You’re experiencing issues with your taxes, and you need professional assistance. Who should you contact? While both tax attorneys and CPAs (Certified Public Accountants) can help you with your taxes, deciding between a tax attorney vs CPA lies in the matter and how complex your tax problem is.
Understanding the Difference: Tax Attorney vs CPA
What is a CPA (Certified Public Accountant)?
A Certified Public Accountant is a professional who specializes in tax preparation, bookkeeping, accounting, and financial planning. Unlike a tax attorney, a CPA has extremely limited legal training and authorization without a passing exam, which means they cannot assist you in situations like representing a client in court.
What is a Tax Attorney?
A tax attorney is a legal professional who can assist and represent clients in tax-related matters.
Tax attorneys undergo extensive studies and training specifically in tax law. Therefore, they are experts in navigating the complexities of tax regulations, including negotiation with the IRS.
Another important differentiation between a tax attorney and a CPA is the attorney-client privilege, which protects confidential communications.
Key Differences at a Glance
| Feature | CPA | Tax Attorney |
| Focus | Accounting, prep, audits | Tax law, legal disputes |
| Legal Privilege | No | Yes, Attorney-Client Privilege |
| Court Representation | Court Representation | Yes |
| IRS Negotiation | Extremely Limited | Full legal representation |
When Should You Choose a Tax Attorney Over a CPA?
If You’re Under IRS Investigation or Facing Criminal Charges
A tax attorney is especially crucial in assisting with tax matters that are deemed serious, such as IRS investigations and criminal charges.
In these situations, the IRS investigates your finances, which may include auditing your returns and examining issues such as tax evasion and fraud, all of which can lead to serious legal complications.
Tax attorneys are trained to handle such situations and know all the steps to take to help mitigate the risks and avoid prosecution.
When You Need to Negotiate with the IRS
The success of resolving your tax problems heavily relies on your communications with the authorities.
When choosing to use the services of tax attorneys, they become your legal representatives, which includes becoming your communication with the IRS. Tax attorneys are skilled negotiators who can help respond, argue, and secure legal defense and favorable terms.
For Complex Tax Litigation or Appeals
Navigating the complexities of taxes is standard practice for tax attorneys. If you are involved in a complex tax litigation or appeal, tax attorneys are licensed to represent you in court, prepare legal briefs, and argue tax law. Furthermore, they handle IRS Office of Appeals appeals as well as Tax Court litigation for tax or penalty disputes.
You Want Confidentiality
A tax attorney provides you with attorney-client confidentiality, which is particularly important in cases where you are dealing with the IRS. Clients can share sensitive tax issues with confidence, knowing that these communications are protected by law.
When a CPA Might Be the Right Choice
You Need Help with Tax Preparation or Filing
A CPA is suitable if you need assistance with preparation and documentation, such as routine tax filings, managing personal finances, and calculating tax obligations to minimize your tax liability. Although these steps may appear simple, they are critical because many tax issues arise from failure to complete these routines correctly.
You Need Ongoing Financial or Business Accounting
Keeping up with documentation and financial accounting is not a simple chore. CPAs are professionals who can help you organize your financial documents. Keeping your data structured can make it easier when you need to report your finances and taxes.
Final Thoughts: Choosing the Right Tax Professional
When it comes to a tax attorney vs CPA, both can help assist you in staying in compliance with current tax rules. The differences lie in the intricacies of the tax problems at hand.
A certified public accountant can help you organize and calculate routine tax files and personal finances, allowing you to keep accurate records and filing that can prevent tax troubles in the first place.
However, when it comes to more significant tax concerns that necessitate legal skill and counsel, tax attorneys are the best choice. Dealing with tax issues without expert assistance can lead to further complications, including increased fines, asset forfeiture, and even jail time.
Contact Greenberg Law Group, P.A. for all of your tax needs. Ross Greenberg is here to represent you and help you get the best potential results.
