When you’re dealing with IRS notices, back taxes, or an audit, a tax resolution specialist can be the right professional to call — but not every firm advertising these services is equally qualified. Knowing how to evaluate them protects both your wallet and your legal standing.
What Is a Tax Resolution Specialist?
Tax resolution specialists help taxpayers address problems with the IRS or California Franchise Tax Board, including unpaid balances, levies, liens, and audit defense. They may be CPAs, Enrolled Agents, or tax attorneys. Only attorneys, CPAs, and enrolled agents can represent you before the IRS in all matters, including audits, collections, and appeals. Other tax return preparers who participate in the IRS Annual Filing Season Program have limited practice rights to represent you only in audits of returns they prepared and signed. Registered tax return preparers may represent you before revenue agents and similar IRS employees during an examination of a return they signed, but not before appeals officers or revenue officers under Circular 230 §10.3(f). Enrolled actuaries and enrolled retirement plan agents can represent you only on specified retirement plan issues under Circular 230 §10.3.
Key Credentials to Verify
- Enrolled Agent (EA): Licensed by the IRS, with unlimited representation rights. Verify at the IRS website using the EA search tool.
- CPA: Licensed by the California Board of Accountancy. Verify at dca.ca.gov/cba before any engagement.
- Tax Attorney: Licensed by the California State Bar. Check calbar.ca.gov for active standing.
Red Flags When Hiring for Tax Resolution
- Promises to “settle for pennies on the dollar” with no review of your situation — only an IRS determination can establish an Offer in Compromise eligibility
- Upfront fees in the thousands before any work begins
- No verifiable credentials or refusal to share their PTIN
- Pressure to sign a power of attorney (Form 2848) immediately
- No written fee agreement before representation begins
Questions to Ask Before Hiring
Ask any prospective tax resolution professional: What is your specific experience with cases like mine? Will you personally handle my case or hand it to junior staff? Can you provide references from past resolution cases?
California residents should also confirm the professional is familiar with FTB procedures, which differ significantly from IRS processes. California has its own installment agreement and offer-in-compromise programs.
Where to Find Qualified Professionals
The National Association of Enrolled Agents (naea.org) and the California Society of CPAs (calcpa.org) maintain directories of credentialed professionals. Referrals from a trusted CPA or attorney are also reliable starting points.
Official sources referenced: IRS.gov, California Board of Accountancy (dca.ca.gov/cba), California Franchise Tax Board (ftb.ca.gov). Not reviewed by a credentialed tax professional.