Enrolled Agent vs. CPA: Which Do I Need for Expat Taxes?
Filing U.S. taxes from abroad is complicated, and if you are feeling overwhelmed, you are not alone. Studies show that over 37% of Americans hire a professional to handle their taxes.
If you have decided to get help, you might be stuck on the next question: “Do I need a CPA or an Enrolled Agent?”
It is a common source of confusion, but here is the good news: For most expats, both are excellent choices. Both credentials authorize the professional to represent you before the IRS, and both require rigorous testing to obtain.
At Greenback, we have a team that includes both Enrolled Agents (EAs) and Certified Public Accountants (CPAs). We match you with the accountant best suited for your specific country and financial situation, so you never have to worry about making the “wrong” choice.
CPA or Enrolled Agent? You Don’t Have to Decide Alone.
Here is a breakdown of what each professional does and how they can help you get peace of mind this tax season.
What Is an Enrolled Agent (EA)?
An Enrolled Agent (EA) is a tax advisor who is federally authorized by the U.S. Department of the Treasury. In fact, it is the highest credential the IRS awards.
Because their licenses come directly from the federal government, EAs are uniquely positioned to assist expatriates. They are licensed to practice in all 50 states and at U.S. consulates abroad, meaning their expertise is truly portable.
- They are Specialists: EAs focus exclusively on tax law. They do not typically handle general business accounting or financial statement auditing.
- They Have “Unlimited Representation Rights”: Just like a CPA or attorney, an EA can speak directly to the IRS on your behalf regarding audits, payment/collection issues, and appeals.
- How They Qualify: To become an EA, a candidate must pass a comprehensive three-part exam (The Special Enrollment Examination) covering individual and business tax returns, or have significant past experience working directly for the IRS.
Because EAs focus 100% on tax compliance, they are often the most efficient choice for expats with straightforward but “messy” situations, like catching up on multiple years of unfiled returns through Streamlined Filing.
What Is a Certified Public Accountant (CPA)?
A Certified Public Accountant (CPA) is a licensed accounting professional who has met specific state education and experience requirements. While EAs are tax specialists, CPAs are financial generalists.
- They are Broad Experts: CPAs are trained in a wide range of financial areas, including auditing, business accounting, corporate finance, and taxation.
- They are State-Licensed: Unlike EAs, who hold a federal license, CPAs are licensed by individual state boards. However, most CPAs can practice across state lines (and internationally for U.S. taxes) due to reciprocity laws.
- How They Qualify: CPAs must generally pass a four-part exam and have 150 credit hours of education (equivalent to a Master’s degree).
As of 2024, the CPA exam has evolved. Newer CPAs now pass three “Core” sections (Auditing, Financial Accounting, and Tax) and then choose a specialized “Discipline,” such as Tax Compliance and Planning. This means many modern CPAs are just as specialized in tax nuances as their EA counterparts.
The Main Differences at a Glance
When you are living abroad, the functional difference between the two is often smaller than you think. Both can sign your tax return, and both can defend it if the IRS asks questions.
| Feature | Enrolled Agent (EA) | Certified Public Accountant (CPA) |
| Primary Focus | Taxation (100% focus) | Broad Accounting & Finance |
| Licensing Body | Federal (IRS) | State Boards of Accountancy |
| IRS Representation | Unlimited Rights | Unlimited Rights |
| Best For… | Tax preparation, IRS resolution, and expat compliance. | Tax prep plus broader business accounting or financial planning. |
Why You Don’t Have to Choose at Greenback
If you are looking for an accountant on your own, you might have to decide between hiring a firm that markets “CPA Services” or one that is “EA focused.”
At Greenback, you don’t have to make that trade-off.
We know that the quality of your tax return depends on the experience of the accountant, not just the letters after their name. That is why our team includes both CPAs and EAs who are specifically trained in international tax matters.
- We Match You: We look at your specific situation—whether you are a digital nomad, a small business owner, or a retiree—and pair you with the accountant who has the most relevant experience.
- Flat Pricing: We don’t charge differently based on whether your accountant is an EA or a CPA. You pay for the complexity of the return, not the title of the preparer.
- Peer Review: Our EAs and CPAs often collaborate. Your return is prepared by a pro and reviewed for accuracy, ensuring nothing is missed.
Which One Is Right for Me?
While we handle the matching for you, here is a general guide on how we think about it:
- You likely need an EA if you want a dedicated tax expert to handle your Form 1040, file your FBARs, and help you catch up on back taxes. Their federal license enables them to navigate the IRS bureaucracy effectively on your behalf.
- You likely need a CPA if: You own a complex business and need help with financial statements or business valuation in addition to your taxes, or if you need a specific state-level certification for a business reason.
Next Steps
The most important thing isn’t the title—it’s taking action. Whether you work with an EA or a CPA, the goal is the same: accurate filings, no penalties, and peace of mind.
If you realize you are in over your head and worried that you will mess it up, let us help.
- Get Started: If you are ready to be matched with a Greenback accountant, click the button below.
- Consult: Do you have questions about the process? Contact us, and one of our Customer Champions will be happy to address all your concerns.
The Best Expat Tax Returns Start With the Right Match.
Tax rules can be complex and subject to change. The information provided here is for general educational purposes and does not constitute professional tax or legal advice.
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