As a student-athlete navigating the complexities of Name, Image, and Likeness (NIL) income, choosing the right tax professional can significantly impact your financial success. The three primary tax professionals available—Certified Public Accountants (CPAs), Enrolled Agents (EAs), and Tax Attorneys—each offer unique strengths. Here’s a breakdown to help you decide which professional best fits your NIL tax needs.

Certified Public Accountant (CPA)

What They Do:
CPAs are licensed professionals who specialize in accounting, taxation, and financial planning. They handle complex tax filings, financial reporting, and comprehensive tax strategies.

Ideal for Student-Athletes Who:

• Require detailed financial planning and comprehensive tax services.
• Need assistance with multi-state tax obligations.
• Want year-round financial and tax advice, including proactive tax planning strategies.

Benefits:

• Extensive training and rigorous certification requirements.
• Can provide broader financial management advice beyond just tax preparation.
• Excellent for complex financial situations involving multiple income streams.

Enrolled Agent (EA)

What They Do:
EAs are federally licensed tax practitioners authorized to represent taxpayers before the IRS. They specialize strictly in tax matters and can handle IRS audits and appeals.

Ideal for Student-Athletes Who:

• Primarily need specialized tax preparation and IRS representation.
• Have simpler financial circumstances but still want expert tax advice.
• Need assistance with IRS communications or potential audits.

Benefits:

• Specialization in taxation with extensive knowledge of IRS regulations.
• Able to provide representation in IRS audits and appeals.
• Cost-effective for focused tax services and routine filings.

Tax Attorney

What They Do:
Tax attorneys are legal professionals specializing in tax law, capable of providing legal representation and advice on complex tax issues, disputes, and contracts.

Ideal for Student-Athletes Who:

• Face complicated legal tax situations or potential disputes.
• Need help drafting or reviewing NIL contracts to ensure tax compliance and favorable terms.
• Have significant NIL income requiring advanced legal tax planning and strategies.

Benefits:

• Specialized expertise in tax law and legal representation.
• Essential in resolving complicated IRS disputes or legal issues.
• Advisable when entering complex or high-value NIL contracts.

Questions to Consider When Choosing Your Professional

• What are my specific tax needs and financial goals related to NIL income?
• Do I anticipate complicated tax situations or legal issues?
• What level of ongoing support and communication do I prefer?
• How complex are my current and anticipated NIL deals and earnings?

Final Thoughts

Selecting the right tax professional—CPA, EA, or Tax Attorney—depends heavily on your specific circumstances, NIL income complexity, and financial goals. Understanding each professional’s strengths ensures you choose the best partner for managing your NIL finances, providing peace of mind and positioning you for lasting financial success.