Tax Attorney vs CPA vs Enrolled Agent: Who Can Handle an IRS Problem
Attorneys, CPAs and enrolled agents may all practice before the IRS under Treasury Circular 230 (31 CFR § 10.3), and the IRS says all three can handle audits, collection and appeals. They differ in who licenses them, in privilege (26 U.S.C. § 7525 covers only noncriminal matters) and in U.S. Tax Court, where non-attorneys must pass the Court’s exam.
This guide sets out what the federal rules say each professional can do, how each is licensed, and the few places the rules treat them differently.
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Who may practice before the IRS
Treasury Circular 230 (31 CFR part 10) governs practice before the IRS, which § 10.2(a)(4) says includes “representing a client at conferences, hearings, and meetings.” Section 10.3 names attorneys, CPAs, enrolled agents, enrolled actuaries and enrolled retirement plan agents, if not “currently under suspension or disbarment.” Attorneys and CPAs file a written declaration that they are qualified and authorized; enrolled agents practice through IRS enrollment.
- Attorney: a “member in good standing of the bar of the highest court” of any state, territory, possession or the District of Columbia (§ 10.2(a)(1)).
- CPA: a person “duly qualified to practice as a certified public accountant” in one of those jurisdictions (§ 10.2(a)(2)).
- Enrolled agent: an individual “enrolled as an agent pursuant to this part” (§ 10.3(c)).
The IRS says all three “have unlimited representation rights before the IRS” and “may represent their clients on any matters including audits, payment/collection issues, and appeals.” Publication 947 adds that each may sign a consent to extend the assessment or collection period and a closing agreement. Enrolled actuaries and enrolled retirement plan agents are limited to the retirement plan matters in § 10.3(d) and (e).
How each professional is licensed
- Attorneys are “Licensed by state courts, the District of Columbia or their designees, such as the state bar.” The IRS says they generally hold a law degree and have passed a bar exam.
- CPAs are “Licensed by state boards of accountancy, the District of Columbia, and U.S. territories.” They have passed the Uniform CPA Examination and met education, experience and character requirements.
- Enrolled agents are “Licensed by the IRS.” The steps: get a preparer tax identification number (PTIN), pass all three parts of the Special Enrollment Examination within three years, apply on Form 23, and pass a suitability check covering tax compliance and criminal background.
Certain former IRS employees skip the exam. Under § 10.4(d) they need five years of continuous IRS employment applying the tax code and must apply within three years of leaving, and their enrollment “may be of unlimited scope or it may be limited.”
Enrolled agents renew every three years. Section 10.6(e) requires at least 72 hours of continuing education per three-year cycle, including six of ethics, and at least 16 hours each year. For attorneys and CPAs, the IRS ties eligibility to the state license, which Publication 947 says is lost “irrespective of the basis for the license revocation.”
Tax attorney vs CPA vs enrolled agent, side by side
Every cell below comes from the rules and IRS pages cited on this page.
| Rule | Tax attorney | CPA | Enrolled agent |
|---|---|---|---|
| Licensed by | State courts or designees, such as the state bar | State boards of accountancy | The IRS |
| Entry exam | Bar exam (generally) | Uniform CPA Examination | Special Enrollment Examination, or qualifying IRS employment |
| Circular 230 authority | § 10.3(a) | § 10.3(b) | § 10.3(c) |
| Audits, collection, appeals | Unlimited representation rights | Unlimited representation rights | Unlimited representation rights |
| IRS continuing education rule | Tied to state license | Tied to state license | 72 hours per three-year cycle (§ 10.6(e)) |
| Confidentiality named in § 7525 | The common law protection for attorney communications, which § 7525 uses as its measure | § 7525 privilege, noncriminal matters only | § 7525 privilege, noncriminal matters only |
| U.S. Tax Court admission | Application plus certificate of bar membership | Must pass the Court’s written exam | Must pass the Court’s written exam |
| Form 2848 Part II designation | (a), with state and bar number | (b), with state and license number | (c), with enrollment card number |
No official source compares cost, experience or results, so the table does not. Fees are covered in our guide to what an IRS tax attorney costs.
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Unenrolled preparers and how to check a credential
The IRS says any tax professional with a PTIN “is authorized to prepare federal tax returns.” Representation is different. A preparer who is not an attorney, CPA or enrolled agent has limited rights at most:
- For returns filed after December 31, 2015, only Annual Filing Season Program participants have limited practice rights, and only for clients whose returns they prepared and signed, before revenue agents, customer service representatives and similar employees, including the Taxpayer Advocate Service.
- They “cannot represent clients regarding appeals or collection issues even if they did prepare the return in question,” and cannot sign closing agreements, waivers or extensions of the statute of limitations.
- PTIN holders with no credential and no Record of Completion “have no authority to represent clients before the IRS” for returns after 2015.
The program is voluntary: 18 hours of continuing education, including a six-hour refresher course with a test, a renewed PTIN, and consent to Circular 230, Subpart B and § 10.51. The IRS then issues a Record of Completion.
Looking someone up
The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, linked from its Choosing a tax professional page, lists the name, city, state, ZIP Code and credentials of attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries with a valid PTIN, plus Record of Completion holders. To confirm enrolled agent status, the IRS says to use its Contact the Office of Enrollment form.
Privilege and criminal tax matters
Under 26 U.S.C. § 7525, “With respect to tax advice,” the “same common law protections of confidentiality which apply to a communication between a taxpayer and an attorney” also apply to communications with “any federally authorized tax practitioner,” meaning anyone authorized under federal law to practice before the IRS. The statute sets two limits:
- Noncriminal only. Under § 7525(a)(2), it “may only be asserted in” a “noncriminal tax matter before the Internal Revenue Service” and a “noncriminal tax proceeding in Federal court brought by or against the United States.”
- Tax shelters. Under § 7525(b), it does not cover a written communication “in connection with the promotion of the direct or indirect participation of the person in any tax shelter.”
The statute uses the common law attorney protection as its measure but does not define it.
When a matter turns criminal
IRS Criminal Investigation looks into “potential criminal violations of the Internal Revenue Code and related financial crimes.” A case can start when “a revenue agent (auditor), revenue officer (collection) or investigative analyst detects possible fraud.” A prosecution recommendation goes to the Department of Justice, Tax Division, or a United States Attorney, and after referral “the investigation is managed by the prosecutors.”
The § 7525 practitioner privilege does not reach a criminal matter. Form 2848 “will not be honored for any purpose other than representation before the IRS,” and no source used here says who may appear for a defendant in a federal criminal case.
U.S. Tax Court has its own admission rules
Tax Court Rule 200 requires every applicant to show “good moral and professional character.” Then the paths split:
- Attorney applicants file an application, a fee and a current certificate of good standing from the bar of the Supreme Court of the United States or the highest or appropriate court of a state or the District of Columbia.
- Applicants who are not attorneys, including CPAs and enrolled agents, must pass “a written examination given by the Court,” held “no less often than every 2 years,” with two sponsors already admitted and a character and fitness review.
Rule 200(f) says “Corporations and firms will not be admitted to practice or recognized before the Court.” Under Rule 24(b), “an individual may represent himself or herself.”
Authorizing a representative: Form 2848 vs Form 8821
For any of the three, Form 2848, Power of Attorney and Declaration of Representative, authorizes “an individual to represent you before the IRS,” and that person “must be eligible to practice before the IRS.”
- Part II. The form lists designations (a) through (r): (a) attorney, (b) CPA, (c) enrolled agent, plus others such as officer, employee, family member and unenrolled return preparer. The representative signs under penalties of perjury; attorneys and CPAs give their state and license number, enrolled agents their enrollment card number.
- Scope. Line 3 must list the matter, form number and years. The IRS returns a form that says “All years” or “All taxes.”
- Authority. The representative may “perform all acts” the taxpayer can for the listed matters, but may not endorse or negotiate a refund check. Authorizing someone “does not relieve you of your tax obligations.”
Form 8821, Tax Information Authorization, lets “any individual, corporation, firm, organization, or partnership” inspect or receive confidential tax information. The form says not to use it “to authorize someone to represent you.”
Publication 947 says corporations and partnerships “are not eligible to practice before the IRS,” and § 10.4(e) limits authorization to “natural persons,” so the representative on Form 2848 is an individual. See our guide to tax relief companies.
When an attorney matters
For audits, collection and appeals inside the IRS, the rules treat attorneys, CPAs and enrolled agents alike, and all three use the same Form 2848. Any of the three may handle a civil matter such as an IRS audit.
The rules differ in two places. In U.S. Tax Court, an attorney is admitted on proof of bar membership, while a CPA or enrolled agent must first pass the Court’s exam. In a matter with a criminal side, the § 7525 practitioner privilege does not apply and IRS-CI referrals go to federal prosecutors. Taxpayers in either situation often ask an IRS tax attorney to review the matter.
Frequently Asked Questions
Can a CPA or enrolled agent represent me in an IRS audit?
Yes. The IRS says enrolled agents, CPAs and attorneys have unlimited representation rights and may represent clients on any matters, including audits, payment and collection issues, and appeals.
Is an enrolled agent the same as a CPA?
No. An enrolled agent is licensed by the IRS after passing the three-part Special Enrollment Examination or through qualifying IRS employment. A CPA is licensed by a state board of accountancy after passing the Uniform CPA Examination. Both have unlimited representation rights before the IRS.
Are conversations with a CPA or enrolled agent privileged?
In part. Under 26 U.S.C. § 7525, tax advice from a federally authorized tax practitioner gets the same confidentiality protection as attorney communications, but only in noncriminal tax matters and proceedings, and not for written communications promoting a tax shelter.
Can a CPA or enrolled agent represent me in U.S. Tax Court?
Only after being admitted by the Court. Tax Court Rule 200 requires applicants who are not attorneys to pass a written examination given by the Court. An individual taxpayer may also represent himself or herself.
What is the difference between Form 2848 and Form 8821?
Form 2848 authorizes an individual who is eligible to practice before the IRS to represent you. Form 8821 lets a person or organization inspect or receive your confidential tax information, but it does not authorize representation.
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Ray Neu
Ray Neu is the publisher of IRSAttorneys.net. A former law enforcement officer with a background in criminal justice and digital publishing, he oversees editorial direction, partnership standards, and compliance review for the site. He is not an attorney and does not provide legal advice; all tax law content is sourced and reviewed against the standards documented on the Editorial Team & Standards page.
Sources
- 31 CFR § 10.2
- 31 CFR § 10.3
- 31 CFR § 10.4
- 31 CFR § 10.6
- IRS: Understanding tax return preparer credentials
- IRS: Enrolled agent information
- IRS: Become an enrolled agent
- IRS: Verify an enrolled agent
- IRS: Annual Filing Season Program
- IRS: Choosing a tax professional
- IRS Publication 947
- IRS: Instructions for Form 2848
- IRS Form 2848 (PDF)
- IRS: About Form 8821
- IRS Form 8821 (PDF)
- 26 U.S.C. § 7525
- IRS Criminal Investigation
- IRS: How criminal investigations are initiated
- U.S. Tax Court Rule 200 (PDF)
- U.S. Tax Court Rule 24 (PDF)
- U.S. Tax Court: Practitioners
IRS Circular 230 Disclosure: To ensure compliance with Treasury Department rules governing tax practice, any tax information contained on this website was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty. You should consult a licensed tax professional regarding your individual situation.
Results described on this website are not a guarantee, warranty, or prediction of the outcome of any tax matter. Every situation is different. Prior results do not guarantee a similar outcome. Article content reflects general information about federal tax procedure as of the last reviewed date and may not reflect subsequent changes in IRS policy, regulations, or case law.