KNOW ABOUT TAX ATTORNEY Vs CPA
To navigate through the confusing world of taxes, we need professionals who can help us with a variety of tax related issues. Both the Tax Attorney and the CPA (Certified Public accountants) are available, who have the knowledge of taxes. However, sometimes their expertise may overlap and confuse us, so as to whom to hire.
So selecting the right tax professional to help with the tax problems becomes very important. We must be able to understand the difference between each tax professional and which one is best suited for solving a particular case.
A Tax attorney is a lawyer who specializes in tax law. They have both the knowledge of tax law as well the training to represent a client if involved in a legal case in relation to taxes. There are many different types of tax attorneys who specialize in different types of taxes. There are some who specialize in corporate tax, or partnership taxation, some work only with trusts and estates and there are others who specialize in tax controversy. A Tax Attorney deals with all the legal aspects of financial proceedings like international business tax laws, payroll taxation issues, filing a lawsuit against the IRS or representing the client if the Revenue Department files a lawsuit against them, tax related criminal investigations, or tax fraud investigations. They also have the knowledge of finance and accounts, are able to evaluate and assess complicated tax issues and also maintain confidentiality regarding the tax information of their clients.
The accountants generally do not specialize in taxation. They generally look after preparing and filing of tax returns. They also handle bookkeeping, , tax planning, audits, budgeting, financial planning, asset management, estate planning, and help in making business growth decisions. They are also a good investment for out-of-state tax returns, financial and estate planning, asset management, or audits. However, they cannot represent the client in case of any disputes regarding taxes.
Even though both the professionals have their own specified areas of work while handling taxes, but still there is an overlap in the work they do for their clients. Both CPAs and Tax Attorneys help in tax planning and assist to individuals and organizations to save taxes and also let them know of any penalties to be paid because of their financial decisions. In addition, both CPAs and tax attorneys can help individuals and companies to defend themselves concerning tax related issues. The difference is that a Tax attorney knows to handle legal challenges and can represent clients in the court and a CPA can help them to strengthen a legal case, if they had helped to prepare the tax returns of the individual or business organization.
So the bottom line is to hire the right kind of tax professional according to one need.