With respect to the legal aspect of taxes, CPAs can negotiate and represent a taxpayer before the IRS or a tax officer. In addition, some CPAs are particularly qualified to assist in tax disputes and controversies that need to be resolved in U.S. tax court, so if you`re already working with a CPA, you should ask if the accountant is qualified to help you with the specific legal issues you`re facing. Of course, tax lawyers can also help with these legal issues. Some areas where you can choose a CPA or lawyer are: Some companies hire tax lawyers as needed when tax issues arise. Estate planning, real estate and employment lawyers often run into tax issues at some point in their practice and may seek advice from a tax lawyer. Unlike a CPA, a tax lawyer doesn`t do the numbers. Few lawyers would know how to do your taxes to determine what you owe, at least no more than a layman. Your lawyer also wouldn`t be good at reviewing potential investments and advising you on them. Tax lawyers help their clients navigate and comply with the complex system of tax laws and legally take advantage of the myriad of deductions, credits and exemptions. They also represent clients in tax disputes. Tax lawyers in private practice support both individuals and businesses. You can also act as a business consultant or work in government.
In addition, licensed lawyers must undergo legal training to maintain active membership in the bar in their state. Each state bar association offers guidelines and mandates on who can apply to become a tax lawyer. Tax lawyers must comply with rules and regulations or risk losing their license to practice this right. Another way tax lawyers are helpful is through tax planning. If you need someone to create a tax plan that minimizes your liability, trust a lawyer to structure your assets. A lawyer has more dispute resolution training than the average CPA. If you just need basic tax preparation and have no issues with the IRS, consider a CPA or even a registered agent (TRA). An EA is like a CPA, except that an EA doesn`t need to have as much experience or training.
Environmental assessments generally cost EAs, CPAs and lawyers the least. Keep in mind that an EA or CPA may not be useful if you`re involved in a tax dispute. To become a tax lawyer, applicants must first earn a four-year bachelor`s degree, usually in mathematics, accounting, or economics. Next, they must pass the Law School Admission Test (LSAT) to be admitted to a law school. LSAT measures skills in areas related to legal work, such as reasoning, analysis, and reading comprehension. Even with a high LSAT score, law school applicants often have to go through a long and rigorous admissions process to be admitted. A tax lawyer may, in some cases, begin formal training in a manner similar to a CPA; Perhaps through a bachelor`s degree in economics, economics or another related field. After obtaining his bachelor`s degree, a tax lawyer must prepare and pass the strict LSAT (Law School Admission Test).
Most Juris Doctor degrees take three years to complete, followed by additional preparation to take a state bar exam in one or more states to be certified as a bar. Similar to the role of the AICPA, each state`s bar association maintains strict guidelines that attorneys must follow in order to retain their licenses. They must also regularly inquire about legal matters to keep their legal status active. Whether you`re considering hiring a CPA or a tax lawyer, it`s important to be proactive rather than waiting for problems. You can often arrange a free consultation with a potential accountant or tax lawyer to discuss your needs and determine your next steps. Also, if there is a possibility of criminal prosecution by the IRS due to the litigation, seek the help of a tax attorney. Your tax lawyer is protected by solicitor-client privilege, so your conversations remain confidential. Your company`s tax lawyer will not be required to testify against you based on your conversations. This is not to denigrate CPAs. In many tax cases, accountants have similar training to tax lawyers. CPAs must go to college and pass a CPA test to obtain their certification. In fact, many CPAs receive specialized education and training, including master`s degrees (usually a master`s degree) in taxation.
However, these degrees, along with a Master of Laws LLM, are also available to lawyers. NewPoint Law Group, LLP`s Roseville and Sacramento tax lawyers represent individuals facing IRS lawsuits, tax audits, tax arrears, and other tax issues. In many cases, hiring a CPA may prepare you for potential problems or not meet your needs. For a free consultation with our tax lawyers and to see if hiring a tax lawyer is right for you, call 800-358-0305 today.
