An Enrolled Agent is federally credentialed for IRS representation. A U.S. CPA holds a state-issued license. Check the provider’s current credentials, experience, engagement scope, and authorization for your matter. Pedro Henriquez is a U.S. Enrolled Agent and holds a Dominican Republic CPA credential; the Dominican credential is not a U.S. CPA license. Compare relevant experience, the written engagement and fees when selecting a provider.
For the international context, read our U.S.–Dominican CPA comparison. It explains shared accounting education, Pedro’s MBA and Dominican CPA background, Enrolled Agent representation rights, and U.S. GAAP versus Dominican IFRS/NIIF reporting standards.
Table of Contents
EA = Federal Tax Specialist CPA = Broad Accounting License
Both EAs and appropriately licensed U.S. CPAs have unlimited representation rights before the IRS, subject to practice rules and taxpayer authorization. CPA licensing is administered by U.S. state or territorial boards; the license location does not restrict IRS representation to that state. See IRS representation-rights guidance.
Quick Definitions
- Enrolled Agent (EA): Federally authorized by the IRS. Focus: tax preparation, planning, and representation (audits, collections, appeals) for individuals and businesses nationwide.
- Certified Public Accountant (CPA): Licensed by a state board of accountancy. Services can include accounting, financial reporting, assurance, tax and advisory, subject to applicable licensing and engagement requirements. Compilation, review and audit are distinct engagements with different assurance levels.
- Tax Attorney (when needed): Licensed attorney with specialization in tax law; used for complex disputes, court petitions, criminal tax investigations, or advanced legal opinions.
Licensing, Practice Rights & Scope
Enrolled Agent (EA)
- Federal credential—practice before the IRS in every state.
- Deep tax specialization (prep, planning, audits, collections, appeals).
- Continuing education (CPE) focused on taxation and ethics.
Certified Public Accountant (CPA)
- State license—broader scope: financial statements, assurance, tax, and advisory.
- Compilation, review and audit are distinct engagements. A compilation provides no assurance; a review provides limited assurance; an audit provides reasonable assurance. Reporting under GAAP does not itself mean statements have been reviewed or audited. Confirm the intended recipient’s requirements and the provider’s applicable license and engagement scope.
- CPE across accounting, auditing, ethics, and tax topics.
Who Should You Hire—and When?
- Hire an EA when your priority is tax: entity choice/S-Corp modeling, quarterly estimates, multi-state sales/use tax considerations, IRS notices, audits, collections, or appeals.
- Hire a CPA when you need financial reporting: GAAP financials, audits/reviews/compilations, lender or investor requirements—plus tax and advisory.
- Engage a Tax Attorney for high-risk legal matters: tax court filings, criminal investigations, complex settlements, privilege needs, or intricate transactions needing legal opinions.
How We Support Your Business (Month–Quarter–Year)
Monthly
- Bookkeeping and reconciliations; close with P&L, Balance Sheet, Cash Flow.
- AR/AP cadence; 13-week cash forecast; documentation discipline (receipts, W-9s).
Quarterly
- Tax projections & vouchers; payroll/sales tax checkups; entity/comp reviews (e.g., S-Corp reasonable comp).
- KPI dashboard: margins, runway/DSCR, DSO/DPO/DIO; pricing/budget updates.
Annually
- 1099 filings; fixed-asset rollforward & depreciation; business & owner returns.
- Year-end planning and next-year roadmap.
Selection Checklist (EA or CPA)
- Credentials in good standing (EA/CPA) and current CPE.
- Scope & SLAs in writing: deliverables, deadlines, response times.
- Security posture: secure portal, MFA, e-signature, retention policies, least-privilege access.
- Industry experience: construction, e-commerce, real estate, restaurants, professional services, etc.
- Planning cadence: monthly close + quarterly reviews, not just year-end tax prep.
Common (Costly) Situations We Resolve
- Late/incorrect quarterly estimates → penalties and interest.
- Wrong entity or late S-Corp election → excess self-employment tax.
- Unreconciled accounts and missing support → audit exposure and missed deductions.
- Multi-state sales/use tax for e-commerce and services → surprise liabilities.
Rule of Thumb: Compilation, review and audit are distinct engagements. A compilation provides no assurance; a review provides limited assurance; an audit provides reasonable assurance. Reporting under GAAP does not itself mean statements have been reviewed or audited. Confirm the intended recipient’s requirements and the provider’s applicable license and engagement scope.
What You’ll Get When You Work With Us
- Clean monthly books and a reliable close checklist.
- Quarterly tax projections with vouchers and due dates.
- IRS/state notice handling and representation by an Enrolled Agent.
- Owner dashboard: margins, cash runway, and tax-ready KPIs.
- Secure portal, e-sign, and clear, documented processes.
FAQs
Can both EAs and CPAs represent me before the IRS?
Yes. EAs have nationwide practice rights before the IRS. CPAs can also represent clients before the IRS; their licensure is at the state level, but representation rights are recognized federally.
Who is better for tax planning—EA or CPA?
Both can be excellent at tax. EAs are tax-specialized by design; many CPAs also have deep tax expertise. Choose based on their actual planning process, responsiveness, and results with businesses like yours.
When do I need a tax attorney instead?
Consult an appropriately qualified attorney when a matter involves legal advice, criminal exposure or litigation. IRS practice rights do not by themselves authorize practice before the U.S. Tax Court, which has separate admission rules. Any legal referral or engagement should be agreed separately.
Can I keep my bookkeeper and add your Enrolled Agent-led tax team?
Absolutely. We coordinate with in-house or third-party bookkeepers. We handle close oversight, tax, and planning; they handle day-to-day coding.
Do you offer both bookkeeping and tax?
Yes—monthly bookkeeping, quarterly planning, and annual returns—so your numbers stay clean and tax-ready all year.
Want a simple answer for your situation?
Share your goals, entity and reporting requirements so we can define an EA-led tax, bookkeeping or advisory engagement. U.S. CPA assurance services require an appropriately licensed provider and a separate engagement. Schedule a consultation.
Review our IRS representation, bookkeeping and business tax preparation services. Contact our team to discuss which support fits your circumstances and to confirm the scope and fees.