Hiring a CA Tax Attorney? An Enrolled Agent can do it all, for Less

If you’ve been on the receiving end of some “not-so-good” news from the IRS, such as a notification of a tax audit or the threat of a tax levy or a lien, you may be looking for help from a tax expert. Although your first inclination could be to hire a tax attorney, you may be interested to know that an enrolled agent (EA) can handle all of the same tax issues that a tax attorney does, for a whole lot less (an experienced tax attorney would charge from $600-$2,000 per hour, vs. an experienced EA would charge from $200-$400 per hour). Enrolled agents are required to demonstrate competence in every area of taxation, ethics, and representation in order to obtain and keep their practice privileges with the IRS. What’s more, they specialize in tax law, requirements, and the ever-changing tax codes. Hiring an EA and giving him or her power of attorney to resolve your tax problems is a cost effective way to handle your tax issues in lieu of a tax attorney.

Enrolled agents are able to advise, represent, and prepare tax returns for any personal or business entities with tax-reporting responsibilities, including:

• Individuals
• Partnerships
• Corporations
• Estates
• Trusts

EA’s are also able to represent you, and negotiate on your behalf for the most common things you’d seek a tax attorney’s assistance with. Since they have such specialized training, they may be able to get to the heart of the issue more quickly, and cost effectively, than a tax attorney. EA’s provide a wide range of services to clients, over and above tax advice and filing. You can hire an EA to do any of the following:

• Provide Tax Audit representation for any type of audit you may be issued – by mail, at an IRS office, or your own home or office.
• Submit an Offer in Compromise to reduce/resolve your tax liability, so you can get a fresh start.
• Aide you in having Tax Levies and Tax Liens removed.
• Deal with the tax implications of a bankruptcy.
• Handle Employment Taxes, and work with the IRS to clean up any unresolved payment issues.
• Help with filing Unfiled Tax Returns and negotiate any possible savings on penalties and/or interest.
• Provide Opinion Letters for complicated tax issues before you take a large deduction or make an investment decision or even after you made your decision.
• Represent you and Appeal any denial by the IRS.

Enrolled agents have client-EA confidentiality privilege, just as a tax attorney does. Most importantly, enrolled agents are the only federally licensed tax practitioners who specialize in taxation, with unlimited rights to represent taxpayers before all administrative levels of the IRS.

Still Not Sure? Enrolled Agent Qualifications Explained.

You may not be sure. After all a tax attorney is “an attorney,” and presumably, highly qualified. You may be right, with the right attorney; however, a tax attorney doesn’t necessarily practice only tax law. He (or she) may also handle several other types of cases and clients.

On the other hand, an enrolled agent is a highly specialized field. In order to represent taxpayers before the Internal Revenue Service, an EA must pass a comprehensive examination and background check conducted by the US Treasury on individuals, businesses, trusts and representation or has earned the designation through experience in working directly for the IRS. They are also required to complete ongoing training and specialized education.

Enrolled Agent status is the highest credential one can receive from the IRS, and as such these individuals are held to high ethical and business standards.

Enrolled agents have unlimited practice rights; this means they 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.

To learn more about enrolled agents, tax attorneys or CPAs you can refer to Treasury Department Circular 230.

Weigh the Options

If you are considering hiring a California tax attorney, you might want to know that you do have options.

More cost effective options.

Depending upon your needs, the average cost for an experienced California tax attorney ranges from $600/hour and can easily go up to $2,000/hour. You can see how this can quickly add up, especially in complicated tax matters.

The average cost for an experienced Enrolled Agent are just $200-400/hour, and many will have a set flat rate for handling specific types of filings, meetings, and representation.

For example: an average tax representation engagement by a tax attorney would be $12,000-$50,000, by an EA, the same tax engagement would average $3,000-$10,000.

Since each situation is different, it’s best to set up an initial phone consultation to discuss your needs and determine the best fit for you.

About Us

Our firm has an “A+” rating with the Better Business Bureau and all cases are personally handled by the principle of the firm, Mike Habib (EA).

With over 20 years experience in financial and taxation advisory to individuals, small businesses, and fortune 500 companies; we have solutions to your tax problems.

• I handle each client's case personally and attempt to successfully negotiate the best possible solution for him or her.
• I offer a free initial consultation so that I can gather the facts and determine what options are available for you.
• Evening and weekend appointments for clients that cannot meet with me during the week.
• Let me take the burden off your shoulders.