Selecting a Tax Professional, Tax Attorney, Certified Public Accountant, or Enrolled Agent?

Choosing a tax attorney, CPA, or registered agent to assist you with your tax issues is dependent on your individual scenario. What each tax expert can accomplish for you and your tax requirements is explained below:

Tax Lawyer:

Tax lawyers are experts in the intricacies of the IRS tax code. They advise clients on complex legal matters, including trusts, estate planning, tax disputes, and company tax legislation. Lawyers are skilled negotiators who examine case facts in light of the law and build arguments that best support a desired stance. They may utilize the legal system to gain influence in settling tax problems.

Some tax lawyers charge a fee to prepare your tax returns; however, tax attorneys are not accountants and are seldom engaged in tax filing with the IRS. When it comes to optimizing deductions and preparing forward for future tax years, tax lawyers usually lack the experience of accountants.

The following are some of the reasons you may require a tax attorney:

You are beginning a business and need legal advice on the structure and taxation of your firm.

You are in international business and need assistance with contracts, taxation, and other legal issues.

You intend to file a lawsuit against the IRS.

The IRS is conducting a criminal investigation against you.

You committed a tax offense and need the protection of attorney-client confidentiality.

If your tax matter is likely to go to tax court, or if you have been charged with a tax-related felony, hiring a tax attorney is a good idea. Tax lawyers, unlike other tax experts, have attorney-client privilege and cannot be compelled to give information to other parties or testify against you.

CPA:

Certified public accountants (CPAs) are mainly educated in the maintenance of company and financial records. They may also assist you in preparing your taxes, ensuring compliance with the tax law, and filing or correcting your tax returns. They could also represent you before the IRS. CPAs may offer financial planning and are an excellent resource for anyone looking for a comprehensive tax strategy to address personal and professional financial difficulties.

Enrolled Agent:

Enrolled agents are tax specialists who are certified after completing a rigorous test covering all parts of the tax law or working for the IRS for five years in a position that frequently interprets and applies the tax code and its regulations. Enrolled agents represent taxpayers during IRS collections, audits, offers in compromise, and penalty reductions. If you are facing an audit and think you have not committed a tax crime, or if you have failed to complete a needed form, an enrolled agent is a suitable alternative.