If you owe money to the IRS, receive a collection notice, or need help resolving a tax problem, you may assume that you need to hire a tax attorney. In many situations, however, a tax attorney is not the only professional who can represent you before the IRS.
CPAs and Enrolled Agents can also have broad representation rights before the IRS and may be able to handle many common tax-resolution matters.
For taxpayers in El Paso dealing with IRS problems, the right professional depends largely on the nature of the issue.
Can a CPA Negotiate With the IRS?
Yes. A CPA who is authorized to represent taxpayers before the IRS can communicate with the IRS on a client’s behalf and assist with many tax controversy and collection matters.
This may include helping taxpayers with:
- IRS notices
- Past-due tax balances
- Installment agreements
- Penalty relief
- Collection matters
- Unfiled tax returns
- IRS audits
- Appeals
- Offers in compromise when appropriate
A taxpayer will generally sign a Power of Attorney, commonly Form 2848, authorizing the CPA to communicate with the IRS regarding specified tax matters.
When Might You Need a Tax Attorney?
There are circumstances where working with a tax attorney may make more sense.
Tax attorneys are particularly valuable when a matter involves significant legal issues, potential criminal exposure, complex litigation, or legal advice that extends beyond tax return preparation and administrative representation before the IRS.
For example, you may want to speak with a tax attorney when there are allegations of tax fraud, a criminal tax investigation, litigation in federal court, or another matter where attorney-client privilege and legal representation are especially important.
For many ordinary IRS collection and compliance problems, however, hiring an attorney may not be necessary.
What If You Already Owe the IRS?
Not every tax problem begins with careful planning.
Business owners and individuals sometimes fall behind on estimated payments, miss filing deadlines, experience unexpected financial problems, or simply do not realize how serious an IRS issue has become until notices begin arriving.
The important question at that point is not what should have happened in the past. It is what options are available now.
Depending on the circumstances, taxpayers may have options involving payment arrangements, penalty relief, collection alternatives, or other resolution strategies.
The first step is usually understanding exactly what is owed, which tax years are involved, whether all required returns have been filed, and what collection activity the IRS is currently pursuing.
CPA vs. Tax Attorney for IRS Representation
Choosing between a CPA and a tax attorney depends on the problem.
A CPA may be a particularly good fit when the issue involves tax calculations, prior-year returns, business taxes, IRS notices, penalties, payment arrangements, or ongoing tax compliance.
A tax attorney may be more appropriate when the matter involves significant legal disputes, criminal exposure, or litigation.
In some complex cases, a CPA and tax attorney may even work together.
The goal should not be to hire the professional with the most intimidating title. It should be to find someone with the appropriate experience for the specific tax problem you are facing.
IRS Representation in El Paso, Texas
Borderland Tax Advisors helps individuals and business owners in El Paso understand and address IRS tax problems.
We can review IRS notices and account information, help determine what resolution options may be available, communicate with the IRS when authorized, and develop a strategy for addressing outstanding tax issues.
If you have received an IRS notice or owe taxes and are unsure what to do next, you do not necessarily need to handle the matter alone.
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