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    IRS Income Tax Audit Types, Process, Tips, and Representation

    When to Use an IRS Agent

    When to Use an IRS Agent for Tax Problems

    Much in a similar manner to CPAs and tax attorneys, IRS enrolled agents are able to represent (via power of attorney), counsel, and prepare your tax returns. There are benefits that an enrolled agent has that are better than other tax professionals. Enrolled agents are more experienced in working with the IRS because they have either been employed by the IRS for at least five years or more in a position where they had to interpret and apply tax codes and their regulations, or they had to take a comprehensive examination that covered every aspect of tax code.

    IRS enrolled agent and privilege

    Enrolled agents are not offered the same privilege as tax attorneys. This privilege is often only limited to client privilege. Client privilege permits confidentiality between the taxpayer and enrolled agent, however only up to a defined point. Whereas this privilege does cover all situations where the enrolled agent is representing the taxpayer for audit or collection matters, it does not cover situations applied to criminal cases. During a criminal trial, an enrolled agent can be forced to testify against their client (the only one who retains their privilege in this matter is a tax attorney).

    The cost-effectiveness of enrolled agents

    Enrolled agents are the less expensive option, rather than utilizing the services of a CPA or tax attorney. It is worth it to consider an enrolled agent if you are trying to find assistance that is cost-effective.

    Enrolled agents are experts in the IRS

    Because enrolled agents are either required to have been employed by the IRS for a minimum of five years, or excel at a number of comprehensive examinations about the IRS tax laws, policies, and regulations, they are tremendously knowledgeable in all IRS proceedings. In fact, enrolled agents are the single type of professional tax specialists that obtain from the United States government their right to perform.