Independent buyer's guide · 52 chapters
Hiring tax help? Check the label first.
Who is allowed to represent you, what the work should cost, which sales lines are red flags, and what the FTC has done about tax relief companies. Written plainly by a tax attorney who will tell you when you do not need to hire anyone.
Red flags at a glance
Full fee demanded up front
The FTC tells consumers to walk away from any tax relief company that wants its full fee paid in advance.
A promised result
The FTC's own words: no company can promise a particular result.
"You qualify" on the first call
Only the IRS or your state decides whether you qualify for a program.
Pennies on the dollar
The IRS lists aggressive offer in compromise marketing on its 2026 Dirty Dozen scam list.
Pay us, we will pay the IRS
IRS payments go to the U.S. Treasury. Circular 230 bars practitioners from routing your refund checks into their accounts.
Comparison
Who can represent you?
The IRS sorts tax professionals by representation rights, not by advertising budget. This is the short version of Circular 230, the IRS credential rules, and Tax Court Rule 200.
| Attorney | CPA | Enrolled agent | AFSP preparer | PTIN-only preparer | |
|---|---|---|---|---|---|
| Licensed by | State supreme court or bar | State board of accountancy | The IRS | Voluntary IRS program record | No credential |
| Audits, collection, appeals | Unlimited | Unlimited | Unlimited | Limited: own returns, exam level only | None for returns after 2015 |
| U.S. Tax Court | Admitted on application | Must pass the Court's exam | Must pass the Court's exam | Must pass the Court's exam | Must pass the Court's exam |
| Bound by Circular 230 | Yes | Yes | Yes | Yes, by consent | Yes, as a preparer |
Full details: Circular 230 explained · Attorney vs. CPA vs. EA
Start here
All 52 chaptersThe Hiring Decision
When Do You Actually Need a Tax Attorney?
The honest sorting: situations that genuinely need a lawyer, situations a CPA or EA handles fine, and situations you can run yourself.
Credentials
Circular 230: Who Is Actually Allowed to Represent You Before the IRS
Treasury Department Circular 230, codified at 31 CFR Part 10, lists who may practice before the IRS and the rules they must follow. Attorneys, CPAs and enrolled agents have full practice rights. Most of the people on a tax relief sales floor have none.
The Hiring Decision
How Much Does a Tax Attorney Cost?
Fee structures, realistic ranges by engagement type, what drives the price, and the math of when counsel pays for itself.
Scams and Enforcement
What the FTC Has Done About Tax Relief Companies, and What It Teaches Buyers
The FTC called its 2010 case against American Tax Relief LLC its first action against a tax relief company. In 2025 it sued American Tax Service operators with the State of Nevada. The allegations repeat: promises to settle for a fraction of what is owed, "you qualify" before any review, large upfront fees, and in the newer case, impersonating the government.
Scams and Enforcement
Offer in Compromise Mills: The IRS Warning, Decoded
The IRS's 2026 Dirty Dozen list warns that offer in compromise mills often overpromise results and charge high fees to taxpayers who do not qualify. The IRS gives you a free Pre-Qualifier tool. In fiscal year 2025 it accepted 5,464 offers. Test any pitch against the IRS's own rules before you pay.
Working With a Representative
What Tax Representation Actually Does, Day to Day
Representation is concrete work. Your representative files a power of attorney, pulls your IRS records, gets you compliant, builds the financial statement, talks to the IRS so you do not have to, negotiates the resolution, and tells you the truth about your options. If you cannot see that work happening, ask why.
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Ask every question on the checklist, including whether you need to hire anyone at all. The first conversation is free.