What's the difference between a CPA, an enrolled agent and a tax preparer?
Short answer
A CPA is an accountant licensed by a state, an enrolled agent is a tax specialist licensed by the IRS, and a tax preparer may have neither license. The difference matters most if you ever need someone to represent you before the IRS.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
| CPA | Enrolled agent | Tax preparer | |
|---|---|---|---|
| Licensed by | A state board | The IRS | Not required |
| Focus | Accounting broadly, some specialize in tax | Tax only | Tax returns |
| Can represent you before the IRS on any matter | Yes | Yes | Generally no |
Every paid preparer needs an IRS preparer ID. Beyond that, training varies a lot.
What matters as much as the license: whether they understand creator income. A license doesn't guarantee someone knows how to handle brand deals, AdSense, TikTok Shop or an S-Corp for a creator.
Questions to ask any tax pro:
- Who will actually prepare and review my return?
- How many creators do you work with?
- Who represents me if the IRS sends a letter?
- Do you only file, or do you plan during the year?
DeCypher has CPAs on the team, and we work only with creators.