The honest answer is that both enrolled agents and CPAs have unlimited practice rights before the IRS. Both can represent you in audits, handle appeals, negotiate with collections, and resolve tax disputes. The differences are more about scope, focus, and licensing structure than legal authority.

Where enrolled agents have an advantage is geographic flexibility. An EA credential is a federal license issued by the IRS that works in all 50 states automatically. CPAs are licensed by individual states, which means a CPA in Arizona may need additional credentials to handle matters involving other jurisdictions. For businesses with multistate operations or owners who have relocated, this can matter.

The bigger practical difference is specialization. CPAs can perform audited financial statements, attestation work, and other services that enrolled agents cannot offer. That broader scope means many CPAs divide their attention across multiple disciplines. Enrolled agents typically focus exclusively on taxation because that’s what the credential covers.

Think of it this way. A CPA is a generalist with many options. An enrolled agent chose to specialize in tax by passing a rigorous IRS examination covering individual and business tax law, or by working for the IRS directly. That specialization often translates to deeper knowledge of tax code details, IRS procedures, and resolution strategies for problems that come up.

For IRS representation specifically, an enrolled agent may have more hands-on experience simply because that’s what they do all day. When you’re dealing with a notice, an audit, or a collections matter, you want someone who handles these situations regularly rather than as an occasional side service.

The credential also signals something about priorities. Someone who pursued EA status made a deliberate choice to focus on tax work and IRS representation. They invested time proving their expertise to the IRS itself, not just to a state licensing board.

For most small business owners, the question isn’t really about legal authority. It’s about who will handle your situation most effectively. A CPA who specializes in tax can be just as capable as an EA. But a CPA who primarily does audits or financial statement work may not be the best choice for IRS problems even though they technically have the authority.

When choosing between an EA and a CPA, ask what they actually spend their time doing. A Phoenix area business accountant who focuses on tax preparation and IRS issues will serve you better for those needs than someone whose practice centers on other services. The credential matters less than the experience and focus behind it.