Can one switch from an EA to a CPA during an IRS audit?

I know of no reason why she could not do this. But... . why? An Enrolled agent who is engaged to represent a client at audit should be chosen because he is, as an EA, qualified to perform such representation. And that is why we carry the designation, EA, because we do know ins and outs of representation work. Why would it be advisable to change horses in the middle of the stream? Real point is this. choose either an EA OR a CPA because that person is completely qualified to represent you to the bitter end. ChEAr$, Harlan Lunsford, EA n LA Wed 9 Mar 2005

She sure can, even a Qualified tax Attorney could be consulted, think of it as getting a second or third opinion, so long as she's will to pay all three professionals for their efforts, if her lack of confidence in the EA is just, then a second opinion should be sought. If the issues are clear cut (in favor of the IRS) but your daughter refuses to see the reality, she is ~possibly~ wasting her money. Sometimes this is viewed as opinion shopping, or delay of action strategy, it can be disquieting for all parties when representation keeps changing. Audits & Collection actions tend to move in a clock work like rhythm. If key deadlines for appeals opportunities are missed, due to jumping horse mid stride she might create more problems than facing the music as advised by the initial EA's advice to her.

You are implying that an EA is somehow less qualified to deal with some issue before the IRS than a CPA. EAs are licensed by the federal government based solely on their knowledge of taxation. CPAs are licensed by the states based on their broad knowledge of accounting topics including taxation, financial accounting, cost accounting, and auditing. Attorneys can also represent you, again they are licensed by the states based on their broad knowledge of the law, which includes some tax law. Can an Attorney or CPA specialize in taxation, of course. Are all attorneys and CPAs tax experts, of course not. Any CPA, Attorney, or Enrolled Agent can handle any issue before the IRS and their individual experience and knowledge of tax law is what is important, not the letters after their name.

Although one could do that, it's not a good idea to change representatives in the middle of an audit. For one thing, the IRS might conclude the taxpayer is just trying to put off paying taxes for as long as possible.

That's fine.

Why would she want to do that? What points is your daughter concerned about? Keep in mind that simply disagreeing the the IRS auditor doesn't mean she is correct or that she would prevail no matter who her representative is.

Why would she want to do that? (Change to a CPA that is - of course she can direct her representative to proceed with an administrative appeal if she wants to spend the money.) What is it that makes you think your daughter would be better off with a CPA than with an EA? If that is what you (or she) believes, why not start with a CPA?

Yes. Encourage your daughter to engage the best EA or CPA possible, provide that tax professional with all the facts, and stay home while the tax pro does his or her job.

Changing representatives? It probably doesn't happen once in

A wise choice. Many Enrolled Agents are in the business of representing taxpayers in audits before the IRS. In fact, you do realize that this is what an EA does? I would presume that she and the Enrolled Agent have gone over those records to identify any problems that may come up. There should be no surprises about what issues will be discussed during the audit, and what information will be presented during the audit.

She is able to change her representative at any time. However, it seems that just at the time that the IRS is making a decision on the case would be a poor time to decide to stop and change representatives. It would seem to me that if the IRS were "making a big deal" about something, you would want the assistance of your current representative that has been working on your case, not fire them and hire another, who would need to get up to speed on the case.

Yes. She has that right. But if she knows what she was doing, she would let her representative, whether they are an EA or a CPA or an attorney, disagree for her. She should let her representative do his or her job. If she has a problem with how the representative is doing their job, she should speak to them directly, and make a change if desired. There are procedures for disagreeing with the findings of an IRS auditor. Announcing to the auditor that she doesn't like the results and thinks she should hire a new representative will not change the findings of the auditor. Actually, in most cases, I do not have my client come into the audit. If we do, it is because there is a specific reason to do so. Your representative is best able to present her case in a factual manner that keeps emotion out of the equation. Unless you think that incompetence is an issue (and if you have any doubts, you need to investigate beforehand), you likely should pick your representative and stick with them. The only exception I can think of to this is that, if the IRS brings up possible criminal matters against her, the EA or CPA needs to immediately stop the case and get an attorney involved as the representative.

Audits? They happen all the time! (OK, a bit of accountant humor...) Reading your post, it appears you have two accounting professionals you work with (the CPA and the EA). If you have any doubts as to which should represent you, I would meet with each of them and ask each one what kind of experience they have representing clients in audits. Ask them how familiar they are with the issues that you are going to be audited on. Make sure they represent clients at audits regularly. Ask each of them to go over with you briefly the steps they might take or need to take in your case. Many EA's do not do IRS audit work. Many CPA's do not work with tax matters very often. Many CPA's and EA's specialize in such matters. You need to find the right representative for your situation. Good luck! Bryan

-- Bryan Kellar, EA Oregon Tax Help, Inc. -- Portland, Oregon

Yes.

She can hire any recognized rep she wants.

I'm not sure why you think one would be better than other unless it was a matter of either personal reputation or skill involving specific EA or CPA.

-- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062

One is free to change representation at any time. However, since an EA and a CPA are of equal authority before the IRS, there is no advantage to switching just on account of how they hold their authority to represent the public before the agency. Why do you think it makes a difference?

She would have to rescind her prior 2848 authorizing the EA as her representative (by issuing a new one naming the CPA AND taking an action regarding the check-box that rescinds prior 2848s).

It doesn't make sense, unless she's unhappy with the representative she has.