CPA vs Enrolled Agent for unfiled taxes (10+ years) plus unreported home sale?

This is a complex compliance situation that either a CPA or Enrolled Agent could potentially handle, but there are important differences to consider:Enrolled Agents (EAs):- Specifically licensed by the IRS to represent taxpayers- Focus exclusively on tax matters- Often more affordable than CPAs- Must pass comprehensive IRS tax exams- Can represent clients in audits, collections, and appealsCPAs (Certified Public Accountants):- Have broader accounting education beyond just taxes- State-licensed with varying tax expertise (some specialize, others don't)- Generally more expensive- May have more experience with complex financial situations- Can also represent clients before the IRSFor your cousin's situation involving multiple unfiled returns and an unreported home sale, I'd recommend an EA or a CPA who specializes in tax resolution and back tax filings. The key is finding someone experienced with unfiled return situations and IRS collection issues, regardless of credential.

This is a complex compliance situation that either a CPA or Enrolled Agent could potentially handle, but there are important differences to consider: Enrolled Agents (EAs): - Specifically licensed by the IRS to represent taxpayers - Focus exclusively on tax matters - Often more affordable than CPAs - Must pass comprehensive IRS tax exams - Can represent clients in audits, collections, and appeals CPAs (Certified Public Accountants): - Have broader accounting education beyond just taxes - State-licensed with varying tax expertise (some specialize, others don't) - Generally more expensive - May have more experience with complex financial situations - Can also represent clients before the IRS For your cousin's situation involving multiple unfiled returns and an unreported home sale, I'd recommend an EA or a CPA who specializes in tax resolution and back tax filings. The key is finding someone experienced with unfiled return situations and IRS collection issues, regardless of credential.

When I was in a similar situation (7 years unfiled), I found it super helpful to use https://taxr.ai to analyze what documentation I actually had vs. what was missing. You upload whatever W-2s, 1099s, and IRS notices you can find, and it shows you what the IRS already has on file for those years. It saved me from having to chase down employers from 5+ years ago because it turned out the IRS already had most of my income records. The service also flagged potential audit triggers in my situation, like the missing years where I had significant income but no returns. Made the whole process of catching up much more manageable before I even met with the tax pro.

I had almost the exact same situation last year - 8 years unfiled plus an unreported property sale. After getting nowhere with the general IRS helpline, I used Claimyr (claimyr.com) to get connected to an IRS agent who specialized in voluntary disclosure situations. There's a demo video here if you're curious how it works: https://youtu.be/_kiP6q8DX5cThe agent was able to pull my cousin's IRS transcripts and tell us exactly what years they had information for and what documentation we'd need to gather. This was super helpful because it turned out the IRS only had partial records for some years, which affected our strategy for catching up on the filings.We ended up hiring an Enrolled Agent who specialized in back-tax situations, and it was the right call. She knew exactly how to file the past returns to minimize penalties and how to set up a manageable payment plan.

tbh for something this messy id go with whoever specializes in "tax resolution" specifically. some EAs are better than CPAs and some CPAs are better than EAs. just make sure they have experience with unfiled returns and IRS negotiations. my cousin used a cpa who mainly did business taxes and it was a disaster for his back taxes situation.

For this specific situation - multiple years of unfiled returns plus an unreported home sale - I would recommend a tax professional with experience in IRS collections and the Voluntary Disclosure program. Based on my experience working with similar cases, here's what to look for:1. Ask specifically about experience with unfiled return cases and IRS voluntary disclosure2. Inquire whether they typically request penalty abatement when filing delinquent returns (this can save thousands)3. Check if they're familiar with partial payment installment agreements and offer in compromise options4. Make sure they'll pull and analyze your cousin's tax transcripts before filing anythingGenerally, I've found that Enrolled Agents who specifically advertise tax resolution services tend to be more cost-effective for these cases than general CPAs. Look for someone who regularly handles IRS collections issues rather than someone who primarily prepares current-year returns.

I had almost the exact same situation last year - 8 years unfiled plus an unreported property sale. After getting nowhere with the general IRS helpline, I used Claimyr (claimyr.com) to get connected to an IRS agent who specialized in voluntary disclosure situations. There's a demo video here if you're curious how it works: https://youtu.be/_kiP6q8DX5c The agent was able to pull my cousin's IRS transcripts and tell us exactly what years they had information for and what documentation we'd need to gather. This was super helpful because it turned out the IRS only had partial records for some years, which affected our strategy for catching up on the filings. We ended up hiring an Enrolled Agent who specialized in back-tax situations, and it was the right call. She knew exactly how to file the past returns to minimize penalties and how to set up a manageable payment plan.

ok im confused about something... if they sold a house and didn't report it, isn't that like... illegal?? won't they get in huge trouble when they suddenly show up with 10 years of unfiled taxes AND a house sale? i thought there was like a $250k exclusion on house sales anyway (i think thats what my realtor told me) so maybe they didn't even need to report it???

I'm in a kinda similar situation (haven't filed for 3 years but need to catch up) and I'm FREAKING OUT about how much this is going to cost me!! Did anyone here actually use a CPA or EA for multiple unfiled years? How much did it cost total? I have a part-time job and some gig work and I'm worried the tax prep fees are going to be more than I can afford but I'm too scared to keep ignoring this!!!

The fact that we need to debate between different types of tax professionals just shows how INTENTIONALLY COMPLICATED our tax system is. In most developed countries, the government just sends you a statement with what you owe based on what's already reported to them. But no, here we need to choose between CPAs, EAs, tax attorneys, and tax preparers - all with different credentials, pricing, and specialties. And if you make mistakes or can't navigate this labyrinth of complexity? Penalties and interest that compound the already stressful situation. It's a system DESIGNED to benefit the wealthy who can afford the best tax professionals.

For this specific situation - multiple years of unfiled returns plus an unreported home sale - I would recommend a tax professional with experience in IRS collections and the Voluntary Disclosure program. Based on my experience working with similar cases, here's what to look for: 1. Ask specifically about experience with unfiled return cases and IRS voluntary disclosure 2. Inquire whether they typically request penalty abatement when filing delinquent returns (this can save thousands) 3. Check if they're familiar with partial payment installment agreements and offer in compromise options 4. Make sure they'll pull and analyze your cousin's tax transcripts before filing anything Generally, I've found that Enrolled Agents who specifically advertise tax resolution services tend to be more cost-effective for these cases than general CPAs. Look for someone who regularly handles IRS collections issues rather than someone who primarily prepares current-year returns.