What are the Benefits of Utilizing an Enrolled Agent
To Help You With IRS Penalties & Back TaxesAn enrolled agent can be a very cost effective way to resolving issues with IRS back taxes and penalties. Often consumers find that by trying to clear up IRS problems themselves that there is far more time and effort put into learning what to do which can take time away from your everyday challenges. I'm not saying you shouldn't try to understand the procedures, it's important that you do but, as stated above, a professional can save time and money. This type of tax professional is a federal tax practitioner who is empowered by the department of treasury. They are authorized to represent tax payers before all administrative levels of the IRS for audits, collections, and appeals.
Here are some of the benefits to using this type of professional over a tax attorney or CPA.
- Limited client privilege. Meaning that for most part, they could not be forced to testify against you. The only way they can be forced to testify against you about is if you are being brought up on criminal tax charges related to your tax issues.
- Another benefit to hiring an enrolled agent over a CPA or tax attorney is the price. CPAs and tax attorneys generally charge about double the amount that an enrolled agent will charge. They are usually more cost effective at dealing with audits, filing back taxes, basic collections and appeals.
- Enrolled agent tax professionals have a good amount of experience dealing with the IRS. To become one, they must work for the IRS for 5 years or pass a series of examinations. This ensures the superior knowledge of an enrolled agent in streamlining the tax issue process.
The best advise from me to you is, if your in a tax issue situation, visit an enrolled tax advisor for a consultation and, take your list of questions with you.
Taking the time to interview with an enrolled agent and asking the proper questions will help you decide if hiring and agent is the best way for you to go.
Depending on your tax situation it can be very smart to hire an enrolled agent over other types of tax professionals. Most tax professionals offer a free consultation and price estimate. Tax advantage of free consultations, and you will be able to find the best solution at a good price.
It is always a good idea to receive multiple consultations and quotes since each tax professional uses a different method and specializes in different areas when it comes to help with back taxes and IRS issues.