How To Choose The Best Tax Pro To Resolve Back Taxes

Why Should I Hire A Tax Pro To Help Resolve My Back Taxes?

Back taxes are no joke. Plenty of Americans find themselves owing the IRS exorbitant amounts of back taxes each year. Hiring a tax attorney might seem like the most efficient solution to your tax problems. However, the tax law is more complicated and intense than the average American may believe. Therefore, it is important to do your research and carefully consider your options before hiring a tax professional. In order to achieve optimal results, it is imperative that you choose the tax professional best suited to your needs!

What Are The Different Types Of Tax Professionals?

There are many different types of tax professionals to choose from when dealing with back taxes. Many individuals believe a tax attorney will best resolve their debt. However, that is not necessarily always the case. Think of it this way-- you wouldn't hire an Italian chef to make sushi, right? So why would you hire a tax pro who doesn't specialize in tax resolution to resolve your back taxes?

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Tax Attorneys

A tax attorney is a professional who has licensed to practice law. Tax attorneys, or tax lawyers, must pass their state bar exam to practice. Tax attorneys typically specialize in transactional tax planning rather than tax resolution. They generally specialize in reducing taxes on a "moving forward" basis and can represent taxpayers in federal tax court. However, this situation is not typical.  Tax attorneys primarily provide taxpayers with services such as:

  • Business and entity formation
  • Help with corporate tax matters (i.e. legal tax advice)
  • Help with complex or criminal tax issues

Enrolled Agents

An Enrolled Agent is a federally licensed tax professional who represents taxpayers dealing with the IRS. In order to become an Enrolled Agent, individuals must pass the necessary exams as well as earn the proper credits. The EA exam is a detailed evaluation that tests applicants on the rigorous tax code. Therefore, EAs are well-equipped to handle IRS and tax disputes for both individuals and businesses. Enrolled agents are the only tax professionals (besides IRS officials) who have earned the privilege to practice directly through the U.S. Treasury! Typically, EAs provide taxpayers and businesses with assistance in:

  • State and tax liens
  • IRS appeals and collections
  • Back tax settlements
  • Delinquent unfiled tax returns

CPAs

A CPA is a state licensed certified public accountant who must pass an extensive sate exam administered by the AICPA. The average CPA specializes in tax preparation and works with taxpayers to minimize their tax bill and maximize their refund. Additionally, CPAs also assist clients with a broad range of financial services. These services typically include:

  • Accounting services
  • Financial consulting for businesses and individuals
  • Financial planning

Which Tax Professional Should I Hire To Help With Back Taxes?

Many tax professionals can help taxpayers resolve back tax debt. However, you must do your research an understand the difference between the various professionals. Tax professionals who have had experience dealing with the specific IRS code are more likely to achieve your desired results.

However, enrolled agents are the best equipped professional to handle back tax negotiations. Enrolled Agents are specially trained to negotiate with the IRS on your behalf. Cases regarding back taxes must be resolved through the IRS administrative process. Therefore, it is in your best interest to seek the counsel of a tax pro who is well versed in the IRS tax code and Internal Revenue Manual.

Let The Tax Pros At Lifeback Tax Help Resolve Your Back Taxes!

Tax authorities require representatives to be licensed as a CPA, attorney or Enrolled Agent in order to provide their services to taxpayers. However, the licenses among these tax professionals cover a broad range of tax services. Taxpayers struggling with back taxes should look to established tax firms with CPAs, attorneys and EAs on staff!

At Lifeback Tax, our staff includes CPAs, attorneys and EAs. We work together in order to exhaust every option possible for our clients. We specialize in tax relief, therefore every staff member is trained rigorously on the tax code and IRS negotiations. We also service clients in all 50 states as we have staff certified on both state and federal levels! If you're being weighed down by the burden of debt, look no further. Call us today at (855) 605-1500 for your FREE first consultation, no obligation required.


Rajneet Kaur, EA, MBA, Certified Tax Resolution Specialist is the Company Director of LifeBack Tax. LifeBack Tax is a tax resolution firm based in Chatsworth, CA that specializes in determining structured solutions for clients who owe back taxes to the state or IRS. With over 16 years of experience in the industry, Rajneet and her team have been able to resolve state and IRS debts for countless clients across the nation! We service all 50 states. To get in contact with Rajneet and the LifeBack team, call (855) 605-1500 or send us an e-mail to [email protected]