What is an EA?
Should I hire an Enrolled Agent (EA) over an attorney or a CPA?
An Enrolled Agent (EA) is a person who has earned the privilege of representing taxpayers before the IRS in all fifty states. Like attorneys and CPAs, EAs are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
Most CPAs do not handle representation but they can be effective powers of attorney before the IRS or state tax authorities. We regularly work with CPAs who refer their clients with past due tax issues, since that is not their specialty. In my experience, CPAs are great for corporate audits, financial accounting and reporting, and other highly technical matters. They do not often represent taxpayers as powers of attorney before the IRS and receive their licensure from state boards of accountancy, whereas EAs are exclusively licensed by the IRS.
Attorneys are an excellent choice for tax resolution. In my experience both working for and managing attorneys in the tax relief industry, I find they are outstanding negotiators but often do not pick tax resolution when they set out to be a lawyer. The best tax attorneys work in DC and New York, where they defend and litigate high profile cases in court. For instance, I would recommend an attorney if the case has been recommended to the Department of Justice (criminal IRS cases), or if my client is regulated by FINRA. These outlier cases call for expensive attorneys with hourly retainers, since they can take several years. If your looking for a flat-rate, upfront fee, your best bet is to avoid attorneys who bill hourly and often. Attorneys are also often burdened with student loan debt from expensive law schools, and often choose (or settle for) tax resolution as a last resort
EAs are great options if they are competent, professional, with years of experience. Whereas an attorney may have trained to practice in court, clerked for a judge, or learned all the many facets of law, EAs are specialized for this exclusive niche of the tax code.
It’s easy enough to say that you are more likely to have a positive outcome when every conversation isn’t measured in six minute increments by an attorney, or that the person who is best suited for tax auditing may not be the most aggressive negotiator. Those blank statements don't account for the great tax lawyers and CPAs who do charge appropriate fees and negotiate effectively for their clients.
In the end it is up to you to do your research and make an effective choice for your particular situation. Of course, we believe EAs are the best fit for this type of work. In fact, some tax relief firms do not advertise that their attorneys are attorneys, since all representation with the IRS is regulated by Circular 230. The attorneys all earned the EA designation and are listed as Enrolled Agents (not attorneys) since that better represents the work they are doing as powers of attorney with the IRS.
