| If you or your business is facing complicated tax | | | | court, it may be that neither a tax attorney nor a CPA |
| issues, you probably know about two of your options | | | | will be of maximum benefit. Their education and training |
| for professional assistance. You can hire a tax | | | | do not necessarily give them an in-depth understanding |
| attorney or a certified public accountant (CPA). A third, | | | | of how to deal with the IRS outside of the formalities |
| lesser known option is to hire an enrolled agent. Which | | | | of a courtroom or an audit situation. |
| type of professional you choose depends largely on | | | | This is where enrolled agents come in. There are two |
| your specific needs. | | | | types of enrolled agents: those who have worked for |
| When dealing with arbitration or any matters that will | | | | the IRS for a minimum of five years in a position that |
| be resolved in the courts, tax attorneys are the | | | | involved regulation and enforcement, and those who |
| obvious and sometimes the only choice. While you | | | | have taken a thorough examination on all aspects of |
| may find tax attorneys willing to handle other aspects | | | | the US tax code. Basically, an enrolled agent is |
| of your tax situation, you should know that attorneys - | | | | someone who knows the IRS inside and out. |
| while experts in legal matters - may not be efficient or | | | | In order to maintain their credentials, enrolled agents - |
| up-to-date concerning tax issues outside the court | | | | like CPAs - must keep up-to-date with continuing |
| system. You may find yourself paying exorbitant | | | | education programs. They can appear before the IRS |
| hourly rates for work that would be better handled by | | | | to represent individuals or businesses. And because |
| a CPA or enrolled agent. | | | | they deal with ongoing, day-to-day issues, they often |
| CPAs maintain their credentials with continuing | | | | charge a fixed rate instead of by the hour, which is |
| education programs that keep them current on the | | | | how tax attorneys and CPAs generally do their billing. |
| latest changes in IRS forms and procedures. Working | | | | Moreover, enrolled agents are licensed by the federal |
| with a CPA as you plan your finances could prevent | | | | government, whereas CPAs and tax attorneys are |
| you from ever needing the services of a tax attorney. | | | | licensed by the state in which they practice. Individuals |
| They are also adept with IRS audits. Anyone who has | | | | or businesses with tax issues in more than one state |
| experienced an audit knows how confusing, | | | | can consolidate their representation with an enrolled |
| complicated and frustrating they can be - and how | | | | agent instead of hiring different CPAs or attorneys for |
| expensive they can become if not dealt with properly. | | | | each state. |
| If you're being audited, a CPA is probably your best | | | | Review your particular needs carefully when choosing |
| option for professional representation. | | | | which type of representation is best for you. But be |
| However, if you are undergoing negotiations with the | | | | sure to look closely at the advantages of the |
| IRS or trying to resolve a tax issue without taking it to | | | | often-neglected enrolled agent. |