Are You Authorized to Represent Clients Before the IRS and State Tax Agencies?

A Comprehensive Guide by Mike Habib, EA

When it comes to resolving tax issues, one of the most common questions taxpayers ask is, “Who is authorized to represent me before the IRS and state tax agencies?” This is a critical question because not everyone can act as your representative in tax matters. Choosing the right professional can make all the difference in resolving your tax problems efficiently and effectively.

As a Los Angeles-based Enrolled Agent (EA) with over 20 years of experience, I specialize in representing individuals and businesses before the IRS, FTB, EDD, CDTFA, and other state tax agencies. In this article, I’ll explain who is authorized to represent clients in tax matters, what makes Enrolled Agents uniquely qualified, and how my firm can help you achieve the best possible outcome.

Let’s dive into this topic in an engaging FAQ format to make it easy to understand and actionable.

Who Is Authorized to Represent Clients Before the IRS and State Tax Agencies?

The IRS and state tax agencies have strict rules about who can represent taxpayers in tax matters. Here are the three main types of professionals authorized to represent clients:

1. Enrolled Agents (EAs)

Enrolled Agents are federally licensed tax professionals who specialize in tax matters. They are authorized to represent taxpayers before the IRS in all tax matters, including audits, collections, and appeals.

Key qualifications of Enrolled Agents:

• Must pass a rigorous three-part Special Enrollment Examination (SEE) covering individual and business tax laws, as well as representation practices.
• Subject to a thorough background check by the IRS.
• Required to complete continuing education annually to maintain their license.

Why choose an EA? Enrolled Agents are tax experts with specialized knowledge and experience. Unlike CPAs and attorneys, EAs focus exclusively on tax matters, making them uniquely qualified to handle complex tax issues.

2. Certified Public Accountants (CPAs)

CPAs are state-licensed professionals who provide a wide range of financial services, including tax preparation and representation.

Key qualifications of CPAs:

• Must pass the Uniform CPA Examination.
• Licensed by state boards of accountancy.
• Required to meet continuing education requirements.

Limitations: While CPAs are highly skilled, not all CPAs specialize in tax matters. It’s important to choose a CPA with specific expertise in tax representation.

3. Tax Attorneys

Tax attorneys are lawyers who specialize in tax law. They are authorized to represent clients in all tax matters, including litigation in Tax Court.

Key qualifications of tax attorneys:

• Must pass the bar exam and be licensed to practice law.
• May have additional certifications in tax law, such as an LL.M. in Taxation.

When to choose a tax attorney: Tax attorneys are ideal for cases involving criminal tax issues, complex legal disputes, or litigation.

Who cannot represent clients before the IRS?

While many individuals offer tax preparation services, not all are authorized to represent clients before the IRS. For example:

• Unlicensed tax preparers: Can prepare tax returns but cannot represent clients in audits or appeals.
• Bookkeepers: May assist with financial records but are not authorized to represent taxpayers.

What makes Enrolled Agents (EAs) unique?

Enrolled Agents hold a special designation that sets them apart from other tax professionals. Here’s why EAs are uniquely qualified to represent clients before the IRS and state tax agencies:

1. Federally Licensed

Unlike CPAs and attorneys, who are licensed at the state level, EAs are federally licensed by the IRS. This means they can represent taxpayers in any state, making them an excellent choice for individuals and businesses with multi-state tax issues or international tax concerns.

2. Tax Experts

EAs specialize exclusively in tax matters, including:

• Tax preparation.
• Tax planning.
• Audit representation.
• Tax debt resolution.

This focused expertise ensures that EAs are well-versed in the latest tax laws and regulations.

3. Comprehensive Representation

EAs can represent clients in all interactions with the IRS, including:

• Audits.
• Appeals.
• Collections.
• Tax Court (with additional qualifications).

4. Continuing Education

EAs are required to complete at least 72 hours of continuing education every three years, ensuring they stay up-to-date on tax laws and best practices.

How do I know if I need representation?

Not every tax issue requires professional representation, but there are certain situations where having an experienced representative is essential. Here are some common scenarios:

1. IRS or State Tax Audits

If you’ve received an audit notice, professional representation can help you navigate the process, ensure compliance, and minimize potential liabilities.

2. Tax Debt and Collections

If you owe back taxes and are facing collection actions, such as wage garnishments or bank levies, a representative can negotiate on your behalf to secure a resolution.

3. Appeals and Disputes

If you disagree with an IRS or state tax agency decision, a representative can help you file an appeal and present your case effectively.

4. Complex Tax Situations

If you’re dealing with multi-state tax issues, international tax matters, or other complex situations, professional representation is invaluable.

How can Mike Habib, EA, Help You?

As a Los Angeles-based Enrolled Agent, I specialize in representing clients before the IRS and state tax agencies. Here’s how my firm can help:

1. Audit Representation

If you’re facing an IRS, FTB, EDD, or CDTFA audit, I’ll handle all communications and documentation on your behalf. My goal is to ensure a fair outcome while minimizing your tax liability.

2. Tax Debt Resolution

I offer a range of tax debt resolution services, including:

• Offer in Compromise: Settle your tax debt for less than the full amount owed.
• Installment Agreements: Set up manageable payment plans.
• Penalty Abatement: Reduce or eliminate penalties.

3. Appeals and Disputes

If you disagree with a tax agency’s decision, I’ll represent you in the appeals process, presenting a strong case to achieve the best possible outcome.

4. Multi-State and International Tax Issues

I have extensive experience handling multi-state tax issues and assisting Americans living overseas with their U.S. tax obligations.

5. Tax Planning and Compliance

I’ll help you develop a tax strategy to minimize your liability and ensure compliance with federal and state tax laws.

FAQs About Tax Representation

Why choose Mike Habib, EA?

When it comes to tax representation, experience and expertise matter. Here’s why clients trust my firm:

1. Proven Track Record

I’ve successfully represented thousands of clients in audits, appeals, and tax debt resolution cases.

2. Personalized Service

Every client’s situation is unique, which is why I provide customized solutions tailored to your specific needs.

3. Nationwide Reach

Although I’m based in Los Angeles, CA, I serve clients nationwide and internationally.

4. Stress-Free Process

I handle all aspects of your case, so you can focus on your life or business without the stress of dealing with tax agencies.

5. Commitment to Excellence

As an Enrolled Agent, I’m committed to upholding the highest standards of professionalism and ethics.

If you’re facing tax issues and need professional representation, it’s essential to work with someone like Mike Habib, who is authorized, experienced, and dedicated to achieving the best possible outcome. As a Los Angeles-based Enrolled Agent, I have the expertise and authority to represent you before the IRS and state tax agencies, no matter where you’re located.

Don’t let tax problems overwhelm you—contact my firm today for a free consultation. Together, we’ll develop a strategy to resolve your tax issues and give you the peace of mind you deserve.

For more information about IRS or state tax relief, IRS or state tax problem resolution, and how I can help, contact me through my website or call my office today at 1-877-788-2937 [1-877-78-TAXES]. I’m here to help taxpayers in Los Angeles, across the U.S., and even Americans living overseas.