Who Can Help With IRS Problems? Understanding the Roles of Tax Professionals

Roles and Responsibilities of Tax Professionals

I recently spoke with a prospective client who was frustrated because she had talked to several attorneys, some of whom charged her thousands of dollars and then withdrew, and some who just didn’t give her a good feeling. The sad part of this story is that she really didn’t know who she should be talking to about the situation. This is a common occurrence.

People with tax issues not actually knowing where to go for information or help. Let’s talk about the responsibilities of each category of tax professional. Everybody is familiar with the Tax Preparer.

This person has the limited authority to prepare a return. They have no license, but rather a Preparer Tax Identification Number or PTIN.

They cannot represent taxpayers before the IRS at this level.

They can prepare returns and may help licensed professionals by explaining their process. Another familiar entity is the Certified Public Accountant.

This is a person who has a sufficient college courses to qualify to take four exams, passes those exams, works for a CPA firm for a period of time as dictated by state law. They are licensed by their respective states. The Internal Revenue Service recognizes their license to represent taxpayers.

Not all CPAs are tax resolution experts. Many chose to avoid doing taxes altogether focusing their practice elsewhere. The Enrolled Agent is a person licensed by the Department of the Treasury to represent taxpayers before the IRS. As an aside, Enrolled Agents can represent taxpayers in 49 of the 50 states whether they live there or not.

Currently only Oregon requires a separate test to represent taxpayers. The Enrolled Agent is focused in the area of tax. Not all Enrolled Agents represent taxpayers, but all are focused in the tax arena. The final entity that may represent taxpayers is the Attorney. Lawyers, like CPAs are licensed by their respective states and such other states as they may apply to practice.

It is important to note that very few lawyers specialize in tax controversy. Even fewer lawyers prepare tax returns. Unless IRS Criminal Investigation Division or the case may end up in Tax Court, there is no absolute need for a lawyer. Of course, Tax Lawyers may do a great job, but usually more expensive than necessary.

At Books, Taxes & More, LLC, we are very passionate about representing taxpayers. Steve Perry, EA is extremely passionate about representing taxpayers in controversies.

We do everything in our power to keep as much of a taxpayer’s money in their pocket as possible. Contact Steve to discuss your situation.