When it comes to U.S. taxes, getting advice from the right professional matters just as much as filing correctly. Many taxpayers don’t realize that not everyone is legally qualified to give tax advice—and taking advice from the wrong source can lead to penalties, audits, or missed savings.
In this guide, we’ll explain who can legally give tax advice in the U.S., the differences between Enrolled Agents (EAs) and Certified Public Accountants (CPAs), and how to choose the right expert for your needs.
What Does “Tax Advice” Actually Mean?
Tax advice goes beyond basic tax filing. It includes:
- Guidance on deductions and credits
- Tax planning to reduce future tax liability
- Business tax structuring (LLCs, S-Corps, etc.)
- IRS compliance and representation
- Advice on 1099, W-2, foreign income, and investments
Because tax advice impacts legal and financial outcomes, the IRS restricts who can provide it professionally.
Who Is Authorized to Give Tax Advice in the U.S.?
The IRS recognizes certain professionals with the legal authority to prepare returns, offer tax advice, and represent taxpayers before the IRS.
- Enrolled Agents (EA)
Enrolled Agents are federally licensed tax professionals authorized directly by the IRS.
What Makes an EA Unique?
- Licensed at the federal level (not state-based)
- Specializes exclusively in taxation
- Can represent taxpayers before the IRS for audits, collections, and appeals
What Can an EA Do?
✔ Provide tax advice
✔ Prepare individual & business tax returns
✔ Offer year-round tax planning
✔ Represent clients before the IRS
Best For:
- Individual taxpayers
- 1099 contractors & freelancers
- Small business owners
- Tax resolution & IRS issues
EAs are often a cost-effective and highly specialized option for tax advice.
- Certified Public Accountants (CPA)
CPAs are state-licensed accounting professionals with broader financial expertise.
What Can a CPA Do?
✔ Provide tax advice and tax planning
✔ Prepare tax returns
✔ Handle accounting, auditing, and financial reporting
✔ Represent clients before the IRS
Best For:
- Businesses needing full accounting services
- Corporations with complex financials
- Clients needing audits or financial statements
CPAs often work beyond taxes, covering bookkeeping, payroll, and audits.
Who Should You Choose for Tax Advice?
Choose an EA if:
- You need focused tax advice
- You are a freelancer, contractor, or small business
- You want IRS representation
- You want cost-effective tax planning
Choose a CPA if:
- You need accounting or auditing services
- You run a mid-to-large business
- You need financial statements
Who Is NOT Authorized to Give Tax Advice?
Be cautious when taking advice from:
- Unlicensed tax preparers
- Friends or family
- Online forums or social media influencers
- Software-only tax filing platforms
❌ These sources cannot represent you before the IRS and may give incorrect or outdated advice.
Why Professional Tax Advice Matters
Wrong tax advice can result in:
- Overpaying taxes
- IRS penalties and interest
- Missed deductions and credits
- Audit risks
Professional tax advice ensures:
✔ Compliance with IRS rules
✔ Maximum legal tax savings
✔ Peace of mind
How RIWA Tax Services Can Help
At RIWA Tax Services, we provide:
- Expert U.S. tax advice
- Tax planning & preparation
- Support for individuals, freelancers, and businesses
- Year-round tax guidance—not just during tax season
Whether you’re filing a simple return or managing complex tax situations, we help you stay compliant and save more—legally.
👉 Start your tax planning today: https://theriwa.com
