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Do I need a tax attorney for IRS problems?

“Do I need a tax attorney for my IRS problems?” is probably one of the most common questions we are asked when speaking with a potential client. It is right up there with “What’s the difference between a tax attorney and an Enrolled Agent (EA) when it comes to my tax problem?” The answer to this question lies in the definition of a tax attorney and an Enrolled Agent.

What is a Tax Attorney?

A tax attorney is a specialist in federal, state and municipal rules and policies that pertain to tax liability and processes of taxation related to estate transfers, material and intellectual property acquisitions, all sources of income and all kinds of business transactions. Most tax attorneys are retained in a consulting capacity; however, they can and should be hired when dealing with a dispute that cannot be resolved outside the tax court.

What is an Enrolled Agent?

An Enrolled Agent is a federally authorized tax practitioner who has been granted representation rights by the U.S. Department of Treasury (IRS). EAs represent taxpayers before the IRS for tax issues including audits, collections and appeals but not litigation.

“Tax law is a funny thing. I think it fair to say that most CPAs (EAs) know something about the federal income tax; many if not most lawyers do not.” ~ Bernard Wolfman

Which one do I need, a tax attorney or an EA?

Dealing with the IRS is intimidating, but what can be even more daunting is not knowing if you are hiring the right company or individual to help with your tax debt.

When a taxpayer is deciding who to hire, there are few occasions when the need for and the cost of hiring a tax attorney are going to be beneficial, such as IRS problems with an anticipated court appearance against the IRS.

The large majority of cases with the IRS are handled at an administrative level within the collections department. This means the majority of cases never make it to litigation in tax court, which would require a tax attorney, and are easily handled by an Enrolled Agent.

When looking at the investment you will make to handle your tax debt, a conversation with an Enrolled Agent will help you understand what you are dealing with and if you will need a tax attorney for your IRS problems.

Using our IRS Tax Investigation Program, True Resolve Tax Professionals can quickly tell you what you are facing, the steps needed to resolve your tax bill and whether a tax attorney is a necessary expense. Contact us today to start the IRS Tax Investigation Program and find out what your next step needs to be. This service is offered at no cost and no obligation to you simply by mentioning this article.

Watch the video below for additional information on the differences between tax attorneys and Enrolled Agents and how they can help meet your unique accounting needs.