1. What is the advantage of being an Enrolled Agent and a CPA , compare to just being a CPA?

2. What can an Enrolled Agent do that a CPA cannot do or vice versa?

md-futcpa wrote: taxes

CPAs also prepare tax returns. When I think about taxes, CPAs comes to mind.

Explain a little more regarding Enrolled Agent and taxes.

Enrolled Agents (EA) are tax professionals licensed by the U.S. Department of Treasury to represent taxpayers before the IRS.  EAs, like attorneys and CPAs, are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before. You can become an EA by passing an exam given by the IRS, or by having at least 5 years of qualifying experience working for the IRS.  The EA exam covers tax only, like the tax part of REG but a lot more comprehensive.  They have changed the exam around (computerized, raised fees, given more often), but when I took the EA exam, it was a 4 part, 2 day exam given once a year.  Unlike the CPA exam, anyone can apply to take the EA exam.  There are no special education requirements.  I think the most difficult part of becoming a CPA are the steep education requirements.  As much as I struggle with CPA exam study during tax season, I still say that going to school and having to deal with voluminous amounts of homework during tax season was a lot worse.

Legally, there is nothing that an EA can do that a CPA can't.  However, the main benefit to being an EA versus a CPA, besides not having to fulfill the education requirements, is in representing out of state clients regarding state matters.  Because EAs are licensed by the federal government, while CPAs are licensed by their respective states, EAs generally don't face the issues when practicing out of state that CPAs sometimes do.

Also, all EAs specialize in tax, but not all CPAs do.  As someone who has passed the EA exam as well as REG, I can say that the requirements for tax knowledge are much more rigorous for the EA than for the CPA exam.

Some EAs say that EAs tend to have an easier time dealing with the IRS than CPAs do.  See this well written piece on why one would want to become an EA:
http://answers.yahoo.com/question/index;_ylt=ApCElJqRyKwwqyT ZcCZJOtbsy6IX;_ylv=3?qid=20090722125651AA2EroF&show=7
I have not done that much representation work, but on the few occasions when I did represent clients before the IRS as an EA, I must say that things went relatively smoothly, and the revenue agents were cooperative and courteous.

Unfortunately, the EA credential is not well known, among the general public or among professionals, and many CPA firms think that if you are not a CPA, you are not good at tax.  I have had a very difficult time in the job market without a CPA license.

See the IRS web site for more information on enrolled agents:
http://www.irs.gov/taxpros/agents/index.html

kj_nyc.

I heard the name "Enrolled Agent" tossed around about a year ago, but I wasn't aware of the comprehensive body of tax work these guys get into.

Incidentally, if you have the EA and CPA credentials, what what would a Masters in Taxation add to your knowledge? Would you be wasting money going back to school?