Facing a tax issue—whether it’s an alarming IRS notice, audit, or unpaid balance—is overwhelming and mentally all-consuming. When taxpayers look for help with these issues, they often wonder who they should call for help—an Enrolled Agent or a tax attorney?
Both professionals play a key role in resolving tax problems, but they do serve different functions and have different areas of expertise. Understanding what each tax professional can do and how to choose the right one for your unique needs can help you decide how to move forward.
And if you’re looking for an experienced Enrolled Agent to handle your tax needs in West Palm Beach, let’s talk. The team at Nashville Tax Solutions is here to help you resolve your tax concerns.
Key Takeaways
- Both Enrolled Agents and tax attorneys play a critical role in our tax system.
- Enrolled Agents have specialized tax knowledge and federal licensure that allows them to work with clients across the country.
- Tax attorneys have the state licensure and legal experience needed to handle cases involving tax fraud and complex tax situations.
- Enrolled Agents can handle many of the most common tax issues and needs, including tax return preparation, audits, and payment options.
Understanding the Role of an Enrolled Agent
An Enrolled Agent is a federally licensed tax professional who is legally authorized by the IRS to represent taxpayers before the IRS. They have to pass a three-part Special Enrollment Examination and meet specific requirements regarding experience and education. They are the only tax professional who receives their license from the federal government directly, rather than being licensed at the state level.
In addition to qualifying via an initial examination, Enrolled Agents must complete at least 72 hours of continuing education every three years to maintain their licenses. Some of those hours must be related to ethics and conduct, highlighting the importance of the code of ethics and conduct that guides an Enrolled Agent’s work.
Enrolled Agents have unlimited practice rights before the IRS, so they can represent individuals, businesses, or any other taxpayers in audits, collections negotiations, appeals, the preparation and submission of tax documents, and other critical services.
When an Enrolled Agent Excels
Enrolled Agents are well-suited to the practical side of taxation. Here’s where an EA shines:
- Tax audits: Enrolled Agents are fully qualified to represent and support clients in IRS audits. Your EA will review your records, prepare the necessary documents, explain the risks you’re facing, and communicate with the IRS on your behalf.
- Tax preparation and planning: Whether you have a basic tax return or a complex tax return with a dozen extra forms, Enrolled Agents can prepare accurate tax returns while reducing your liability and staying compliant with all IRS regulations.
- Tax debt resolution: If you owe the IRS money, an Enrolled Agent can help you set up an installment agreement, submit a strong offer in compromise application, apply for penalty abatement, and look into currently not collectible status.
- Collections issues: When you find out that the IRS is planning on filing a federal tax lien, levying your assets, or garnishing your wages, your EA is your ally in protecting your assets. They will negotiate with the IRS to find an alternate resolution method that safeguards your assets.
- State tax matters: Although Enrolled Agents are federally licensed, many also help with state-level tax concerns. At Nashville Tax Solutions, Christopher Bennett helps taxpayers navigate issues with the Florida Department of Revenue as well as other state tax agencies.
Benefits of Choosing an Enrolled Agent
Enrolled Agents’ focus on tax law gives them the skillset needed to handle a wide range of tax needs, from routine filings and ongoing compliance to audits and unexpected penalties. In many situations, Enrolled Agents are a much more affordable option than tax attorneys. Their unlimited practice rights before the IRS give clients the chance to resolve multiple tax issues at one time.
Our clients enjoy the personalized service offered by Enrolled Agents. At Nashville Tax Solutions, we pride ourselves on getting to know our clients’ needs, exploring different resolution options, and finding solutions that fit their current and future needs.
Understanding the Role of a Tax Attorney
Tax attorneys are lawyers who have chosen to focus primarily or exclusively on tax law. They are licensed by the state bar, not the federal government. Their extensive training includes civil and criminal law, legal research and filings, and litigation. You’ll often find tax attorneys at firms that handle extremely complex or high-dollar tax issues.
When a Tax Attorney May Be Necessary
There are situations where a tax attorney’s legal background, licensure, and experience are important. This is especially true if your situation goes beyond tax filings, penalties, and payment options into criminal investigations or legal charges. Situations where you may want to turn to a tax attorney include:
- Complex tax litigation: If you are facing litigation against the IRS or another federal agency, a tax attorney is the right call. Enrolled Agents who are not also licensed attorneys cannot represent clients in tax court, unless they’re U.S. Tax Court Practitioners.
- Criminal tax matters: If your case involves fraud, evasion, or criminal investigations, you need a tax attorney. Even if you are innocent of what you’re being accused of, you need legal representation as soon as possible.
- Business formation and transactions with significant tax implications: Clients who are structuring a business to minimize tax liability, navigating mergers or acquisitions, or handling complex business agreements should consult a tax attorney. These transactions can have a significant effect on your taxes, and you want to ensure that every base is covered.
- Estate and trust tax issues: Clients with complex estate planning needs and tax matters often benefit from hiring a tax attorney.
| Key Difference | Enrolled Agent | Tax Attorney |
|---|---|---|
| Licensing | Licensed by the IRS | Licensed by the state bar |
| Primary Focus | Tax law and practical tax matters | Tax specialization and broad legal expertise |
| Scope of Practice | Unlimited IRS representation | All legal matters involving tax issues |
| Typical Cost | Typically lower than other tax services | Typically higher than other tax solutions |
| Common Areas of Assistance | Audits, collections, tax debt, IRS communication | Lawsuits, criminal cases, complex legal tax issues |
For most common IRS issues, an Enrolled Agent is well-equipped to handle your needs and help you find solutions. This includes audit representation, tax debt resolution, collection actions, and filing tax returns. However, if you are facing serious legal or criminal matters, you should turn to a tax attorney. This includes lawsuits, criminal tax cases, and complex legal tax issues.
To sum it up, choose an Enrolled Agent if:
- You need help filing back taxes
- You want to set up an installment agreement
- You’re being audited and want to be represented before the IRS
- You need help with wage garnishments or other levies
- You’re looking for affordable ongoing tax planning
- You’re facing collection actions but not criminal charges
Choose a tax attorney if:
- You’re under investigation for criminal tax fraud or evasion
- You are involved in litigation or tax court
- You’re handling complex estate and trust tax issues
- Your business tax situation has multimillion-dollar tax and legal implications
Why Choose an Enrolled Agent at Nashville Tax Solutions?
At Nashville Tax Solutions, we help individuals and businesses by providing personal, results-driven, and comprehensive tax assistance. Our team is led by Christopher Bennett, an Enrolled Agent with more than two decades of experience helping clients with tax resolution. He represents clients before the IRS and also provides assistance with Florida Department of Revenue issues. Our services include:
- Individual and business tax return preparation
- Filing unfiled tax returns to get back into compliance
- Tax debt resolution, including options like installment agreements and offers in compromise
- IRS audit representation
- Protection from collection actions
- Business tax guidance
We serve taxpayers nationwide, we have locations in the following areas:
Our team is proud to offer personalized local service with federal authority, providing you with the solutions you need to move forward – You can’t get that from the big tax relief firms. Although we’re based in Florida, we can provide tax services in any area of the country.
Contact Nashville Tax Solutions Today
If you’re struggling with a tax issue and you aren’t sure what your next step should be, get started with a free consultation from Nashville Tax Solutions. We’ll learn more about your concerns, explain your options, and give you the guidance you need.
You can call us at 855-627-4829 or locally at 615-502-2250, or contact us online to schedule a consultation at our West Palm Beach or Fort Pierce office.