Do you need a tax attorney or CPA depends upon your business or personal tax or financial needs. Tax Attorneys and CPA’s both are expert in their own fields. While there might be some overlap in their expertise and skills both have different skillset that can help you in different ways.
While both of them can prepare tax returns and do research in tax related matters, The primary difference between the two is that, while a CPA holds expertise in Financial Audits, Financial Statement preparation and dealing with the financial implications of tax returns, a tax attorney specializes in handling the legal side of taxation
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What is the difference between a CPA and Tax Attorney?
Reasons to Hire a Tax Attorney
There are many reasons to Hire a Tax Attorney. Tax Attorneys can highly trained experts in Tax Law and interpretation of the tax law.
- Attorneys can provide Legal Opinion and Advice in writing
- Definitely hire a Tax Attorney if you have Criminal Case or IRS is suspecting you of tax crimes
- Tax Attorney can provide Representation in the tax court
- If you owe Back Taxes that are way overdue and IRS is
- If you have liens or levies due to unpaid taxes, Tax Attorneys can help either remove or stop Liens and Levy’s
- Attorneys can help halt wage garnishments
- Attorneys can negotiate with the IRS and do an offer in compromise
- Lawyer can provide legal help with trusts or estates taxes
Reasons to Hire a CPA
There are several reason to hire a CPA. A Certified Public accountant is highly trained professional who has gone though extensive education, testing and training in order to achieve this highly desired certification.
They can offer advice that can truly help you financially. We have listed many reasons to hire a CPA:
- Prepare and File Personal and Business Taxes
- Prepare Compiled, Reviewed or Audited Financial Statements
- CPA are good at detailed analysis of tax deductions and Tax credits you or your business may qualify for
- Determining the right business structure in terms of tax consequences such as S Corp, C Corp, LLC or Sole Proprietorship.
- Picking Right Accounting Method (Cash Basis vs Accrual Basis)
- Represent your in case of an IRS, State or Local Govt Audit
- Preparing financial Statements such as Profit and Loss, Balance Sheet and Cash Flow Statements
- CPA can help with payroll preparation and filing payroll forms with IRS and State
- Help prepare business plans, budgets and overall Financial planning
- Help you understand how a particular law applies to your tax situation
- Help with due diligence when you are Acquiring a business, Merging with another company
- Help understand tax consequences when you are selling a business or a real estate property.
- Provide Forensic Audit or accounting services in order to prevent fraud or discover fraud.
Can CPA give Tax Advice?
Do CPA know Tax Law?
Can a CPA Negotiate With The IRS?
Yes CPA can negotiate with IRS on your behalf. CPA, EA and Tax Attorneys are three of the circular 230 professionals that can commonly known to negotiate with IRS on your behalf. Once you get to a Tax Court, that when you will need a Tax Attorney to take over the case.
How difficult is Tax Law?
Tax Law is Very Difficult and Ever Changing. What makes is difficult is that its quite dynamics. New laws are passing each year and thousands of lines of tax code and exceptions to the tax code are being implemented every year.
So, if something was deductible last year, that may or may not be a write off this year as the law may change it or the amount of deduction may change as well.
Do Tax Lawyers Go to Court?
What does a Tax Attorney Do?
Tax Attorneys can highly trained experts in Tax Law and interpretation of the tax law.
Tax Attorneys provide various services to individuals and businesses.
- Attorneys do provide Legal Opinion and Advice in writing
- Tax Attorneys help represent you if you have Criminal Case or IRS is suspecting you of tax crimes
- Tax Attorney can provide Representation in the tax court
- If you owe Back Taxes that are way overdue and IRS is
- If you have liens or levies due to unpaid taxes, Tax Attorneys can help either remove or stop Liens and Levy’s
- Attorneys do help halt wage garnishments
- Attorneys can help negotiate with the IRS and do an offer in compromise
- Lawyer do provide legal help with trusts or estates taxes
How much does a CPA cost?
Learn More
IRS Form 911: Taxpayer Advocate Service (TAS)
How to Find CPA Firms Near You? (and Pick the Best One)
What Is the Difference Between a CPA and a CFA?
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