CPA, EA, preparer or bookkeeper: who do you need?
Six kinds of people do tax and accounting work, and they are not interchangeable. Here is what each one is licensed to do, who can stand between you and the IRS, and how to check a credential in two minutes.
Who can do what
The short version. Details for each credential follow.
| What they can do | CPA | EA | Attorney | Preparer | Bookkeeper | Planner |
|---|---|---|---|---|---|---|
| Prepare your federal return for pay | Yes | Yes | Yes | Yes | No* | No* |
| Represent you in an IRS audit | Yes | Yes | Yes | Limited | No | No |
| Handle collections and appeals | Yes | Yes | Yes | No | No | No |
| Take a case to U.S. Tax Court | No† | No† | Yes | No | No | No |
| Sign audited or reviewed financials | Yes | No | No | No | No | No |
| Keep your monthly books | Yes | Often | No | Some | Yes | No |
| Give investment advice | Some | No | No | No | No | Yes |
| Attorney-client privilege | Limited | Limited | Yes | No | No | No |
- * Unless they also hold a PTIN and prepare returns, which many bookkeepers and some planners do.
- † Non-attorneys can practice in Tax Court only after passing the court's own exam, which few do.
- Limited privilege: CPAs and EAs have a narrow federal privilege for non-criminal tax advice. It does not cover criminal matters or return preparation.
Certified Public Accountant (CPA)
Licensed by a state board of accountancy after passing the four-part Uniform CPA Exam and meeting education and experience rules. CPAs keep their license with continuing education every year. Many do tax work; others focus on audits, financial statements or advisory work.
- IRS representation
- Unlimited. A CPA can represent you before the IRS on any tax matter: audits, collections and appeals.
- Worth knowing
- Only a licensed CPA firm can sign an audit or review report on financial statements.
- What it costs
- Usually the highest hourly rates of the group. Firms often quote a flat fee per return once they see your documents.
A good fit for
- Business owners who need tax work plus books, payroll or financial statements
- Anyone a bank, investor or grant maker has asked for reviewed or audited financials
- Complicated returns: rentals, K-1s, multi-state income, a business sale
Ask before you hire
- Is your license active in this state, and who in the firm will work on my file?
- How many returns like mine (business type, states, forms) do you do each year?
- Do you represent clients in audits yourself, and is that billed separately?
Top-rated CPA firms in the directory
Paramount Tax & Accounting CPAs of Lehi★★★★★ 5.0 (452)CPA firm · Lehi, UT
Bob Browder, MBA, CPA★★★★★ 5.0 (315)CPA firm · Bartlett, TN
x247Services | Trusted CPA & Tax Experts: Reliable Accounting and Financial Solutions in San Antonio, San Marcos, Texas★★★★★ 5.0 (264)CPA firm · Schertz, TXIn our directory: 2,783 CPA firms listed as “CPA firm”.
Enrolled Agent (EA)
Federally licensed by the IRS itself, either by passing the three-part Special Enrollment Examination or through years of experience as an IRS employee. EAs specialize in tax only and must complete 72 hours of continuing education every three years.
Google has no separate 'enrolled agent' category, so EAs in our directory are usually listed as tax preparers or tax consultants. Look for 'EA' in the firm's name or website, then verify it.
- IRS representation
- Unlimited. Like CPAs and attorneys, an EA can represent you before the IRS on any tax matter, in any state.
- Worth knowing
- EAs are the only tax pros whose license comes from the IRS rather than a state.
- How to verify
- IRS Directory of Federal Tax Return Preparers
- What it costs
- Often less than a CPA firm for the same return. Representation is usually billed hourly or as a flat project fee.
A good fit for
- People who owe back taxes, got an IRS letter or are being audited
- Self-employed workers, landlords and small businesses that need solid tax prep
- Anyone who wants a tax specialist without CPA-firm rates
Ask before you hire
- Can you represent me if this return is audited, and what would that cost?
- Do you prepare state returns too, including part-year or multi-state?
- How do you stay current (continuing education, software, IRS updates)?
In our directory: 9,139 tax preparers listed as “Tax preparer”.
Tax attorney
A lawyer licensed by a state bar, often with a tax LLM degree. Tax attorneys handle legal disputes, tax court, estate and trust planning, and cases where criminal exposure is possible. Many don't prepare routine returns at all.
- IRS representation
- Unlimited before the IRS, and they can take your case to U.S. Tax Court and other courts.
- Worth knowing
- Your conversations are protected by attorney-client privilege, which matters if fraud or crime could be alleged.
- How to verify
- your state bar's lawyer lookup
- What it costs
- The most expensive option per hour. Worth it when the legal risk or the dollars involved are large.
A good fit for
- Large tax debts, liens, levies or a disputed audit headed to appeals or court
- Unfiled returns or foreign accounts where penalties could be severe
- Estate plans, trusts and business deals with big tax consequences
Ask before you hire
- How many cases like mine have you handled, and how did they end?
- Will you work with my CPA or EA, or bring in your own?
- Is the fee hourly, flat or a retainer, and what does the retainer cover?
Top-rated tax & estate attorneys in the directory
Northwest Strategy and Planning, PLLC★★★★★ 5.0 (166)Tax attorney · Seattle, WA
Precision Tax Relief★★★★★ 4.9 (286)Tax attorney · Coeur d'Alene, ID
IRSProb.com★★★★★ 4.9 (175)Tax attorney · Dallas, TXIn our directory: 100 tax & estate attorneys listed as “Tax attorney”.
Paid tax preparer (PTIN holder)
Anyone who prepares federal returns for pay must have a Preparer Tax Identification Number (PTIN) from the IRS and sign the returns they prepare. Beyond that there is no federal licensing exam, so training and quality vary a lot, from seasonal storefronts to experienced year-round offices.
- IRS representation
- Limited. A preparer without a credential can't represent you before the IRS. Those who finish the IRS's voluntary Annual Filing Season Program can talk to IRS examiners and customer service about returns they prepared and signed, but not handle appeals or collections.
- Worth knowing
- A few states, including California, New York, Oregon and Maryland, add their own registration or licensing rules.
- How to verify
- IRS Directory of Federal Tax Return Preparers (lists those with an Annual Filing Season Program record)
- What it costs
- Usually the cheapest paid option. Chains and storefronts price per form, so extra schedules add up.
A good fit for
- W-2 employees, retirees and families with fairly simple returns
- People who want a person, not software, but don't need year-round help
- Quick turnaround during filing season
Ask before you hire
- What is your PTIN, and will you sign my return with it?
- Are you open after April if the IRS sends me a letter?
- Is your fee per form, and what's the total for my return before you start?
In our directory: 9,139 tax preparers listed as “Tax preparer”.
Bookkeeper
Records your business's day-to-day transactions, reconciles bank and card accounts, and produces monthly reports. No license is required; good bookkeepers often hold a Certified Bookkeeper credential or software certifications such as QuickBooks ProAdvisor.
- IRS representation
- None before the IRS, unless the bookkeeper is also an EA or CPA.
- Worth knowing
- Clean monthly books are what make tax season fast and cheap for your CPA or EA.
- How to verify
- references and software certifications; ask for a sample monthly report
- What it costs
- Commonly a monthly fee based on transaction volume and number of accounts; catch-up work is quoted separately.
A good fit for
- Small businesses with steady transactions and no in-house accountant
- Owners who are months behind and need catch-up bookkeeping
- Businesses that need payroll, invoicing and bill pay handled
Ask before you hire
- Which software do you work in, and who owns the file if we part ways?
- What do I get each month, and by what date?
- Who do you hand off to at tax time, and do you work with my CPA already?
Top-rated bookkeepers in the directory
RC Tax Service★★★★★ 5.0 (359)Bookkeeper · Haines City, FL
Harrisburg Bookkeeping★★★★★ 5.0 (198)Bookkeeper · Camp Hill, PA
Real Accounting - Real Solutions★★★★★ 5.0 (132)Bookkeeper · Vancouver, WAIn our directory: 875 bookkeepers listed as “Bookkeeper”.
Financial planner or advisor
Helps with investments, retirement, insurance and long-term planning. 'Financial planner' and 'advisor' are not protected titles. The CFP® mark requires an exam, experience and a fiduciary duty when giving financial advice; registered investment advisers answer to the SEC or the state.
- IRS representation
- None before the IRS unless they are also a CPA, EA or attorney.
- Worth knowing
- Ask how they are paid: flat or hourly fees, a percentage of assets, or commissions on products sold.
- What it costs
- Varies widely: hourly or flat planning fees, an annual percentage of invested assets, or commissions.
A good fit for
- Retirement planning, Roth conversions and required minimum distributions
- Investing a windfall, an inheritance or the proceeds of a business sale
- Coordinating tax-aware investing with your CPA or EA
Ask before you hire
- Are you a fiduciary at all times when you advise me?
- Exactly how are you paid, and what will I pay in total each year?
- Do you prepare tax returns, or will you work alongside my tax preparer?
Top-rated financial advisors in the directory
USA Tax Gurus LLC★★★★★ 5.0 (146)Financial advisor · Issaquah, WA
Finity Group★★★★★ 5.0 (81)Financial advisor · Portland, OR
V&D Consulting Firm★★★★★ 4.9 (182)Financial advisor · Fort Worth, TXIn our directory: 360 financial advisors listed as “Financial advisor”.
Look it up before you hire
- CPAs: CPAverify.org or your state board of accountancy.
- Enrolled agents and credentialed preparers: IRS Directory of Federal Tax Return Preparers.
- Attorneys: your state bar's lawyer lookup.
- Financial planners: CFP Board, FINRA BrokerCheck and the SEC adviser search.
- Problems with a preparer: report them to the IRS with Form 14157.
Income around $67,000 or less? IRS-certified volunteers may prepare your return for free through VITA and TCE (the limit changes each year), and IRS Free File offers free software.