Should I hire a tax attorney or a CPA to handle my tax problem?



Accountants provide cover for general bookkeeping, financial planning, preparations and filing of tax returns, providing assistance with cost, budgeting, estate planning and asset management and can assist in carrying out comprehensive business growth decisions.

The CPAs or Certified public accountants have gone through training that is more specialized and also have the needed credentials. To carry out basic business advice and tax filing, it may be ideal to utilize an accountant. Also, for numerous estates and financial planning, out of state returns, audits or asset management, it is ideal to spend more to hire a CPA.

Although the CPAs place more emphasis in filing of your tax returns and management of your finances, a tax attorney assists in helping out with the legal parts of the proceedings of your finance like filling a lawsuit against the IRS or providing representation for you if the IRS files a lawsuit against you, international business tax laws, tax fraud investigations, payroll taxation problems or IRS criminal investigations.

Nonetheless, both tax attorneys and CPAs have the capacity to offer support for tax planning and they can provide help to organizations and individuals in relation to financial decisions by placing emphasis on the likely benefits from tax or the implications of those decisions. For these circumstances, the tax attorneys provide enhanced specialization when it comes to the legal questions that have to do with tax planning while CPAs have more knowledge on the implications they have on your finance.

Additionally, both the tax attorneys and CPAs can assist companies and individuals to defend themselves when it has to do with issues related to tax. Tax attorneys are different because they have the knowledge and expertise in handling legal setbacks and can provide representation for clients in the court system while they are defending themselves from or going against the IRS. A CPA can assist in making a legal case stronger especially if he or she assisted in the preparation of the tax returns that resulted in the issue. Also, a tax attorney provides the benefit of an attorney-client privilege while a CPA only provides attorney-client privilege if serving towards the direction of a lawyer to provide the client with information that is relevant to the case.

So depending, if your CPA is aware of your predicament and is convenient assisting you in dealing with the IRS, then you might be okay having that individual represent you in an audit. Nonetheless, from our experience with other clients, a lot of CPAs do not like handling the IRS or audits.

If you want to battle your audit in Tax court, then you will require a tax attorney to provide you with representation. Many people put themselves in more trouble by providing too much information to the IRS which can result in self-admissions.