Using a Tax Professional

Many Times a Tax Professional can be your best solution to solving tax issues

When it comes to dealing with the IRS people tend to be unsure if they should deal with the IRS on their own or hire someone to help them. Under the Taxpayers' Bill of Rights you are allowed to have a tax professional handle any issue you have with the IRS. There are only three types of tax professionals that can represent tax payers before the IRS. These three are tax attorneys, enrolled agents and CPAs.

How Tax Professionals Can Help

Tax professionals are great at dealing with the IRS for you. IRS employees (collectors or auditors) would much rather prefer dealing with a professional. Dealing with a professional makes their job easier.

IRS tax professionals know the likely outcomes of many IRS issues and chances are that they have worked through many cases like your own. They understand that the IRS works around a formula and their job is to understand that formula and make your numbers add up to what the IRS is looking for. Tax professionals also don't carry an emotional attachment to the problem like you may have. Most of the IRS's power and ability to get what they want comes from their intimidation factor, using a professional makes this weapon of theirs useless.

Should You Hire a Tax Professional?

There are many times where it would be to the tax payers benefit to handle issues with the IRS on their own. IRS tax professionals cost money and the amount you pay varies by the tax problem you have. Some times these fees are too much to justify the service that these tax professionals are doing. Below are a few instances where you can easily use the information from this site to handle the issues on your own.

1) You received an audit notice and you have all proper back up and can legitimately come up with support for the majority of the items on the tax return. With that being said, you also have nothing to hide and you did not knowingly make any miscalculations. The IRS has a process to select returns to audit, some are completely random and you can just have one of those cases.
2) You owe the IRS $10,000 or less and you do have the ability to pay this off over time. Owing $10,000 or under is a very minimal amount to the IRS and they will allow you to pay this off over time without any questions asked through an installment agreement.

In the cases above it might be in your best benefit to take on the IRS on your own, if you feel like you may run into problems a tax professional will help you, but you will be paying more than if you did it on your own.
...More on benefits of using a tax professional

Types of Tax Professionals

There are three main types of professionals when dealing with back taxes issues. These are tax attorneys, CPAs (certified public accountant), and enrolled agents.

Tax Attorney
Tax attorneys are lawyers who deal with complex and technical field of tax law. A tax attorney is a good option if there is a large amount of money involved, typically $15,000 and up, you are going to court for tax related issues or the IRS has accused you of tax fraud. Tax attorneys are best to use when dealing with complex tax law and technical tax issues.

CPA (Certified Public Accountant)
CPAs are state licensed tax professionals. CPAs deal mainly with technical accounting and auditing.

Enrolled Agent
An enrolled agent is a tax advisor and tax preparer who is specifically licensed to practice before the IRS. On average, an enrolled agent is the most experienced professional to work with in dealing with the IRS. They are typically the least expensive to hire as well.

Tax Professional Articles

Connect with a Tax Professional
Request a free consultation from one of our tax professionals and find your best solution for resolving your tax problems.

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