Tax Preparation VS. Tax Representation

The Basics

As many know, Tax Preparation and Tax Representation are completely different, but how do you know which one you need? What’s the difference? What kind of accountant or accounting service do I need? Taxes and accounting can be overwhelming, but that’s why you find an expert that can guide you through whatever circumstance you might be in, from simple income tax prep to owing the IRS back taxes over the past 5 years.

Enrolled Agents

First, we must go back to the basics to understand what kind of accounting professional you may need. To start, an Enrolled Agent, or an EA, is a tax professional who narrowly focuses on tax management for individuals or companies. Enrolled Agents typically focus on income, retirement, estate, gift, or payroll tax. In short, an Enrolled Agent is mainly utilized for their tax preparation services; because they have a more narrow focus, they are very knowledgeable in this regard.

Certified Public Accountant

On the other hand, a Certified Public Accountant has a more extensive repertoire than an Enrolled Agent would have. CPAs are approved by the state they practice in while an EA is approved by the federal government. CPAs can assist as consultants for all accounting and tax services for businesses and individuals they may represent.

Tax Attorney

Tax Attorneys are exactly what you would expect. They can be hired on to represent you in court against the IRS if necessary. Tax Attorneys specialize in tax law and can guide you through the legal process if you owe money to the IRS, if you have not paid your taxes for the past few years, etc. They can be a more expensive option, but a good one if you find yourself in a poor predicament.

What if I need help, but can’t afford a Tax Attorney?

If you are overwhelmed and stressed about your tax situation, there’s good news…you are not alone! Lots of people mismanage their taxes, don’t file, or simply procrastinate. Fortunately, if your situation requires a Tax Attorney, but you cannot afford one, there are options. Companies like True Resolve Tax Professionals exist to fill this need. True Resolve Tax Professionals can help anyone through their daunting tax situations. We help people who lose sleep convinced they are going to jail for paying or filing their taxes properly. We understand these people are good people, but hit some bumps in the road (like divorce or depression), or simply procrastinated because they simply aren’t good at bookkeeping. Representation is what we do. We represent taxpayers before the IRS for collections, audits, tax appeals, and more. If you need help, please contact us for a consultation.

In the end…

Tax preparation and tax representation are completely different. Preparation is most popularly used as a yearly service for an individual’s income tax. Representation is about helping people who are in trouble with the IRS. Helping these people have a guide in what to do when they owe the IRS money, or haven’t paid taxes in years, or who went through a nasty divorce and didn’t have time to stay on top of their taxes.