Enrolled Agent vs CPA: Which Career Wins in 2025?
Enrolled Agent vs CPA: Which Tax Career Path Is Right for You in 2025?
Choosing between becoming an Enrolled Agent (EA) or Certified Public Accountant (CPA) is one of the most important decisions for aspiring tax professionals. Both credentials offer lucrative career opportunities, but they follow dramatically different paths to get there.
This comprehensive comparison breaks down everything you need to know about EA vs CPA credentials, from exam difficulty and career prospects to earning potential and professional requirements.
What Is an Enrolled Agent?
An Enrolled Agent is a tax professional who has earned the privilege of representing taxpayers before the Internal Revenue Service. Enrolled agent status is the highest credential the IRS awards, and EAs possess unlimited practice rights to represent any taxpayer on any tax matter before the IRS.
Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. Unlike other tax professionals, EAs can represent clients in all 50 states without additional licensing requirements.
How to Become an Enrolled Agent
The path to becoming an EA involves three key steps:
- Obtain a PTIN (Preparer Tax Identification Number) - Required before scheduling the exam. Get detailed PTIN application steps here
- Pass the Special Enrollment Examination (SEE) - A three-part comprehensive tax exam
- 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 met state education requirements, passed the Uniform CPA Examination, and fulfilled experience requirements. CPAs have broader professional authority than EAs, including the ability to perform audits and attest to financial statements.
How to Become a CPA
The CPA path typically requires:
- Education Requirements - Usually 150 credit hours of college education
- Pass the CPA Exam - Four-part examination covering accounting, auditing, business, and regulation
- Experience Requirements - 1-2 years of supervised accounting experience (varies by state)
- State Licensing - Meet specific state requirements and maintain continuing education
EA vs CPA: Exam Comparison
Enrolled Agent Exam (SEE)
Structure:
- 3 parts: Individuals, Businesses, Representation/Practices/Procedures
- 100 multiple-choice questions per part (85 scored, 15 experimental)
- 3.5 hours per part
- Pass rates: Part 1 (72%), Part 2 (68%), Part 3 (75%)
- Overall average: 71.7% pass rate
Cost:
- $267 per exam part ($801 total for all three parts)
- Study materials: $500-$2,000 depending on prep course
- Premium EA review courses like Surgent available with specialized pricing
Study Time:
- 80-100 hours for Parts 1 and 2, 60-80 hours for Part 3
- Total: 220-280 hours average
- Complete EA exam preparation strategies and tips here
- Learn more about EA exam study strategies here
CPA Exam
Structure:
- 4 parts: Auditing (AUD), Business (BEC), Financial Accounting (FAR), Regulation (REG)
- Multiple-choice questions, task-based simulations, written communication
- 4 hours per part
- Average pass rate: ~50% across all parts
Cost:
- $300+ per exam part (varies by state)
- Study materials: $1,000-$4,000+
- Additional costs for education requirements
Study Time:
- 300-400+ hours total study time
- Significantly more complex than EA exam
Career Scope and Practice Rights
Enrolled Agent Practice Rights
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.
EAs Can:
- Represent any taxpayer before the IRS
- Handle all types of tax matters (individual, business, estate, gift)
- Practice in all 50 states
- Prepare tax returns
- Provide tax planning and advice
- Represent clients in audits, appeals, and collections
EAs Cannot:
- Perform financial statement audits
- Attest to financial statements
- Provide certain types of business consulting unrelated to taxes
CPA Practice Rights
CPAs have broader professional authority but more complex licensing requirements:
CPAs Can:
- All EA functions plus:
- Perform financial statement audits
- Attest to financial statements
- Provide business consulting
- Handle complex business transactions
- Serve as expert witnesses in court
Limitations:
- Must be licensed in each state where they practice
- Higher continuing education requirements
- More stringent ethical and professional standards
Salary and Earning Potential
Enrolled Agent Salary Data
According to industry surveys:
- Entry Level: $35,000 - $50,000
- Mid-Level: $50,000 - $75,000
- Senior Level: $75,000 - $120,000+
- Self-Employed EAs: $60,000 - $150,000+ (highly variable)
CPA Salary Data
CPAs typically command higher salaries:
- Entry Level: $45,000 - $60,000
- Mid-Level: $65,000 - $95,000
- Senior Level: $95,000 - $175,000+
- Partners/Owners: $200,000 - $500,000+
Important Note: Salary varies significantly by location, specialization, and type of employer. EAs focusing on high-net-worth tax planning can earn comparable amounts to CPAs.
Time to Credential Comparison
Speed to Market: EA Advantage
Enrolled Agent Timeline:
- 3-6 months study time
- Can start practicing immediately after passing and enrollment
- Total time: 6-12 months from decision to practice
- Detailed timeline breakdown: How long does it take to become an Enrolled Agent?
CPA Timeline:
- 4+ years college education (if not already completed)
- 6-12 months exam preparation
- 1-2 years experience requirement
- Total time: 5-7 years for most candidates
It only takes most people between three months to a year to pass the EA Exam and become fully credentialed, making it significantly faster than the CPA path.
Exam Difficulty Analysis
Why the EA Exam Is More Accessible
When you consider the Enrolled Agent exam pass rate, you can see that your chances for exam success are good. Several factors contribute to the EA exam being more manageable:
- Focused Content: Tax-only vs. broad accounting topics
- Question Format: With only multiple-choice questions, candidates avoid open-ended and task-based simulation questions
- Higher Pass Rates: It's about 20% higher than the CPA Exam pass rate
- Flexible Scheduling: You may take each part of the examination at your convenience and in any order
CPA Exam Challenges
The CPA exam is generally considered more difficult due to:
- Broader subject matter covering all aspects of accounting
- Complex task-based simulations
- Written communication requirements
- Lower overall pass rates
- Stricter time limits and testing windows
Career Flexibility and Specialization
Enrolled Agent Specialization Areas
EAs can develop expertise in numerous tax specializations:
- Individual tax planning and preparation
- Small business taxation
- Estate and gift tax planning
- International taxation
- Tax controversy and representation
- Non-profit organization taxation
- Multi-state taxation issues
CPA Career Diversity
CPAs enjoy broader career options:
- Public accounting (audit, tax, consulting)
- Corporate accounting and finance
- Government accounting
- Non-profit sector
- Financial planning
- Business consulting
- Forensic accounting
Education Requirements
EA: No Degree Required
One of the biggest advantages of the EA path: you can become an EA without a college degree. The only requirements are:
- Obtain a PTIN
- Pass the three-part SEE exam
- Pass background and suitability checks
CPA: Extensive Education Requirements
CPA candidates must typically complete:
- Bachelor's degree (minimum)
- 150 credit hours of education
- Specific accounting and business courses
- Some states require a master's degree or additional coursework
Continuing Education Requirements
EA Continuing Education
Complete 72 hours of continuing education courses every three years - that's 24 hours annually. The education must be tax-related and from approved providers.
CPA Continuing Education
Requirements vary by state but typically require:
- 40 hours annually (120 hours over 3 years)
- Broader range of topics beyond just taxation
- Ethics requirements
- More stringent reporting and compliance
Professional Recognition and Prestige
EA Professional Standing
- Enrolled agent status is the highest credential the IRS awards
- Recognized by the IRS as tax experts
- Growing recognition in the business community
- Professional associations like NAEA provide networking and resources
CPA Professional Standing
- Widely recognized business credential
- Required for certain positions (CFO, controller, etc.)
- Higher general business recognition
- Extensive professional network and associations
Which Path Should You Choose?
Choose Enrolled Agent If You:
- Want to focus exclusively on taxation
- Prefer faster entry into the profession
- Don't have (or want to pursue) extensive college education
- Want maximum flexibility in tax practice
- Prefer lower barriers to entry
- Are primarily interested in tax representation and planning
Choose CPA If You:
- Want broader career options beyond taxation
- Are willing to invest more time and money upfront
- Already have or are willing to pursue 150+ credit hours of education
- Want the highest possible earning potential
- Are interested in auditing and financial statement work
- Prefer the prestige of a widely recognized credential
The Bottom Line: ROI Analysis
Enrolled Agent ROI
Investment: $2,000 - $4,000 (exam fees + study materials) Time to Practice: 6-12 months Break-even: Typically within first year of practice Long-term Earning Potential: $60,000 - $150,000+
CPA ROI
Investment: $50,000 - $150,000+ (education + exam + materials) Time to Practice: 5-7 years Break-even: 2-5 years after completing requirements Long-term Earning Potential: $95,000 - $300,000+
Conclusion
Both Enrolled Agent and CPA credentials offer excellent career opportunities, but they serve different professional goals:
Choose EA for: Fast entry, tax specialization, lower investment, maximum flexibility Choose CPA for: Broader opportunities, higher prestige, maximum earning potential, business consulting
For many professionals, starting with EA and later pursuing CPA can be an excellent strategy - the EA credential gets you working in tax immediately while you work toward the more comprehensive CPA credential.
The demand for EAs is high and the future is bright, potentially lucrative, and highly flexible, making either path a solid career choice for motivated tax professionals.
The key is choosing the path that aligns with your career timeline, educational background, and long-term professional goals.
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Questions? Answers.
To become an Enrolled Agent, you must:
- Pass the Special Enrollment Examination (SEE), which is a three-part exam covering:
- Alternatively, if you have experience working for the IRS (at least five years in a relevant tax position), you may qualify without the exam.
- Apply for enrollment by submitting Form 23, “Application for Enrollment to Practice Before the IRS,” and undergo a background check to ensure you comply with tax laws.
The SEE is a three-part exam that tests your knowledge of tax laws and your ability to represent taxpayers before the IRS. Each part of the exam focuses on different aspects of U.S. tax law:
- Part 1: Individual Taxation
- Part 2: Business Taxation
- Part 3: Representation, Practices, and Procedures
You must pass all three parts within a two-year period. The exam is administered by Prometric and is available year-round.
To renew your EA status, you need to:
- Complete Form 8554, “Application for Renewal of Enrollment to Practice Before the IRS,” and submit it before the expiration of your current enrollment cycle.
- Confirm you have met your CPE requirements for the three-year period.
- Pay the renewal fee (currently $140 as of 2024).
Your renewal period is based on the last digit of your Social Security Number:
- 0, 1, 2, 3: Renew by January 31 of years divisible by 3 (e.g., 2026, 2029).
- 4, 5, 6: Renew by January 31 of the year following those divisible by 3.
- 7, 8, 9: Renew by January 31 two years after the year divisible by 3.
Yes, an EA can lose their status for various reasons, including:
- Failure to meet CPE requirements.
- Failure to renew your enrollment by submitting Form 8554.
- Unethical behavior or violations of IRS regulations (e.g., tax fraud, negligence).
If you lose your status, you will need to reapply and, in some cases, retake the SEE to regain your credentials.
It’s important to track your CPE hours to ensure you meet the requirements. Many IRS-approved providersautomatically track your hours and issue certificates for each course. You should:
- Keep a record of completion certificates from each CPE course.
- Use a spreadsheet or online tracking tool to log your hours and ensure you meet the yearly 16-hour minimum.
Some CPE providers offer dashboards that allow you to track your completed courses and hours in real time.
While both EAs and CPAs can represent clients before the IRS, there are key differences:
- EAs specialize in tax and have unlimited practice rights to represent taxpayers before the IRS in tax matters.
- CPAs can offer a broader range of services, including auditing, accounting, and financial planning. However, their ability to represent clients before the IRS in tax matters is typically limited to those for whom they have prepared tax returns or provided other services.
EAs are generally seen as tax experts, while CPAs have a more generalized accounting background.
Form 23 is the “Application for Enrollment to Practice Before the IRS.” You file this form:
- After you pass all three parts of the SEE, or
- If you qualify based on prior IRS work experience (at least five years in a relevant position).
Filing Form 23 is the final step in becoming an Enrolled Agent. You must also pass a background check and pay the initial enrollment fee.
- After passing the SEE, you must submit Form 23.
- The IRS will conduct a background check to ensure you have complied with U.S. tax laws.
- The approval process typically takes 60-90 days, depending on the completeness of your application and the IRS's review workload.
We have addressed most of the EA questions in our blogs. Refer to these blogs
Here are all the relevant resources you can use to pass the exams
- Enrolled Agent CPE Requirements: Complete Guide for EAs
- Enrolled agent diagnostic report: How to use it
- Enrolled Agent Exam Centers in India: Complete Guide
- Enrolled Agent Exam Cost: A Complete Breakdown
- Enrolled agent exam retakes: Study strategies
- Enrolled Agent Exam Sample Questions: Part 1 Individuals
- Enrolled Agent Exam Scores: Everything You Need to Know
- Enrolled agent exam time management
- Enrolled Agent Exam: Your Complete Guide to Success
- Enrolled Agent Renewal: Complete Guide to Renew Your EA Status
- Enrolled Agent Salary in India: A Complete Overview
- Enrolled Agent Study Plan Strategies
- Enrolled Agent Syllabus: Complete Breakdown for 2024
- Enrolled agent test preparation
- Enrolled Agent: Your Guide to Becoming an EA
- How to Fill Form 8554 for Enrolled Agent Renewal
- How to get a PTIN: Step by Step guide
- PTIN Renewal Deadlines: What Happens If You Miss the Deadline?
- Enrolled agent course
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