Yes, but you have to take another test on Court proc, and, Yes- it is a federal/IRS designation. Look on the back of your IRS POA form. You don’t do taxes much, do you? No insult intended, but a lot of CPA’s don’t, they do accounting. Ask one of your tax specialists about EA’s, or “enrolled to practice before the IRS”. When I was a Reviewer, I was on top of 1040 tax law as anyone in the company, ans was usually sent in to “deal” with District Counsel & Appeals.
Actually, I do alot of corporate returns and a few individual returns for people I know. I don’t work for a CPA firm, I am in private industry. So, I am relatively certain I do significantly less tax returns than you.
But, with the limited number of tax returns I have done, I swear I think every bump in the road that could show up has done so at one time or another. Including a client who died in 1998, giving me a quick lesson in Estates Taxes, Estate Tax Returns, and Trusts.
Gone are the days when you could do a 1040-EZ for $25. People seem so surprised when I quote them a price for a tax return around $100. They tell me how much Sears charges smile. But honestly, for a ‘simple’ return, if there is such an animal, TurboTax will do most things for them. It is just a matter of alot of time to input data. But for the $100, you get someone who can advise you on future years, how to get more deductions, shelter income, etc. Probably not for everyone. I am sure you do the same, regarding advise.
I know you didn’t intend it as a dig, so I won’t take it as such, but you seem to have a superiority complex to CPAs. I don’t know how the market is in other states, but in Maryland, most CPAs work for public firms that conduct audits or prepare taxes. In public firms, a CPA specializes in one field. A CPA firm can provide much better tax guidance than most tax experts, especially the Big 5, because they have a host of tax experts, who I am sure are enrolled agents as well, and have specific experience in every industry. They have a case history across the country and internationally. They have people that do nothing but read code and interpretations all year long, not practicing at all. I know this because we deal with two of the Big 5 and a small CPA firm. They help to shape the tax law through interpretations brought on by IRS cases.
I am one of the rare few that chose not to pursue public accounting and went right into industry and am now VP of my company. I think you have and give a misperception of what CPAs are and what they do.
Jag: Oh, no, CPA’s are “superior” to EA’s, as they can do a lot more stuff than an EA can do. EA’s are specialists in taxes, and usually income taxes. Thus, they know more than the AVERAGE CPA about taxes, as so many CPAs don’t do much tax work*. At the top of the tax field, with tax specialists, all 3 are about equal (I include tax attorneys), with each having their “niche” of specialzation. Sure, a CPA, who is a specialist in a particular section of the tax code, would be more of an expert than an EA, as EA’s rarely specialize beyond “1040’s”, altho “audit representation” is one of the few areas EA’s specialize in.
And, yes indeedy, a “CPA firm”, with a cast of Tax Attorneys, CPA’s, and yes- EA’s, would have far more tax knowledge than either of us put together. The BIG 5, are certainly that. I don’t do taxes much anymore, as i work in a slightly related feild for the US Govt. But I still attend CPE, and do a few returns for free, for a few of my freinds.
*Just like the average CPA knows more about taxes than the average Attorney, even tho the Attorney holds a “higher” degree/license.