Finding an Enrolled Agent for Complex Tax Issues
Imagine running a successful business that has no trouble meeting its target metrics. You also have a passionate target demographic and a motivated team.
Overlooked tax obligations, then bring your success to a halt.
Money is strongly linked to mental health, and it’s imperative to handle your taxes appropriately no matter what classification you pay under.
While common tax issues are easy enough to overcome on their own, it’s recommended to work with tax services to handle complex problems.
Without the right tax solutions on your side, you risk making additional oversights and exacerbating your situation.
Let’s explore what you need to know about finding an Enrolled Agent who can guide you.
Check To Ensure They Are “Active” Enrolled Agents (AE)
It’s imperative to check to make sure they’re listed on the IRS website directory for Active Enrolled Agents.
Someone may say they are an Enrolled Agent, or maybe they were an Enrolled Agent and no longer are.
In addition, you can see if the business’s online reviews mention the support of an Enrolled Agent.
You can also ask for a reference that’s a past or existing client that you can talk to directly.
Keep an eye out for how they respond to your asking about their credential.
If they get defensive or aggressive, this is a red flag you should likely pay attention to.
Ask About Their Pricing
You typically get what you pay for when choosing tax services (and most things in life).
Ask about their pricing before making your decision so you can understand how they value their services (and if being the cheapest option is their goal this may be a red flag as well).
It’s not recommended to choose the most expensive service providers, though.
A company that lands somewhere in the middle of the price range can satisfy your needs.
You should also ask how they bill their clients.
Some services charge hourly, while others charge a flat fee.
Avoiding service providers that scale their compensation based on your tax return is advisable, as this is not common practice in the industry.
What Services Do They Offer?
The last thing you want is to hire a professional who doesn’t offer the services you require.
Reputable companies will properly advertise what they’re capable of.
This means you shouldn’t have trouble finding additional info on their website.
If you’re considering a particular service provider to assist with some of your more complicated tax issues, it’s worth reaching out to them to learn more.
This will illuminate areas of expertise they offer and help you understand what they’re capable of.
This information can come in handy if you have additional needs, and you can trust them to support you in other areas you are looking to get support with.
How Enthusiastic Are They?
Enthusiasm plays a large role in the results you’ll get.
Choose tax agents who are more than happy to help you overcome your problems.
If they don’t ask a handful of questions about your situation, chances are they may not have the attention to detail and level of care to meet your goals.
There’s even a chance they delegate your project to someone else at the firm who you’ve never met.
When to Hire an Enrolled Agent?
It’s imperative to understand when you should hire an enrolled agent.
Doing so will help guarantee you make the most of their services.
Listed below are some of the most common scenarios.
You Made a Mistake on Your Taxes
This is one of the most common reasons people choose to hire enrolled agents.
Fortunately, it’s a relatively easy fix for tax professionals.
They have the tools and resources to help you overcome problems like these and get back on track as soon as possible.
Your Taxes Are Overly Complex
Some people find themselves in tax situations they can’t handle on their own.
This is often true for people who trade crypto, claim unique deductions on their taxes, or have multiple or split residencies or income in other countries.
Enrolled agents can be a great resource you can use in scenarios like these.
You Own a Small Business
Small business taxes are inherently complicated. People who have recently started companies often don’t know how to navigate them.
Making a mistake can be costly and take years to resolve.
Knowing you have a team of tax experts, and access to an Enrolled Agent on staff often brings peace of mind when thinking about ‘just in case’ scenarios.
You’ve Had Major Life Changes
Cashing out major investments for receiving an inheritance can place you in an unfamiliar tax bracket.
The same can be said about getting a divorce or adopting a child.
An enrolled agent will help you demystify these situations and make the best decision for your needs.
You’ll likely save a substantial amount of money after hiring them, as well.
You Can’t Afford Your Taxes
If you can’t afford your taxes, the last thing you should do is accept your fate.
Enrolled agents can represent you when facing the IRS.
They’ll help negotiate better terms for your repayment and ensure you suffer as few penalties as possible.
Complex Tax Issues They Handle
Enrolled Agents can handle a large number of complex tax issues.
According to the IRS,
“An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants (CPAs), are generally unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.”
Most of these are fairly serious and require professional oversight.
Let’s explore them below.
Tax Fraud Accusations
Being accused of tax fraud is a crime that can have major penalties.
In some situations, it can result in jail time.
The way you handle your investigation plays a large role in its outcome.
Work with an Enrolled Agent so you can avoid making mistakes.
Tax Audits
While tax audits are rare, they’re a major headache to deal with.
Not only do they cause a substantial amount of stress, they can also be lengthy.
Your agent will help you handle this process as quickly as possible.
They can also represent you if criminal accusations arise.
Tax Levies
When the IRS imposes a tax levy, they continue to seize assets until they’ve acquired enough to cover your financial obligations.
This includes taxes you owe, penalties, and interest.
Hiring the right agent can help stop the tax levy and minimize the financial damage you incur.
Finding an Enrolled Agent can be Essential
Without a strategy for finding an Enrolled Agent, you risk making your tax situation even more complicated.
The info in this article is intended to help guide you to make the appropriate decision for your scenario and avoid pitfalls you may have otherwise encountered.
Master Accounting and Tax Service offers premier accounting, bookkeeping, tax, and fractional CFO services and we have an Enrolled Agent on staff.
We treat every client with dignity and respect, and we strive to continually learn more about our industry to provide better results.
You’ll gain more insight into how we can help when you book a consultation today.
For reliable tax services in Scottsdale, AZ, avoid complications by working with a firm that has an Enrolled Agent (AE) on staff. At Master Accounting and Tax Service, we specialize in providing top-tier accounting, tax, bookkeeping, and fractional CFO / controller services at an affordable cost and with the utmost integrity. Call (480) 456-4999 or Contact us today!
