CPA vs. Tax Attorney: What’s the Difference?

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CPA vs. Tax Attorney

Paying taxes is one of the most fundamental acts of being an American. Yet, it is also an act that no one likes. It is tedious but necessary. You can either choose to pay for taxes and go through the whole procedure all on your won. Or, you can entrust the preparation of your taxes to professionals who specialize in this field. A Certified Public Accountant or a Tax Attorney can help you in tax preparation and filing.

There are many additional types of experts that specialize in handling of the various issues associated with the taxes. However, a CPA and a Tax attorney are the two most widely known. To understand what the difference between them is, you need to understand what they are.

What is a Certified Public Accountant or C.P.A.?

A CPA is a highly qualified individual which can offer you a lot of assistance in the handling of tax returns. Earning the title of a CPA is not an easy task. It requires countless hours of study, examinations, and testing. Even if the certification is gained, their education does not finish. Instead, they continue to learn throughout the years and keep up with any changes in the regulations.

Every few years, they have to renew their license by providing proof of their continued competency. That’s why a professional CPA is unique compared to the majority of tax specialists. A CPA is a lot more knowledgeable and experienced. Any complicated tax situation can be easily straightened out with the help of an experienced CPA firm Plano.

Benefits of Hiring a CPA

  • From small to large business owners, divorcees, and high-stakes investors; everyone can hire a CPA for help with their taxes. Almost any field falls under their area of study.
  • A CPA can help you with local, as well as federal taxes.
  • A CPA can ensure that your personal or business tax returns comply with the laws and regulations.
  • Non-experts in the field of taxes may miss certain exploitable benefits and incur certain avoidable penalties. A CPA can easily identify which tax benefits you can qualify for, along with avoiding any imposition of liabilities.

A CPA can help with accounting, tax planning, financial planning, internal or external auditing, and more.

What is a Tax Attorney?

Tax attorney is an expert in the tax laws. He or she has a degree and permit to practice law and represent a client in the court or other legal matters. Tax attorneys qualify for their license after passing their State bar exams and specializing in the legal aspects involved with the taxes.

A CPA is the best tax professional that can help you resolve a difficult tax situation. However, a tax attorney is the best to help you if you are involved in legal trouble with a tax authority. Tax attorneys study for years to become specialists in tax laws. They can help in;

  • Resolving legal tax issues
  • Resolving matters of unfiled returns
  • Dissolving property liens
  • Halting account levies
  • Making compromises with the IRS or other tax authorities
  • Dissolving wage garnishments
  • Getting a settlement of back taxes
  • Earning relaxation or extension in the deadlines, and more!

Tax attorneys can even help restructure your entire assets to minimize legal repercussions.

You may approach and officially hire a tax attorney to assist you in resolving a legal tax dispute. A tax preparer can offer advice, but he or she cannot provide as much help in legal matters as a tax attorney can. You may ask your tax preparer for advice, but do not hesitate to consult the true specialists.

Specializations for Tax Attorneys

Certain tax attorneys specialize further in a unique area. Some become specialists in handling of the commercial audits, while others become experts in the matters of inheritance. Seek the specialists out for your unique situation and enjoy their specialized services.

Whom to Choose?

A CPA, as well as a Tax Attorney can offer you invaluable help with your taxes. But you must decide whose help is critical for you and your business. Choose a CPA for help with any matters regarding tax preparation and filing. However, you may hire a tax attorney for any legal dispute involving your taxes.

A CPA can help you file for you taxes in a proper and efficient manner, maximize savings, and minimize liabilities. A Tax attorney can help if you have received a debt collection notice from the IRS or any other tax authority.

You can hire both of these qualified individuals for a one-time service, to help resolve a difficult situation. However, you can also keep them on a retainer for helping you with long-term planning or help resolve a complicated case.

Never lie to your professional tax advisor. Confide in them and trust them to carry out your tasks with your best interests at heart. Follow their advice in any matters related to your financial situation.

The Choice is Yours’

Both CPAs and Tax Attorneys represent expertise in certain areas. A CPA is a master of the financial side of tax preparation. However, a tax attorney provides valuable service in the face of legal adversity.