By Jon Call, EA • Enrolled Agent & NTPI Fellow • CLAW Tax Group
Hiring help with the IRS means trusting someone with your records and your case. You also give them the right to speak for you. Whether a firm is local or national is less important than who will do the work and whether you can check them first.
Short answer
What matters is who actually handles your case. Attorneys, CPAs, and Enrolled Agents all have unlimited practice rights before the IRS, so a local firm and a national company can both represent you. Before you sign, get the name and credential of the person signing your Form 2848, check it, and ask who handles Minnesota Revenue. Walk away from anyone who promises a result before reviewing your finances.
Key Takeaways
- Form 2848 names people, not companies. The IRS says you “may only name individuals who are eligible to practice before the IRS as representatives.”
- Attorneys, CPAs, and Enrolled Agents have unlimited representation rights before the IRS. A preparer with only a PTIN generally has no authority to represent you.
- You can check credentials yourself before you sign.
- Minnesota Revenue needs its own power of attorney, Form REV184i or REV184b.
- The FTC and the IRS both warn about early promises and “pennies on the dollar” pitches.
What really differs between a local firm and a national company
The bigger differences are who works your file, whether you can reach them, and whether the state side gets handled too.
| Question | Local firm | National company |
|---|---|---|
| Who you talk to | Ask: will I speak with the person named on my Form 2848? | Same question. Also ask who takes over after you sign. |
| Who signs Form 2848 for you | An individual eligible to practice before the IRS. Ask for the name and credential. | Same rule. A company name cannot go on the form. |
| Minnesota Revenue matters | Ask: will you file Form REV184i or REV184b for the state? | Same question. Revenue also accepts Form 2848 when a Minnesota tax type or form is listed in section 3. |
| Meeting in person | Ask whether meetings are by appointment, and where. | Ask whether there is an office you can visit. The IRS says you need not attend with your representative unless formally summoned. |
| How to verify | Use the credential checks below. | The same checks, for each person who will work your file. |
Questions to ask any firm before you sign
- Who will sign my Form 2848? The Form 2848 instructions say each representative signs Part II and lists a license, certification, or enrollment number.
- Can I talk to that person directly? You should know who is speaking for you to the IRS, and be able to reach them.
- What did you review before telling me my options? The IRS says taxpayers must make an offer “based on their true ability to pay,” so a firm should look at your income and expenses first.
- Can you add other representatives? Not without your written permission or a box checked on line 5a.
- Can I get the plan in writing? Ask for a written summary of what the firm will do and what it will file for you.
- When would you bring in an attorney? A good firm can tell you exactly when.
Check credentials yourself
- IRS directory. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications lists attorneys, CPAs, and Enrolled Agents with a valid PTIN. Updates can take up to four weeks, so if a name is missing, ask why.
- Enrolled Agents. Verify an Enrolled Agent through the IRS Office of Enrollment contact form and choose “I am requesting information about an enrolled agent.”
- Minnesota attorneys. The Minnesota Supreme Court’s lawyer search shows current status and admission date.
- Minnesota CPAs. The Board of Accountancy’s Find a CPA tool lets you search by last name or certificate number to confirm whether a person holds a current Minnesota CPA license.
- Minnesota Revenue. Anyone on Revenue’s Ineligible Tax Professional List cannot represent you before the department.
Red flags the FTC and IRS warn about
- “You qualify” before anyone looks. “Only the IRS or your state comptroller can decide what you qualify for,” the FTC says.
- Pennies on the dollar. The IRS warns about businesses that “make huge claims about reducing unpaid taxes for pennies on the dollar” and push offers “even though the taxpayer won’t qualify.” You can check your own eligibility with the IRS Offer in Compromise screening tool.
- Guarantees. The IRS says applying for an offer “does not guarantee that the IRS will accept the taxpayer’s offer.” Be wary of anyone who says otherwise.
- Nothing actually filed. The FTC says some of these companies “don’t even send your paperwork to the IRS to apply for programs to help you.” Ask for a copy of everything filed for you.
- Other customers’ results. The FTC says to be skeptical of claims about other customers’ experiences, because “no company can promise a particular result.”
Be skeptical of results claims from any firm, ours included. That does not make the Offer in Compromise a gimmick. It is a real IRS program, and it exists for a reason. The IRS says an offer “may allow you to settle your tax debt for less than the full amount you owe if you can’t pay in full or doing so would cause financial hardship.” Not everyone qualifies. The IRS generally will not accept an offer if you can pay the debt in full through a payment plan or the equity in your assets. If you do qualify, an offer is worth pursuing, but only after someone has reviewed your finances and can explain why you qualify. That is why vetting your representation matters.
What a national company can do well
Being national is not a red flag by itself. The IRS says Enrolled Agents, like attorneys and CPAs, are unrestricted as to “which IRS offices they can represent clients before.” A credentialed representative at a national company can handle a Minnesota taxpayer’s IRS file. A larger company may have more staff or longer phone hours, and that can matter.
Local is not automatically better, either. Every warning above applies to a firm down the street as much as one across the country. Ask us the same questions.
The Minnesota side of the decision
If you owe Minnesota too, Revenue’s power of attorney page lists Form REV184i for individuals and sole proprietors and Form REV184b for businesses. Revenue can suspend a representative who “does not demonstrate adequate familiarity with state tax laws and rules.”
How our team works
Our team is made up of Enrolled Agents, plus our tax attorney for cases that need one. Our Enrolled Agents have the same unlimited IRS practice rights as attorneys and CPAs. Once you sign the forms, our team takes over communication with the IRS, including phone calls and notice letters. We work the Minnesota account too, because fixing an IRS balance does not close a Minnesota balance.
We represent taxpayers in all 50 states, so most of our clients never meet us face to face, even here in Minnesota. People are busy, and most of the work and communication happens by phone, email, and text. In person meetings are by appointment only at our office at 4525 White Bear Parkway, Suite 223, White Bear Lake. See our pages on Minnesota Revenue, Currently Not Collectible status, and IRS levies.
When you need an attorney
Some matters need an attorney from the start. Warning signs include possible fraud, a criminal investigation, or a case headed to court. If your case involves possible criminal exposure, our tax attorney, Matthew Wildes, JD, CPA, steps in.
Related reading: tax attorney vs Enrolled Agent vs CPA and how to choose a tax resolution firm.
Common questions
Is a local tax firm better than a national tax relief company?
Not automatically. Attorneys, CPAs, and Enrolled Agents have unlimited practice rights before the IRS wherever they work. Judge any firm by who signs your Form 2848, whether you can reach that person, whether they handle Minnesota Revenue, and whether they review your finances before promising anything.
Who actually signs Form 2848?
You sign Part I. Each representative signs Part II and lists their designation, licensing jurisdiction, and license or enrollment number. The IRS says you may only name individuals who are eligible to practice before the IRS, so a company name cannot go on the form.
How do I verify a tax professional’s credentials?
Start with the IRS directory of credentialed tax professionals. Confirm an Enrolled Agent through the IRS Office of Enrollment, a Minnesota attorney through the Minnesota Supreme Court lawyer search, and a Minnesota CPA through the Board of Accountancy. Then check Minnesota Revenue’s Ineligible Tax Professional List.
Should I choose a local or national firm for Currently Not Collectible status?
Choose whoever will take the time to get your finances right. The IRS says that in Currently Not Collectible status you still owe the full amount, and it may file a Notice of Federal Tax Lien. If you also owe Minnesota, ask who will handle Revenue.
Should I hire a tax attorney or a tax relief company for an IRS bank levy?
Whoever you hire, act quickly. The IRS says a bank levy comes with a 21 day waiting period, meant to give you time to contact the IRS. An Enrolled Agent, CPA, or attorney can represent you on the levy. An attorney should lead if there is possible fraud, criminal exposure, or a case headed to court.
Do I need to meet my tax representative in person?
Usually not. The IRS says taxpayers who hire a representative do not have to attend with them unless the IRS formally summons them. Most of our clients never meet us face to face, even in Minnesota, because most of the work happens by phone, email, and text. If meeting in person matters to you, ask before you sign. Our team meets by appointment at our White Bear Lake office.
Who works my case, an Enrolled Agent or an attorney?
Our Enrolled Agents have unlimited practice rights before the IRS, the same as attorneys and CPAs. If your case involves possible criminal exposure or is headed to court, our tax attorney steps in.
Talk to our team
Want to put these questions to us? Call or text (651) 323-2255 for a free consultation, or use our contact page. Bring your IRS and Minnesota notices. We will tell you who would handle your file and what we see, before you commit to anything.