Do I Need a Tax Attorney or Would an Enrolled Agent Be Able to Help?
Most people assume that when they have a serious tax problem, they need a tax attorney. In reality, that’s not always the case - and choosing the right type of help can save you a significant amount of money and stress.
In Ohio, many tax issues can be handled effectively by an enrolled agent (EA). But there are certain situations where a tax attorney is the right call. Understanding the difference can help you make a smarter decision.
When an Enrolled Agent Is the Right Choice
For most tax situations, an enrolled agent can handle everything you need. EAs are federally licensed to represent taxpayers before the IRS and are often the most practical option for resolving tax problems.
An enrolled agent can help with:
- Filing back tax returns
- Setting up IRS payment plans
- Submitting an Offer in Compromise
- Handling IRS audits
- Resolving payroll tax issues
- Creating tax strategies for self-employed individuals and small business owners
For most Ohio taxpayers dealing with IRS notices, state tax balances, or local tax issues (like RITA), an enrolled agent is more than capable of handling the situation from start to finish.
When You Should Consider a Tax Attorney
There are times when a tax issue becomes more than just a financial problem—it becomes a legal one. That’s when a tax attorney is necessary.
1. You’re Facing Criminal Tax Issues
If your situation involves tax fraud, tax evasion, or any form of willful noncompliance, you should speak with a tax attorney immediately. These cases carry potential criminal consequences, and legal protection matters. A key difference is that attorneys provide attorney-client privilege in criminal matters, which protects your communications. That level of protection does not apply in the same way with an enrolled agent.
2. You’re Under IRS Investigation
If you’ve been contacted by IRS Special Agents or believe you’re under investigation, this is no longer routine tax resolution. You’ll need legal representation to protect your rights.
3. Your Case Is Going to Tax Court
While enrolled agents can represent you before the IRS, they do not represent clients in court. If your case escalates to U.S. Tax Court or another federal court, a tax attorney is the appropriate choice.
4. You Need Legal Structuring or Asset Protection
Some situations go beyond tax preparation and into legal strategy. This includes complex business structuring, asset protection planning, or disputes involving business partners or ownership.
5. You’re Dealing with High-Risk or High-Dollar Issues
If your situation involves large tax debts, offshore accounts, or complicated financial structures, a tax attorney may be necessary to manage both the tax and legal implications.
A Simple Way to Decide
If you’re not sure which direction to go, here’s a practical way to think about it:
- If your goal is to fix a tax problem, an enrolled agent is usually the right place to start.
- If your situation involves legal risk or potential criminal exposure, a tax attorney is the better choice.
What Most People in Ohio Actually Need
The reality is that most taxpayers do not need a tax attorney. They need someone who understands how to work with the IRS, reduce penalties where possible, and put together a realistic plan to move forward. That’s where an experienced enrolled agent can make a big difference - especially for contractors, consultants, and real estate professionals who may have more complex tax situations.
Start with the Right Conversation
If you’re dealing with a tax issue and aren’t sure what level of help you need, it’s often best to start with an enrolled agent. If your situation requires legal support, you can be guided in the right direction without taking on unnecessary expense from the beginning.
If you’d like to talk through your situation and get a clear path forward, reach out to Ken-Mar Tax. You’ll get straightforward guidance and help determining the best next step.
Small Business Tax Services
As an expert in small business tax services and tax consulting Ken-Mar Tax eats, sleeps and breathes small business tax strategies. Being an enrolled agent allows founder, Ken Weinberg, to represent you to the IRS - something only a CPA, tax attorney and Enrolled Agent can do. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. It also means he is continuously being updated on the new IRS tax codes and taking classes from the IRS that provide guidance on how to file returns so that they are not "flagged."
When you get your taxes prepared by Ken Mar Tax you also have the option to purchase the Tax Audit Protection Plan to avoid the extra costs of paying for audit representation. If you are audited by the IRS, State of Ohio or local taxing authorities, Ken-Mar Tax will meet with the taxing authorities on your behalf to negotiate a settlement for you. The fee covers all costs up to the Appeals level, including up to 15 hours of correspondence with the auditing party – either the IRS, State of Ohio or locality.
