You Get Professional Advice
For an ongoing business, it is difficult to underestimate the need for a CPA. A certified accountant will assist you in handling basic tax questions and business advice.
However, when it comes to sensitive issues that involve the IRS and complex tax laws, an attorney is an absolute necessity. Indeed, professional tax attorneys are more knowledgeable on the multifaceted, positive, and negative impacts of tax filings.
If you have any problems related to your tax, the tax attorney will provide you with the best advice, and also assist you in getting all your tax benefits. After all, this is his main line of work.
How To Become A Tax Attorney
Becoming a tax attorney requires a lengthy education. Aspiring tax attorneys will need to first earn a bachelor’s degree many pursue bachelor’s degrees in accounting.
Then, they take the LSAT exam and attend law school to earn a juris doctor degree. Earning a JD generally takes three years. To practice law, tax attorneys must pass the bar exam after finishing school.
Contact Our Law Firm For A Free Initial Consultation
Bomar Law Firm is committed to efficient, cost-effective solutions with a focus on results in every case that we handle. During a free one-hour consultation, we will look at the specific facts of your case. We are generally able to provide a flat-fee amount that we will charge for the case. Our law firm is located in Atlanta, Georgia.
Contact us to schedule a free consultation to discuss your case with a tax attorney at our firm.
Don’t Miss: How Much Is Washington State Sales Tax
Areas Of Overlap Canadian Tax Lawyers Andaccountants
Having delineated the exclusive areas of tax practice,everything else is properly the work of both tax lawyers oraccountants. However in some cases tax lawyers are better able toserve their clients, and in others accountants are better able toact.
CRA tax audits can be handled by either tax lawyers oraccountants. If the issue is one of proof of documentation tosupport expense claimed, then the accountant is usually in positionto provide that audit evidence to CRA in a cost effective way. Theaccountant prepared the financial statements, and perhaps did thebookkeeping. It should be a simple matter for the accountant torespond to a CRA audit enquiry. However if the issue involves legaltax interpretation or possible civil penalties then a tax lawyershould be retained to respond to CRA.
Similarly CRA collections issues can often be handled by taxlawyers or accountants. On the other hand where CRA is threateningor has taken legal action it is often a good idea to consult with atax lawyer first.
Tax planning is an area where both tax lawyers and taxaccountants do the same work, and whereeither can be consulted. In this case the decision is usually basedon an existing relationship, or a referral.
When Should You Work With A Tax Lawyer
While most people need tax accountants on a seasonal basis, the approach to tax lawyers is more reactive than proactive. Certain situations and conditions merit the counsel of a specialist in tax law, but theyre rather specific.
Obviously, if the CRA is knocking down your door, you probably need a tax lawyer. But retaining the services of a tax lawyer long before things come to that point is the real problem-solver.
Business owners should preemptively consult tax lawyers to get strategic advice on how to organize their company and holdings.
In much the same pay, those who are leaving an estate behind may want to seek out a tax lawyer. Implementing a smart strategy before its too late can save our loved ones much trouble.
If you are exploring a lawsuit or a claim against the CRA, a tax lawyer is absolutely of the essence.
Not sure if you need a tax lawyer or tax accountant? Contact Faris CPA today for an initial consultation. Click here to get started.
You May Like: Where Is Your Agi On Your Tax Return
Tax Lawyer Vs Tax Accountant Faqs
-
Can a lawyer be an accountant?
Definitely. However, Its very uncommon. Both law school and becoming a CPA are very challenging processes. Few people decide to attempt both, and fewer still accomplish it. Still, they do exist. Some CPAs become lawyers for the privilege of lawyer-client confidence.
-
Do accountants go to law school?
CPAs do not typically attend law school. Chartered Professional Accountants have to obtain certification, and one of the requirements is a degree in Accounting or related fields. They are most often taught at Business or Finance schools in universities.
-
Do you need a CPA to be a tax lawyer?
You do not need to be a CPA in order to be a tax lawyer. Tax lawyers are intimately familiar with tax legislation, but they dont need to be certified CPAs.
When To Hire A Tax Attorney
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
Don’t Miss: What Home Improvements Are Tax Deductible 2021
Tax Attorney: When And Why You Should Hire A Tax Lawyer
Tax attorneys can offer their clients a wide range of services, including filing taxes. They can help you with any tax and legal issues too complex for you to handle. But why should you hire a lawyer to help with tax problems when an accountant can also handle them?
Read on to find the answer to this question and everything else you may need to know about tax attorneys.
Delinquent Payroll Taxes Are Aggressively Pursued By The Irs & State Authorities And Put Many Companies Out Of Business Let Us Help Yours
The IRS and State agencies take payroll tax debt very seriously: delinquent Employment Payroll Taxes can result in the assessment of substantial penalties and interest along with the seizure of assets including liquidation of the business.
Payroll taxes in particular are the most aggressively collected and penalized of all tax typesFederal and State Payroll Tax laws give the government much greater power to try to recover what is owed. This authority includes the ability to collect the payroll liabilities from business owners, officers and even employees personally.
Contact us as soon as possible if your business is experiencing Payroll Tax Problems or a Payroll Tax Audit. Any discussion you have or information you provide to the IRS or State tax agency can be used in an attempt to collect the delinquent tax. For example, providing a list of accounts receivable gives the IRS or State a source to Levy.
Lothamer has successfully represented thousands of large and small businesses with payroll tax issues and other business tax problems. Our Enrolled Agents will fight for you to reduce the amount you owe and keep your business operating. Our accounting and legal backgrounds give us the knowledge to restructure your business in a way to allow for resolution.
Let us worry about the IRS so you can focus on growing your business. If you need assistance with payroll tax problems please contact us at 829-2455to schedule a initial consultation.
You May Like: How To Figure Out Paycheck After Taxes
Are Tax Attorneys Worth The Cost
There are different kinds of professionals in the tax business, making sure we have all of our ducks in a row when it comes to anything and everything tax related. There are tax accountants, financial experts who know the ins and outs of tax laws and can help you plan and file properly. A tax attorney is a lawyer well-versed in tax law, whose job it is to handle technical and complicated legal dilemmas related to your taxes.
What Do Tax Attorneys Specialize In
IRS tax attorneys specialize in handling a wide range of legal issues related to the tax code. They understand the intricacies of the federal tax code, and most also have in-depth knowledge of the tax code for at least one state. Tax lawyers typically have expertise in at least one of the following issues:
Recommended Reading: How To Get Tax Form From Unemployment
What’s The Difference Between A Cpa And A Tax Attorney
The thought of tax season can bring on a sense of dread for many people. But there are qualified professionals whose jobs are to help others through the complexities of tax preparations, filings, and payments. In this article, well cover the main differences between two of these professionals: CPAs, or certified public accountants, and tax attorneys. Well also discuss how to determine which of these you may need to enlist for help, depending upon your financial circumstances.
Reasons Why You Should Hire A Tax Attorney
- See More in: Tax Law
Tax-related issues should be handled thoughtfully and given careful consideration. Without a doubt, the IRS is no joke, and any mistake from you, your employee, or an unreliable tax preparer could land you into serious problems.
According to the tax foundation, the Internal Revenue Code consists of 2,412,000 words, and other regulations help explain the laws, adding some 7,665,000 more words. Those are ten million words for youwhat could be easier? No wonder 26% of Americans hate filing taxes!
In this article, we have outlined why and when it is crucial to engage a tax attorney to handle your tax issues.
Recommended Reading: When Will I Get My Taxes 2021
What Does A Tax Attorney Do
Depending on the tax attorneys specialization, he or she can offer many services. Tax attorneys can walk clients through complex tax processes, monitor tax legislation changes, help strategize and structure transactions, and offer guidance and representation to clients facing tax issues or penalties.
Here are some services a tax attorney may provide:
- Help clients file their taxes, taking advantage of tax credits and filing options that may save them or their business money
- Inform clients of pending tax legislation and how the changes might affect them
- Help clients structure a tax-advantaged estate plan
- Facilitate transactions such as establishing and managing a REIT or forming a mutual fund
- Represent and advise clients facing an audit, investigation, IRS penalties, wage garnishment, or litigation due to back taxes or errors
- Communicate with the IRS on their clients behalf
A tax attorney and a certified public accountant do many of the same things, but the attorney has also passed the bar exam and is a licensed lawyer. Tax attorneys typically have a deeper understanding of tax laws, regulations, and associated liabilities.
Get The Power Of Legal Protection
This website gives a general overview of legal plan coverage. The benefits and prices described are not available in all states and Canadian provinces. LegalShield is a product of Pre-Paid Legal Services, Inc. and provides access to legal services offered by a network of provider law firms to LegalShield members and their covered family members through membership- based participation. Use of this website and the services is subject to PPLSIs Terms of Service and Privacy Policy. See specific details on terms, coverage, pricing, conditions and exclusions in the Personal Legal Plans or Small Business Legal Plans sections of this website. Neither PPLSI nor its officers, employees or sales associates directly or indirectly provide legal services, representation or advice. Case studies are actual LegalShield member experiences. Names and identities have been changed for attorney-client privilege requirements. For statistics on actual earnings please review the Income Disclosure Statement here.
Also Check: Is It Better To File Taxes Jointly
Our Tax Professionals Can Help You With These Solutions
Tax Group Center lawyers and certified CPAs help taxpayers with debt relief every day. In many cases, taxpayers who owe the IRS money can automatically qualify for relief options as long as they have filed their tax returns.
Many of the tax relief options available to taxpayers were introduced with the IRS Fresh Start initiative in 2011. This program combines things like automatic forgiveness with manageable payment plans to allow taxpayers to get in good standing with the IRS.
Yes,tax debt negotiation with the IRS is possible if you understand how the programs offered under the Fresh Start Initiative work. In fact, an agreement can often be reached in just a few steps without the need to speak with the IRS in person if you have your tax attorney or CPA take care of the issue on your behalf.
One of the most common options for IRS debt relief is the IRSInstallment Agreement, a payment program that allows you to spread your debt payments out over six years. Some taxpayers who are unable to pay what they owe may qualify for the IRSOffer in Compromise that allows them to agree to pay a lower amount to get their tax burden wiped away.
Is Being A Tax Attorney Stressful
Without doubt a tax lawyer’s unhealthy relationship with cortisol, one of the key hormonal stress markers, starts like every lawyer’sin our first year of law school. It escalates through our first federal income tax course and continues to grow as we dive into those upper-level tax courses.Nov 17, 2016
Also Check: How Can I Get My Tax Return
Legal Matters Exclusive To Canadian Tax Lawyers
If you are going to Tax Court you need to have a litigation tax lawyer. While accountants can represent their clients in some Tax Court of Canada cases, they should not do so. Appearing in Tax Court is a purely legal activity, one for which Canadian tax lawyers have been specially trained and accountants have not. An accountant who offers to represent a client in tax court is not properly serving the taxpayer, and may not be insured in the case of a claim by the taxpayer that the case was mishandled.
Similarly a threatened CRA tax evasion prosecution or prosecution for failure to file tax returns should only be handled by a Canadian tax lawyer. It is a tax battle that may end up in the criminal courts where accountants cannot, and should not, appear.
Implementing tax planning structures or tax reorganizations, even if planned by an accountant, is legal work that is exclusive to tax lawyers. Drafting agreements is another example of work that Vancouver tax lawyers are trained to do and for which accountants lack expertise.
Legal tax opinions can only be provided by a Canadian tax law firm. However accountants can give non-legal tax opinions. If the client requires a legally binding tax opinion, they need a Canadian tax lawyer. Otherwise they can use a tax accountant.
Types Of Tax Attorney Fees:
Tax attorneys generally charge either an hourly rate or a flat fee for their services.
- Hourly Rate: The majority of tax attorneys charge by the hour. Every attorney will charge a different hourly rate, but most rates are between $200 to $400 per hour. Highly experienced attorneys or attorneys working in big firms in large cities can charge more than $1,000 per hour.
- Flat Fees: The other options is aflat fee, which is a one-time charge regardless of how many hours the attorney spends on your case. Flat fees are generally only used on simple or routine matters.
Which one is better? There are benefits and drawbacks to both of these fee types. An hourly rate is attractive because you dont run the risk of overpaying if the attorney is able to resolve your case quickly or with very little work. On the other hand, you bear the risk of higher legal fees if the opposite occurs and your case takes more time to resolve than originally expected. This is one reason why most consumers prefer a flat fee arrangement, which allows them to lock in the cost of hiring an attorney.
At the end of the day, you might not have much choice. Generally, tax attorneys charge by the hour unless the case is very routine or simple. Feel free to request a flat fee, but the attorney might not be willing to take the risk of having to perform extra work if something unexpected happens in your case.
Read Also: How To Find Out Where My Tax Refund Is
The Role Of A Tax Attorney
Tax attorneys are lawyers who have gone through law school, passed their states bar exam and emphasize tax issues in their practice.
Unlike CPAs, who are skilled in managing financial records and preparing tax returns, the tax attorney is more planning and dispute-oriented meaning they are primarily trained to help minimize a business tax liability through the structuring of assets or to represent them through tax-related litigation.
While CPAs are authorized to represent clients in IRS disputes, they typically do not have the training or experience that a tax attorney would have when it comes to representing a client. If you are facing an audit with the potential for harsh penalties, a tax attorney would be the better choice due to their negotiation skills and intimate knowledge of legal principles and case law.
Tax attorneys also offer one major benefit that a CPA does not confidentiality. Any information you provide your tax attorney is protected by client-attorney privilege, meaning they cannot be forced to testify against you.
This offers a distinct advantage if you are dealing with possible criminal charges from the IRS and you wish to prevent conversations with your tax expert from inadvertently being used against you.
Should I Negotiate With The Irs Myself Or Hire A Tax Attorney
If youre considering whether or not to negotiate your tax concerns with the IRS, there are a few things you need to know. First, its important to understand that negotiation is a two-way street. Oftentimes, the IRS is willing to negotiate if youre willing to accept what they offer you.
That said, it may be in your best interest to hire a tax attorneyto assist you in your negotiations. A tax attorney has considerable experience dealing with the IRSoften on a daily basis. As such, tax lawyers are better equipped to negotiate on your behalf to ensure that both you and the IRS are happy.
Also Check: How To Deduct Mileage On Taxes
