Quick answer

  • Enrolled agents (EAs) are the IRS’s federally licensed tax practitioners who specialize in tax preparation, audit representation, and administrative negotiations with the IRS (appeal, collection, audit). See the IRS page on enrolled agents for credential details.
  • Tax attorneys are lawyers who can provide legal advice, develop litigation strategies, and represent clients in court when a matter escalates beyond administrative IRS processes.

Why this distinction matters

In my 15 years advising clients, choosing the wrong representative creates delays or missed defenses. EAs are ideal for documentation-driven audits and settlement negotiations. Attorneys become necessary if the IRS raises fraud, criminal investigation, or if you need courtroom representation.

When to hire an enrolled agent (EA)

  • The audit is an informational or compliance audit focused on missing receipts, math errors, or income-schedule mismatches.
  • You need help preparing documents, explaining transactions to an auditor, or negotiating an installment agreement or offer-in-compromise (administrative resolution).
  • Cost sensitivity: EAs typically charge less than attorneys for comparable audit representation, while still giving full IRS representation rights in administrative proceedings (per IRS rules on representatives).

When to hire a tax attorney

  • The IRS indicates potential criminal conduct, referral to IRS Criminal Investigation, or you receive a grand jury or criminal subpoena (see IRS Criminal Investigation resources).
  • The case involves complex legal issues — e.g., allegations of tax fraud, willful evasion, or complicated partnership/estate tax litigation.
  • You anticipate or need representation in court (U.S. Tax Court or federal court) where attorney advocacy and legal privilege may be critical. Note: court admission and rules vary by forum.

What each professional can and cannot do

  • Enrolled Agent: represent taxpayers before the IRS at audits, collections, and appeals; prepare and file tax returns; negotiate administrative settlements. (IRS: enrolled agent credentials)
  • Tax Attorney: all of the above plus legal counsel, litigation in court, and potential application of attorney-client privilege for communications.

How to choose — practical checklist

  1. Read the IRS notice carefully and note whether criminal language or referral is mentioned.
  2. Ask the auditor what they’re examining (documents only vs. intent/fraud). If the focus is intent, talk to an attorney.
  3. Get a written engagement letter with scope, fees, and estimated timeline.
  4. If cost is a concern, get an EA to handle the initial document response; switch to an attorney if the issue escalates.

What to expect in the engagement

  • Initial review: the practitioner will request documents, create a chronology, and assess exposure. (See our guide on Creating a Chronology for an IRS Audit Response.)
  • Communications: EAs generally handle all administrative contacts with the auditor; attorneys add legal arguments and privilege where appropriate.
  • Escalation: if the IRS moves to litigation or criminal referral, an attorney will usually take the lead.

Real-world examples (anonymized)

  • Routine income mismatch: An EA resolved a self-employed taxpayer’s audit by compiling bank statements and invoices and negotiating no change.
  • Potential criminal exposure: A client with large, unexplained cash deposits was referred to a tax attorney when IRS Criminal Investigation signaled possible fraud; the attorney coordinated defense and helped limit criminal exposure.

Costs and timing

Fees vary by region and complexity. EAs generally bill lower hourly rates for audit work; attorneys often charge more for legal strategy and litigation. Ask for estimates, retainers, and alternatives (limited-scope engagement, document review only).

Common mistakes to avoid

  • Waiting to hire a representative until after the auditor has issued a deficiency notice.
  • Assuming all tax pros have the same authorities—verify credentials and ask for prior audit experience in your industry.
  • Over-sharing sensitive information without discussing privilege with an attorney when criminal exposure exists.

Useful next steps

Authoritative sources and credentials

Professional note

In my practice I often start with an EA for document-driven audits and switch to counsel if legal risk appears. This hybrid approach can control costs while protecting rights.

Disclaimer

This article is educational and not legal advice. For advice about your specific case, consult a licensed tax attorney or enrolled agent with experience in IRS audits.