What’s the Difference Between a CPA and a Tax Attorney?
When it comes to taxes, the landscape can be confusing. Accountants and attorneys have different roles when it comes to helping you navigate the complexities of filing your taxes. But what do they each do exactly? Read on to find out!
What Is a CPA?
As stated by Investopedia, a certified public accountant (CPA) is a licensed, professional financial accounting expert who provides services related to taxes, auditing, and other business-related financial matters. CPAs have undergone extensive training and testing in order to receive their license. They are knowledgeable in all aspects of taxation including federal and state personal taxation laws as well as corporate tax law.
A CPA can prepare and file income tax returns for individuals, corporations, partnerships, and other entities. They also ensure compliance with relevant regulations such as the Internal Revenue Code (IRC). Additionally, they can assist in setting up accounting systems to track business finances. They can give advice on financial matters related to mergers and acquisitions as well as taxation.
The primary role of a CPA is to provide accurate financial information that can be used to make important decisions. While they do know the legal implications of certain decisions, they are not authorized to process legal documents. Nonetheless, your CPA is an invaluable asset when it comes to managing your finances because they have the knowledge and experience to provide you with accurate financial advice.
What Is a Tax Attorney?
On the other hand, a tax attorney, as shared by Cornell Law School, is an individual who has earned a law degree, been admitted to the bar, and specializes in taxation. Tax attorneys can assist with any IRS disputes or questions you may have about your taxes. They have expertise in filing returns, understanding legal loopholes, and representing clients in court if needed. Their main role is to provide legal advice and assist in finding solutions to complex tax-related problems.
Additionally, tax attorneys are allowed to represent their clients in court if needed. Hiring an attorney is also different from a CPA. Often, you can employ accountants in-house for daily operations, such as bookkeeping and filing returns. On the other hand, a lawyer is typically hired on an as-needed basis or when dealing with complex legal matters. This is because their services are usually more expensive than those of a CPA, so it makes more sense to hire them for specific tasks. You can keep them on retainer if you’re expecting to have more complex legal needs in the future.
How To Determine if a CPA or a Tax Attorney Is Needed
When it comes to filing taxes or dealing with other financial matters, many people are unsure if they need a certified public accountant (CPA) or a tax attorney. In order to make an informed decision, it is important to know the difference between tax attorney vs cpa and understand the unique roles each plays in helping clients manage their finances.
CPAs are trained in accounting, taxation, and other financial matters. They complete a four-year degree program and must pass the CPA exam to obtain their license. CPAs provide services such as tax preparation, estate planning, business consulting, and more. They are experts in all areas of tax law and can help individuals or businesses with questions about filing taxes or other financial matters.
Tax attorneys specialize in legal aspects of taxation, including researching existing laws as well as drafting new legislation. They must possess a law degree and pass the bar exam for their state. They can provide guidance on tax-related issues or represent clients in court when dealing with IRS disputes. Tax attorneys are also able to help with estate planning, business formation, and other legal matters related to taxes.
Knowing which professional to seek out depends on the particular situation. For matters that involve complex tax laws and legal issues, it’s best to consult a tax attorney. If the issue is more focused on accounting or financial planning, then a CPA may be better suited to help. It’s important to do research before choosing a professional in order to make sure they are qualified and have experience with similar cases. The right professional can make all the difference when dealing with taxes or other financial matters. Never hesitate to seek out help from a professional if you’re unsure of how to proceed. Furthermore, if you can, it’s best to consult both a CPA and a tax attorney to get the most accurate advice.
Conclusion
The differences between a CPA and a tax attorney can be complex. While CPAs provide valuable services related to taxes, such as tax preparation and filing, they are not typically authorized to represent clients in court or advise on legal matters. Tax attorneys specialize in providing advice on all aspects of taxation law and often represent their clients before the IRS or other government entities. If you’re unsure about which you need or have any queries, don’t hesitate to reach out to us today!