What is the difference between a CPA and an enrolled agent?

Both can prepare taxes and represent you before the IRS, but their credentials differ. A CPA (Certified Public Accountant) is licensed by a state and trained broadly in accounting, auditing, and tax, which makes them a strong choice for complex finances or business needs. An enrolled agent (EA) is licensed federally by the IRS and specializes specifically in taxation and representation. For straightforward tax help and audit representation, an EA is often more affordable; for wider financial and business services, a CPA may fit better.