I’m Not a CPA: Explaining Your Credential to Clients

If you are anything like me, you have to pick which battles are worth your time every year. When clients ask why their “tax return” has not been deposited into their bank account yet, do you take a moment to remind them that the refund is the deposit, and the return is the form that has been sitting in their client portal since March? When clients who owe money finally reach out to set up their “quarterly taxes,” do you let them know that, technically, they are not paid quarterly? When your clients report receiving a letter from the IRS that actually came from their state tax agency, is it worth reminding them that multiple tax agencies exist?

Details are our bread and butter, and we get paid well for knowing the differences between things like Schedule C and Schedule E, collection due process and the collection appeals program, and even things as simple as 1099s versus W-2s. And while it is our job to keep our clients informed, occasionally it is okay to let some of those no-harm semantic misunderstandings continue.

There is one such misunderstanding that I have struggled with for the past few years, and it is related to something I am incredibly proud of: my enrolled agent (EA) credential. I am not a certified public accountant (CPA) (as you might have guessed from the title of this article), but every year it seems as though many of my clients (prospective and long-term) seem to think I am. I receive emails from prospective clients who tell me they heard I am a great CPA and would like to work with me. Banks send my clients requests for comfort letters signed by their CPA (which I do not sign). Even some of my long-time friends assume that I am either a CPA or a tax lawyer.

It can be tempting to let this slip. After all, our tax clients are rarely looking for an actual CPA to offer any of the three “As” (auditing, attestation, or assurance). If they were, we would happily refer them to someone we know. Clients seeking competent tax professionals for preparation, planning, and/or controversy issues typically do not distinguish between an EA, CPA, or tax attorney. If we can do the job and they call us the wrong name, what is the harm?

My argument is that there is harm, even if it is imperceptible to you. Especially in the early stages of a relationship, you want to let your clients know your qualifications to put them at ease. Furthermore, this conversation helps increase the visibility of the EA credential overall. So do not be afraid to tell your clients that you are not a CPA.

“I’m Looking for a New CPA”

I get almost all of my referrals via email. Either a client gives someone my email address, or they reach out via a form on my website. Even though it says EA on the front page, and I explain what an “EA” is, I still have people tell me that they are looking for a “new CPA.” As someone who tends to over-explain, I have worked to
find different ways of engaging clients in this discussion.

The most basic way to broach the subject is with a simple question: “I noticed that you’re looking for a tax professional. You called me a CPA, but I’m actually an EA
[enrolled agent]. Are you familiar with the difference? And if not, would you like me to provide a brief explanation?” This is great because for self-motivated clients,
they will do a quick Google search, educate themselves, and save you from having to explain it.

Sometimes I just send them a few sentences that quickly explain my designations. Here is what I currently use:

Also, so you know, my designations are EA and USTCP. Certified public professionals are state-certified accountants who sometimes specialize in tax preparation. Enrolled agents are federally licensed practitioners who specialize in taxation (not accounting). United States Tax Court Practitioners (USTCPs) are non-attorneys admitted to practice before the U.S. Tax Court.

If you are talking to a client on the phone, you can practice this response:

“I noticed during our conversation that you referred to me as a CPA a couple of times. So, you know, I am not a CPA, but I am a tax professional. Do you know what an enrolled agent is?”

Having this conversation may add a few more minutes to your onboarding process, but it is important for three reasons. First, you set the tone for the relationship, helping them know that you are a reasonable person who does not talk down to them if they misspeak. As a bonus, clients who are bothered by a small correction like this likely are not ideal clients for you. Second, you increase the visibility of your credential, which helps you look more valuable to future clients. Finally, you help them understand your value as a professional and partner in their tax journey.

Please Have Your CPA Attest to…

Another bonus of being an EA is that banks and lenders often request comfort letters from tax professionals. Underwriters for mortgages often ask our clients for a letter from an accountant attesting to certain things. These attestations can include that distributions from a business bank account to pay a down payment will not
negatively impact the business, that all the information on a tax return is correct, or that certain documents were filed. Many professional organizations and insurance companies have asked tax professionals not to write or sign these letters, and I recommend following their advice.

However, one common mistake banks make is requesting that our clients have their “CPA” write the letter for them. When my clients request these documents, I do one of two things. Generally, I tell my clients that I am not a CPA (and that even if I were, I would not write that letter for them on ethical grounds) and to let the underwriter know that it cannot be provided. For clients that I really like, write a letter that says, “I am not a CPA; I am an enrolled agent [EA]. As such, I cannot comply with this request.” The letter goes into the underwriter’s file, and my clients enjoy their new house.

Keeping the Relationship Fresh

If you do not send an annual letter or email to your clients, I recommend that you do. Most of them will not read it, but for those who do, it can provide a reminder of your accomplishments and the services you offer.

I have had many clients move out of state and hire a new tax professional because they assumed I could not file tax returns in another state. I have also had clients hire tax professionals to do other tasks I could do because they assumed that I only do tax returns or that I only do individual taxes, or that they need a tax attorney if they are being audited. Unfortunately, when clients only deal with you in one or two areas, they may start to assume that those are the only services you offer. An annual email is helpful to remind clients of the services you offer, list some of the wins you have had with other clients, and quickly remind clients of your credentials.

People have short memories, and it helps to remind them of the value that you provide. It may be frustrating to re-explain what an enrolled agent is, but it is worth it, because the credential that we have is important. We provide an important bridge between taxpayers and the government.

Final Thoughts

Around 0.2 percent of the United States population are actively licensed CPAs, while around 0.02 percent of the population are EAs. You are about 10 times more likely to run into a CPA than you are an EA. But we are not the only designation that gets confused by the public. Psychologists are sometimes called psychiatrists, professors with doctorates are confused with medical doctors, and, of course, USTCPs confuse their family members after having to explain once again that they are not lawyers (even though they are admitted to practice before the U.S. Tax Court Bar).

In a world where refunds are returns, quarterly payments are made in June and then September, and every tax document is mistakenly called a “1099,” we have to
accept that we will have to do some work to clarify these little misunderstandings. But we should remember the value of our credentials and make sure that our clients know our value to them.