If the IRS is coming after you for your tax debt, you may be wondering if you need to hire a tax attorney to resolve your tax problem. The answer is no; you have options. Keep reading to find out more.
Given the complexity of tax regulations and that the tax code is always changing, several different tax-related professions have made their way into the industry. It’s important to choose the right tax professional so that you can save money and get the best outcome for your tax debt problem.
Having tax debt is stressful enough on its own, but dealing with the IRS is even worse. It can be terrifying and frustrating. Just as you wouldn’t attempt to perform surgery on yourself, you should not try to handle your tax debt on your own if the IRS is coming after you.
Today we’ll be talking about your options for representation and which one will help find the tax solution that is most suitable for your situation.
What’s a tax attorney?
A tax attorney assists clients in navigating complex federal, state, and municipal tax laws. You might require the services of a tax attorney to handle problems like disagreements with tax authorities, tax debt, estate planning, or business planning.
Tax attorneys are experts in the specifics of the IRS tax code. In particular, they offer guidance on complex legal matters including trusts, estate planning, tax disputes, and company tax legislation. Lawyers are skilled negotiators who weigh case facts against the law and create cases that best support a desired outcome. They can utilize the legal system to their advantage to resolve tax disputes.
A tax attorney may assist with tax return preparation, but they are not accountants and rarely handle IRS tax filing. Tax attorneys lack the skills of accountants when it comes to optimizing deductions and making long-term plans for tax years.
You may require the services of a tax attorney for the following reasons:
- You’re planning to launch a business and need legal advice on your company’s structure and tax treatment.
- You are involved in international trade and require assistance with contracts, taxation, and other legal issues.
- You intend to sue the IRS.
- The IRS has opened a criminal investigation against you.
- You need the protection of the attorney-client privilege because you committed a tax felony.
Tax attorneys uphold the attorney-client privilege, which means they cannot be compelled to provide information to other parties or speak against you. A tax attorney is a good choice if your tax issue is likely to end up in tax court or if you were accused of a crime linked to taxes.
What’s an enrolled agent?
Enrolled agents are the only tax professionals who are licensed directly by the IRS and the US Treasury. This means the IRS issues the title of enrolled agent (EA).
They are experts in tax issues and are certified after completing a thorough exam that covers every facet of the tax law or by working for the IRS for five years in a position that routinely interpreted and applied the tax code and its rules. Enrolled agents represent taxpayers throughout audit investigations, IRS collections, offers in compromise, and penalty reductions. An enrolled agent is a suitable alternative if you are subject to an audit but don’t think you committed a tax crime or if you failed to file the proper documents.
Similarities
Both tax lawyers and enrolled agents are granted unlimited legal counsel before the IRS. They can represent individuals and corporations in any tax dispute with the IRS, excluding criminal cases. Both tax attorneys and enrolled agents must register with the IRS to practice. They may lose the right to practice if they don’t follow the rules. Violations include failing to warn clients who break tax rules, felony convictions involving dishonesty, and verbally abusing IRS agents.
Differences
There are no minimum educational qualifications for enrolled agents, although tax attorneys often need to complete law school and pass a state bar test. The IRS mandates that enrolled agents complete a minimum of 72 hours of continuing education credits every three years. This is to keep their understanding of current tax laws and concerns up to date.
Some states require lawyers to complete continuing education programs to keep their licenses. The IRS does not impose this on tax lawyers. Attorney-client confidentiality is permitted in criminal situations. For enrolled agents and their clients, the IRS permits secrecy only in non-criminal proceedings.
Which one should I choose?
Unless you’re dealing with criminal tax issues we recommend choosing an enrolled agent to represent you. Enrolled agents specialize in helping people who owe money to the IRS or State. Another reason is that Enrolled Agents typically bill by the hour at a lower rate than an attorney.
Hire an enrolled agent- it’s the smart thing to do!
The IRS is ruthless when it comes to taking what they think you owe them. Protect your assets and hire a professional to represent you. An enrolled agent is your best friend if you have over $10,000 in tax debt and need protection from the IRS.
Looking for the right EA to represent you? Andrin Tax Relief has a team of competent enrolled agents who can assist you with a variety of tax issues like back tax problems, wage garnishments, tax liens, and more. Contact Andrin Tax Relief to find relief from tax debt and end your tax problems for good.
