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 Expert CPA = Broad Accounting License
Both can prepare taxes. Choose based on scope: tax representation/planning (EA) vs. GAAP/assurance plus tax (CPA).
Enrolled Agent and CPA definitions
- Enrolled Agent (EA): Federally authorized by the IRS. Focus on tax planning, preparation, and representation (audits, collections, appeals) in all states.
- Certified Public Accountant (CPA): Licensed by a state board. Focus on financial statements, assurance (where allowed), tax, and advisory. Practice rules vary by state.
- Tax Attorney (when needed): Legal strategy, privilege, and litigation (e.g., tax court, criminal investigations, complex settlements).
Licensing, Practice Rights & Scope
Enrolled Agent (EA)
- Federal credential; represent clients before the IRS nationwide.
- Deep tax specialization—entity choice, S-Corp comp, estimates, notices, audits.
- Tax-centric continuing education and ethics requirements.
Certified Public Accountant (CPA)
- State license; broader scope: accounting/GAAP, assurance (per state), tax, advisory.
- Financial reporting and assurance are different needs. A compilation provides no assurance; a review provides limited assurance; an audit provides reasonable, rather than absolute, assurance. Confirm the intended recipient’s required report and applicable licensing requirements before selecting a provider.
- CPE across accounting, auditing, ethics, and tax topics.
Who Should You Hire—and When?
- Hire an EA when you need tax: IRS representation, multi-state mapping, quarterly estimates, entity strategy, notice resolution.
- Hire a CPA when you need financial reporting: GAAP statements, assurance services for lenders/investors—plus tax and advisory.
- Engage a Tax Attorney for privileged legal matters or litigation.
Enrolled Agent and CPA decision checklist
- Credentials in good standing (EA/CPA) and current CPE.
- Written scope & SLAs: deliverables, deadlines, and response times.
- Security posture: secure portal, MFA, e-sign, retention policies.
- Industry experience: trades, restaurants, e-commerce, real estate, services.
- Planning cadence: monthly close + quarterly reviews, not just year-end.
How We Support You (Month–Quarter–Year)
Monthly
- Bookkeeping & 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; S-Corp reasonable comp review.
- KPI dashboard: margins, runway/DSCR, DSO/DPO/DIO; pricing & budget updates.
Annually
- 1099 filings; fixed-asset rollforward & depreciation; business & owner returns.
- Year-end strategy and next-year roadmap.
Rule of Thumb: Match the engagement to your tax, financial-reporting and assurance needs. GAAP is a reporting framework; it does not establish whether statements have been compiled, reviewed or audited. Confirm the intended recipient’s required report and applicable licensing requirements before selecting a provider.
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 & missing support → missed deductions and audit exposure.
- Multi-state sales/use tax for e-commerce/services → surprise liabilities.
What You’ll Get When You Work With Us
- Clean monthly close with audit-ready statements and workpapers.
- 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 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; licensure is at the state level, but representation rights are recognized federally.
Official references: IRS Enrolled Agent information and IRS guidance on tax preparer credentials and qualifications. These explain federal representation rights; verify current credentials and agree on the scope of your engagement.
Which is better for tax planning—EA or CPA?
Both can be excellent. EAs specialize in tax by design; many CPAs also have deep tax expertise. Choose based on their proven 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: they handle day-to-day coding; we handle close oversight, tax, and planning.
Do you offer bookkeeping and tax under one roof?
Yes—monthly bookkeeping, quarterly planning, and annual returns—so your numbers stay clean and tax-ready year-round.
Want a quick recommendation 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.
For related support, review our IRS representation services and business tax preparation services, then contact our team to discuss your needs and the proposed engagement.