To sum it up simply, "Taxes are laws, and accounting is numbers," Pinck says. The price for preparing a return may even be comparable between a CPA and a EA.
So how do you choose which type of professional is right for you? It's not always black and white and requires an evaluation by each individual, but here are some general guidelines from the experts:
Choose an EA:
When you have out-of-state returns. Enrolled agents are the only taxpayer representatives who receive their unlimited right to practice from the federal government (CPAs and attorneys are licensed by the states). That means if you need to file in more than one state and eventually need representation before that state in an audit or resolution case, the same EA can do it, Pinck says.
When you need help resolving an IRS dispute or expect to owe. People who don't have the resources to pursue a taxation attorney often hire EAs instead for civil resolution cases, according to David Miles, an enrolled agent with 20/20 Tax Resolutionin Broomfield, Co. Not only do EAs rates tend to be more affordable, they can their tax law expertise to represent clients in tax proceedings, audit hearings and appeals.
Read: Why the IRS Picked You to Audit
EAs help ensure clients are treated appropriately by the IRS, work out payment plans on the best possible terms, and ensure the IRS follows laws that protect taxpayers, Miles says.