The IRS does not care if your tax attorney is from the state you do business in. If a problem arises it is possible that specific knowledge of a particular state law is necessary.
Good luck to you.
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An attorney must be admitted to a specific court to practice there. To practice in Illinois state courts, you need to be admitted in Illinois; to practice in federal courts, you need to be admitted to that specific district, which may or may not require admission to that state's courts (for instance, I am admitted in Wisconsin federal courts, but not Wisconsin state courts).
Administrative agencies have their own rules - usually you just have to be admitted somewhere in the United States, although this varies by agency.
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