Currently, individuals are contacting me asking for clarification in the difference between a CPA and a Tax Attorney. They are looking for someone to assist them in tax matters but are unsure which resource to use. There are a few different options when it comes to entrusting a professional with your tax case. Two of the most popular options are Certified Public Accountants (CPAs) and Tax Attorneys. Knowing which is right for you comes down to your needs and goals, as well as the status of your case with the Internal Revenue Service (IRS).
What Is a Certified Public Accountant?
CPAs passed an intensive CPA exam and continue to complete at least 120 hours of continuing education every three years. They possess a five-year business degree, with over 150 hours of education. You will not find these individuals at places such as H&R Block or Liberty Tax. A CPA is much more knowledgeable and experienced in tax preparation. A CPA can benefit you during tax season. CPAs know how to abide by federal laws while still minimizing your tax liability and maximizing benefits.
Hiring a CPA is a wise choice if you have complicated tax situations. These situations range from divorce, owning a business, having children, or if you have investments or high net worth. If you want to develop a relationship with a tax professional that can provide you sound insight and advice hire a CPA. They commonly assist individuals with long-term tax planning and help you stick to your long-term plan, in addition, to provide monthly and annual accounting services. Also, if you are ever audited the undertaking of this is easiest accomplished with a CPA by your side.
What is a Tax Attorney?
A CPA and a Tax Attorney are not synonymous, though both deal with taxation issues. Tax attorneys are legal professionals with law degrees and specialize in the legal side of tax preparation. While both CPAs and tax attorneys can represent your best interests in communications with the IRS, a tax attorney is generally the better choice if you’re involved in trouble with tax authorities, are facing liens and levies, or owe a very large amount in back taxes.
A tax attorney is a type of lawyer who specializes in tax law. These professionals are uniquely equipped to handle legal tax matters, such as settling back taxes, helping with unfiled returns, halting wage garnishment, undoing property liens and account levies, and coming up with compromises with the IRS. When a taxpayer is in trouble, he or she should go to a tax attorney for assistance, not a tax preparer.
There are many types of Tax Attorneys and you should select one that specializes in your tax concern such as problems with an estate or trust. One thing Tax Attorneys have in common is their expertise in tax controversy and dispute resolution.
Choosing the Right Type of Tax Assistance.
If you have not decided which professional to hire, consider the tax matter at its face value. Are you attempting to go through complex personal or business tax issues? If so, hire a CPA. Are you currently in trouble with the IRS or involved in a tax controversy matter? Hire a Tax Attorney. If you still cannot choose the right type I suggest calling them. These professionals will tell you which type of professional you should be hiring.
We hope this article helps clear up some of the differences between a CPA and a Tax Attorney. If you need further consultation please feel free to contact us as we would be grateful to assist you today.
