Remember the ladder concept:
It's like the ladder principle. Somebody is on the bottom of the ladder, a lot of people are somewhere in the middle, and some are at the top of the ladder.
Seasonal tax prep outfits are at the bottom
At the bottom of the ladder are the seasonal tax preparation firms. Among these are H&R Block and Jackson-Hewitt. The do-it-yourself software programs, like TurboTax, also fall at this first rung of the ladder.
Enrolled Agents -- second rung of the ladder
Next up the ladder are Enrolled Agents. According to the IRS, "An enrolled agent is a person who has earned the privilege of practicing, that is, representing taxpayers, before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants (CPAs), are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before."
The basic problem with Enrolled Agents is that they are not required to have any specialized training or education beyond the IRS study program. You may be represented by someone with nothing more than a high-school diploma and no collegiate training at all. Hiring an Enrolled Agent can be a gamble. If you re not savvy enough to know the difference, you better keep on climbing the ladder.
Certified Public Accountants -- another step up the ladder
Continuing up the ladder we encounter the first truly professional level, that of the Certified Public Accountant (CPA) which is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA. In California a Bachelors degree from an accredited college or university is required.
Attorneys at Law -- at the top of the ladder
On the top of the ladder you will find attorneys at law who are tax specialists. Many tax law firms employ CPA's and oftentimes Enrolled Agents, but they work under the supervision of a licensed attorney at law. Attorneys at law are true professionals who have a four-year university education behind them plus another 4 years of law school on top of that. Working as a lawyer involves the practical application of abstract legal theories and knowledge to solve specific individualized problems, or to advance the interests of those who hire attorneys (lawyers) to perform legal services. The practice of law is substantially more intricate and demanding than any other the lower rungs of the ladder. Attorneys earn a Bachelors degree in addition to a Doctorate degree in law, the degree of Juris Doctor (J.D.)
Don't get burned or under-served:
If you have tax problems or other serious financial challenges, do yourself a favor and make sure you get the highest quality advice and help available -- and that will come to you only from an attorney at law. Don't be fooled by non-attorney businesses that try to help.
The cost is usually about the same to hire an attorney as it is to hire someone with lesser credentials. The fees charged by most tax attorneys are about the same or close to those of CPA firms or Enrolled Agents.
Most attorneys will grant a free consultation during which time you can meet and talk to an attorney free of any charge. The attorney will answer your questions, provide the legal advice you need, let you know what your options are, and suggest a strategy to you.
The State Bar of California
Created by the state legislature in 1927, the State Bar is a public corporation within the judicial branch of government, serving as an arm of the California Supreme Court. All State Bar members are officers of the court.
Membership in the State Bar of California affords attorneys the right and privilege of practicing law in this state. The bar's integrated network of functions and services — many of them mandated by law — protects the public and assists attorneys in meeting their professional obligations.
Make sure you speak only to an attorney at law who is in good standing with the State Bar. They have a search box on the web site. Enter the attorney's name in the search box provided under "Attorney Search"
Finding a tax attorney
The Bar Association of San Francisco offers a lawyer referral service
In other areas of California please go to your county bar association or use the statewide lawyer referral service provided by the California State Bar.
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