When to Use a CPA for Help With Tax Problems

Using a State or IRS CPA

Like Tax Attorneys and Enrolled Agents, CPAs can represent (through power of attorney), advise, and prepare tax returns. You can be assured that CPAs are very knowledgeable in the tax field because they have to pass a comprehensive exam in the state with which they wish to practice in, have a college degree, and have experience with a CPA firm. You must be selective about the CPA you pick because many actually have had lots of experience with the IRS but others may have never dealt with the IRS. Some of the benefits for using a CPA are listed below.

When you have unpaid tax and you cannot pay, you are still expected to pay the IRS. For those individuals that cannot pay in full, the IRS offers many other methods of payment. These methods range from making monthly payments toward the tax amount owed to paying only a fraction of what is actually owed and calling it even. Depending on your financial situation, the IRS will always be willing to work with you.

Sophisticated Accounting Knowledge

CPAs normally have more knowledge about sophisticated accounting issues than tax attorneys or enrolled agents. Again, this means that they could be the best choice for help with an audit. This also means they can be helpful in preparing complicated tax returns.

Overall a CPA is the best choice for an IRS or state tax audit or filing tax returns; not to say that the other tax professionals couldn't do the same. CPAs are normally more numbers people and aren't the best at negotiating and being aggressive with IRS personnel like tax attorneys are.

Benefits of Other Tax Professionals

Benefits of a Tax Attorney
Benefits of an Enrolled Agent

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