CPA vs enrolled agent vs tax preparer
Kinds of tax and accounting help in Illinois, what each may do, and how to check them.
| Licensed CPA | Registered CPA | Enrolled agent (EA) | Tax preparer | |
|---|---|---|---|---|
| Credential from | IDFPR (state license) | IDFPR (state registration, closed to new applicants since June 30, 2012) | IRS (federal) | IRS Preparer Tax Identification Number (PTIN) |
| Can prepare tax returns | Yes | Yes | Yes | Yes |
| Represent you before the IRS | Yes, unlimited | Not by virtue of the registration, according to IRS Chief Counsel | Yes, unlimited | Limited |
| Sign audit reports on financial statements | Yes (with a licensed firm where required) | No | No | No |
| Continuing education | 120 hours every three years | None required | IRS requirement | Varies |
| How to verify | Check a CPA or IDFPR lookup | Check a CPA or IDFPR lookup | IRS directory of preparers | IRS directory of preparers (credentialed preparers) |
Attorneys can also represent taxpayers before the IRS. Under the Illinois Public Accounting Act (225 ILCS 450/8.05), tax preparation, bookkeeping and consulting are not restricted to CPAs; signing reports that express assurance on financial statements is limited to licensed CPAs.
Sources: 225 ILCS 450/8.05 · Illinois CPA Society: licensing and practice requirements · IRS Chief Counsel memo on Illinois registered CPAs