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EAs, Tax Attorneys, and CPAs, and the Differences Between Them
When hiring a tax professional, it is important to find the most appropriate person for the job at the best price. Enrolled Agents, tax attorneys and CPAs all advertise in the phone book and on the Internet. And of course, all of them claim to be the best in the business. Before deciding who would be the best person to hire to help with your unique tax situation you should know the difference between them.
In short, an enrolled agent (EA) is a tax practitioner who is authorized by the federal government. EAs are specifically skilled tax experts who are empowered to represent clients before the IRS and can handle matters concerning collections, appeals and audits. A tax attorney, as the name implies, is a tax law specialist and can represent a client in a court of law. A certified public accountant (CPA) is an expert in accounting. Tax matters may or may not be one of their specialties.
If you find yourself in a difficult tax situation, and you feel you might be headed to court, the person to hire is a tax attorney. However, for out of court issues, an enrolled agent can do the same job for less money. Enrolled agents can represent you before the IRS,but only an attorney can represent you in court.
You can feel confident hiring an EA as long as the particular agent has experience representing taxpayers before the IRS. Tax attorneys and CPAs may also capable. However, their fee will most likely be significantly higher. And an experienced EA will do the job with as much efficiency and skill.