Tax Relief AnswersEnrolled Agent, CPA or Tax Attorney: Who to Hire
The short answer
Only enrolled agents, CPAs and attorneys have unlimited rights to represent you before the IRS, according to the IRS credentials page. Any of the three can handle a payment plan, an Offer in Compromise or a collection appeal, so the right choice depends more on your case than on the title. Check the person in the IRS directory of credentialed preparers and give authority only through Form 2848.
Enrolled agent, CPA or attorney
| Enrolled agent (EA) | Certified public accountant (CPA) | Attorney | |
|---|---|---|---|
| Licensed by | The IRS, after a suitability check and a three-part exam | A state board of accountancy (or D.C. or a U.S. territory) | A state court or its designee, such as the state bar |
| Rights before the IRS | Unlimited representation | Unlimited representation | Unlimited representation |
| How to verify | IRS directory | IRS directory or the state board | IRS directory, the state bar or the state court |
An enrolled agent's license is about tax alone. A CPA's license also covers accounting work, which can help when business records need to be rebuilt before the IRS will look at a request. An attorney is the professional to ask when a matter could end up in court or could involve possible criminal exposure.
Preparers in the IRS Annual Filing Season Program can represent only clients whose returns they prepared, and never on appeals or collection issues. Preparers who hold only a PTIN (preparer tax identification number) have no authority to represent clients for returns prepared after 2015.
How to verify a professional
- Ask for the person's full legal name, credential and the state that issued the license.
- Search the IRS directory. It lists attorneys, CPAs and enrolled agents who hold a valid PTIN, along with Annual Filing Season Program participants.
- For a CPA, confirm the license with the board of accountancy in the issuing state. For an attorney, confirm admission with that state's bar or court.
- Make sure the person you checked is the one who will sign Form 2848 and work your case.
Form 2848, the power of attorney
Form 2848, Power of Attorney and Declaration of Representative, lets a person who is eligible to practice before the IRS represent you and see your confidential tax information. A student working in a qualified Low Income Taxpayer Clinic can also represent you under a special authorization from the Taxpayer Advocate Service. A professional can send the authorization to your IRS Online Account, where you review and e-sign it. Before you sign, check that the form names the person you verified and only the tax years and matters you agreed to, and keep a copy.
Questions to ask before you hire
- What is your credential, and in which state are you licensed?
- Will you sign Form 2848 and handle my case yourself, or will someone else?
- How often do you handle IRS collection cases like mine?
- Which IRS option do you expect to request, and why? Could I request it myself?
- What is the total fee, what do I pay before any result, and what is the refund policy?
- How will you keep me informed, and will I get copies of everything sent to the IRS?
Vague answers, or a promised result before anyone reviews your finances, are warning signs; see the red flags and fees pages. The IRS also publishes its own guide to choosing a tax professional.
FAQ
Who can represent me before the IRS?
Enrolled agents, CPAs and attorneys have unlimited representation rights before the IRS. Annual Filing Season Program preparers have limited rights that do not cover collection, and preparers with only a PTIN cannot represent you.
What is the difference between an enrolled agent and a CPA?
An enrolled agent is licensed by the IRS and the license covers tax matters, while a CPA is licensed by a state board of accountancy and the license also covers accounting work. Both have unlimited representation rights before the IRS.
Do I need a tax attorney for IRS debt?
Not necessarily, since enrolled agents and CPAs have the same representation rights before the IRS. An attorney is the professional to ask when a matter could go to court or involve possible criminal exposure.
What does Form 2848 do?
Form 2848 authorizes a person who is eligible to practice before the IRS to represent you and to see your confidential tax information for the tax years and matters listed on it.
How do I check a tax professional's credential?
Search the person's name in the IRS directory of credentialed preparers, then confirm a CPA's license with the state board of accountancy or an attorney's admission with the state bar or court.