA is underestimating Part 2 – the variety of entities and special topics catches out candidates who only know individual returns.

CPA Exam Difficulty and Breadth of Coverage

The CPA exam is where even strong students learn humility. Key difficulty factors:

• Four long sections, each with their own detailed syllabus and simulations.
• Heavy financial reporting and auditing content that many tax‑only professionals have not touched since university, if at all.
• Section pass rates typically around 45–55%, which means multiple attempts are common.

Realistically, most candidates plan to spend 300–400+ hours studying for the whole exam, squeezed between work and life. The exam rewards discipline: those who work to a tight study calendar and do not leave significant gaps between sections tend to fare better.

Exam Difficulty Comparison: Tax Specialists vs Generalists

If you already live and breathe tax returns, the EA exam feels like a structured way to convert that experience into a credential; the CPA exam feels like a new degree on top of your old one.

If you enjoy financial reporting, audit, and business as much as tax, the CPA exam becomes more attractive because it mirrors the blended work you want to do anyway. For pure tax specialists, EA is often the more rational first step, and CPA is something to consider when you are ready to expand beyond tax.

Pass Rate Statistics and Trends

Pass rates are not destiny, but they are useful when planning time, money, and retake buffers. EA’s higher pass rates reflect its focused scope and multiple‑choice format, while CPA’s lower rates reflect its breadth and complexity.

Looking at trends also helps you avoid complacency: both exams evolve, and pass rates move when content or format changes.

EA Exam Pass Rates by Part

Recent data and exam‑prep analyses show:

• SEE pass rates by part often sit in the 60–75% zone, which is healthy but not trivial.
• Part 2 (Businesses) is frequently seen as the most demanding due to entities and special topics; Part 3 can feel surprisingly technical around procedure and ethics for those who only know “prepare and file.”

The takeaway: you can pass EA with a working‑professional schedule, but only if you treat each part as a real exam, not as an “add‑on” to busy season.

CPA Exam Pass Rates by Section

For CPA:

• Section pass rates typically hover around 45–55%, with financial reporting and audit often at the tougher end.
• Regulation (the tax‑heavy section) may show slightly better numbers, especially for candidates with tax experience, but it still covers law and ethics beyond typical EA scope.

Most candidates need at least one retake along the way. Building that into your budget and timeline is more realistic than expecting a clean sweep.

What Pass Rates Mean for Your Study Strategy

Here is how to read these statistics:

• EA: you can realistically plan for 3–12 months from first study session to final pass, especially if you stagger parts and use your live client work as reinforcement.
• CPA: even with focus, you are planning a 12–18‑month exam window, plus your education and experience, so you need strong employer and family support.

Higher EA pass rates mean a shorter, sharper risk window; lower CPA pass rates mean you need more financial and mental buffer.

Career Paths and Earning Potential: EA vs CPA

Both EA and CPA can support six‑figure careers, but the journey looks different. EAs usually monetize faster in tax‑only work; CPAs tend to unlock higher ceilings in firm leadership and corporate roles.

The right question is not “who earns more,” but “where do people like me usually land with this credential in 5–10 years?”

Typical EA Career Path in Tax Practice

A typical EA story looks like this:

• Start as a seasonal tax preparer, processing individual returns.
• Qualify as an EA and move into year‑round advisory and representation work.
• Over time, specialize – for example, in small‑business planning, expat returns, or controversy and resolution.

Because EAs can practice federally, many eventually open their own remote firms, serving clients across states, often with niche branding like “crypto tax EA” or “expat EA for US citizens abroad.” Income grows with specialization and the complexity of cases, not just number of returns.

Typical CPA Career Path in Tax and Beyond

CPA paths are more varied, which is part of their appeal. Everyday journeys include:

• Public accounting: three to six years in audit or tax, then promotion to manager and possibly partner.
• Corporate: moving from staff accountant to controller or finance manager, with some eventually becoming CFOs.
• Specialist lines: internal audit, risk management, transaction advisory, or forensic accounting.

Even CPAs who stay in tax often find that the credential gives them more influence in boardroom discussions and easier access to leadership roles.

Salary Snapshot: EA vs CPA in Tax‑Focused Roles

Based on industry surveys and provider data, typical salary bands look like this:

• Enrolled Agents:
  • Entry level: roughly 35,000–50,000 USD.
  • Mid‑level: around 50,000–75,000 USD.
  • Senior: 75,000–120,000+ USD, with self‑employed EAs and niche specialists often earning 60,000–150,000+ USD depending on client base and pricing.
• CPAs:
  • Entry level: roughly 45,000–60,000 USD.
  • Mid‑level: around 65,000–95,000 USD.
  • Senior/leadership: 95,000–175,000+ USD, with partners and owners in larger firms often crossing 200,000–500,000+ USD.

In pure tax roles, an experienced EA with a strong book can absolutely match or exceed many CPAs; the difference is that CPAs have more non‑tax routes to very high compensation.

Time, Cost and ROI: EA vs CPA for Tax Professionals

When candidates share their real constraints – kids, loans, geography – the conversation usually boils down to time, money, and flexibility. EA and CPA sit at different points on this triangle.

Time to Qualification: EA vs CPA Timeline

Realistic timelines look like this:

• EA timeline: 3–6 months of study, depending on how many hours per week you can dedicate, and most people are fully credentialed within 6–12 months of starting serious prep.
• CPA timeline: 4+ years of college (if not already completed), 6–12 months of intense exam preparation, and 1–2 years of supervised experience, leading to a total journey of roughly 5–7 years for most candidates.

If you already have the 150‑hour requirement and relevant experience, your incremental CPA timeline is shorter, but exam prep still usually runs over a year.

Direct and Indirect Costs for Each Path

Costs are not just exam fees; they include tuition, review courses, and lost income.b

• EA costs:
  • About 800 USD in exam fees for all three parts.
  • 500–2,000 USD for quality study materials, depending on provider and support level. Eduyush offers Surgent at 250 USD
  • Most candidates keep working full‑time, so opportunity cost is limited.
• CPA costs:
  • Tuition for a bachelor’s degree and extra credit hours to hit 150.
  • Exam application and section fees.
  • 1,000–4,000+ USD for CPA review courses. Eduyush offers Surgent Premier pass at 300 USD

By the time you add everything up, the CPA path often runs 30,000 USD or more, especially for those who need additional academic credits or need to step out of work to study.

ROI Considerations for Different Career Goals

From a return‑on‑investment standpoint:

• EA is usually the better near‑term ROI for someone whose primary goal is to move quickly into higher‑value tax work and charge more per hour or case.
• CPA can deliver a higher lifetime ROI for those who plan to use the credential to reach partner‑level roles, board‑facing finance positions, or high‑fee advisory work.

A practical strategy many follow is: use EA to get into serious tax work now, then evaluate whether CPA is worth the extra time and money once income and clarity increase.

Who Should Choose EA, CPA, or Both?

With hundreds of conversations behind this article, the patterns are surprisingly consistent: background, age, and destination matter more than abstract “which is better” debates.

EA Is Better If You…

EA tends to be the better first choice if you:

• Want to focus almost entirely on tax and IRS practice rather than audit or financial reporting.
• Need a credential you can earn in under a year while working.
• Do not currently meet or want to pursue the 150‑credit‑hour requirement.
• See yourself running a flexible or remote tax practice, potentially serving clients across multiple states.

If you already prepare returns and enjoy solving tax puzzles more than preparing financial statements, EA is usually the most natural next credential.

CPA Is Better If You…

CPA is a stronger fit if you:

• Want a broad career in accounting and finance, with options in audit, corporate roles, and advisory as well as tax.
• Are comfortable with a multi‑year journey combining university, exam prep, and supervised experience.
• Aspire to titles like controller, finance manager, partner, or CFO.
• Value the signal that a CPA sends to banks, investors, and boards.

If you are already on a degree path and enjoy financial accounting as much as tax, it is hard to ignore the long‑term leverage of the CPA credential.

Combining EA and CPA for Maximum Tax Credibility

For some professionals, the best answer is not EA vs CPA – it is EA now, CPA later.

A common sequence looks like this:

• Earn EA first to formalize tax expertise, start doing representation work, and increase billable value.
• Use that real‑world experience and extra income to support the longer CPA journey, if you decide you want broader options.

In practice, an EA + CPA combination is potent for someone who wants to lead a tax practice, handle complex cases, and still be taken seriously in broader financial conversations.

FAQs on Enrolled Agent vs CPA for Tax Professionals

These are the questions candidates ask most often in workshops and consultations.

Is an Enrolled Agent as Qualified as a CPA for Tax?

For federal tax matters, an EA is just as authorized as a CPA to represent taxpayers before the IRS, with the same unlimited representation rights. Where CPAs go beyond EAs is in areas like audits, attest services, and broader finance roles; where EAs go deeper is in day‑to‑day practical tax and IRS procedure.

Is the EA Examination Easier than the CPA Exam?

Most candidates who have seen both exams find EA more accessible: it is narrower, entirely multiple‑choice, and has higher pass rates. That said, it still demands roughly 220–280 focused study hours and a good handle on current tax law, especially if you do not already work in tax.

Which Credential Offers Better Long‑Term Growth in Tax?

Both can support excellent long‑term tax careers, but they position you differently. EA is ideal if you want to be known as the tax and IRS expert with a flexible practice; CPA is ideal if you want tax plus the option to move into firm leadership or corporate finance, where the credential carries extra weight.

Authored by Vicky Sarin, CA, who has spent over two decades mentoring tax and finance professionals on choosing the right qualification at the right stage of their careers.eduyush