Tax season is a difficult time for business owners and many taxpayers. Whether it is your first year of filing taxes or the debt has added up in general taxes, you can always get help. There are many different options available if you want to entrust your tax case to a professional proficient in tax knowledge and understand the tax filing system and other do’s and don’ts that have to do with tax.
The feasible options available in the market are a certified public accountant, and the second one is a tax attorney. Now, who is best for you among CPA and tax attorneys depends upon your needs and goals. Another thing to keep in mind is the Internal Revenue Service (IRS). What is your case-sensitivity level with the IRS? Tax debt can be a massive problem, so you must have a professional service to get you out of this financial problem.
Who Is a Certified Public Accountant (CPA’s)?
CPA has years of business degrees as well as hours of education. They are much more knowledgeable and fluent in the subject. They have to pass a problematic CPA exam. A CPA has complete familiarity with the tax system and have expertise in dealing with complicated tax situations. They are professionals who have training, skills, and education under their belt, and they are also much more experience in tax planning.
For complex tax problems, CPA is your best bet. As mentioned, they are fluent in tax matters and can help you come out of any troubling situations. Here, the problematic situations mean that if you are divorced, have children, or start a business with high investment, you need to consult a CPA to manage and prepare your taxes.
CPAs are familiar with all the federal laws and can give you an advantage in any tax filing over a regular tax attorney. So, spending a little extra money on a CPA can affect your income positively.
A CPA can also help you in tax management. A CPA can prepare a long-term tax plan and enables you to manage liabilities and other shortcomings. A CPA can provide you yearly and monthly accounting services and help you pay periodical taxes, make a financial strategy, and conduct audits.
What Is a Tax Attorney?
A tax attorney can be hired as per the needs and requirements of an individual. Tax attorneys have different educational backgrounds, and you can choose the one that concerns your problem. For instance, if you have any property or real estate tax-related issue, you should consider an attorney in that particular field.
The crucial thing to mention here is the tax attorney is an expert in resolving tax troubles and tax issues with the authorities. Tax lawyers have a lot of education and experience, and they can go against IRS and other institutions in case of tax fraud or any issue.
In general, a tax attorney can help you with unfiled taxes, wage issues, not doing property liens, and account taxes. So, if you are going through financial troubles, you need to hire a tax attorney for further assistance.
Tax Attorney vs CPA? Who is Best for You?
Who is better among CPA and tax attorney depends upon the type of help you need? So before making a final decision, you must consider the tax matter at hand. Are you in complicated personal or business taxes, and you want to reduce or lower tax liability? Then the best option would be CPA. If you have any issue with the authorities or got a tax debt notice, or are involved in any tax controversy, you need to hire a tax attorney.
So, first, analyze the problem at hand and then make the decision accordingly. Don’t just go to save money. Otherwise, you could lose much more than what you are looking to save. A tax attorney is also helpful in case the IRS has assigned a revenue officer to your lawsuit.
A revenue office means that you can get the levy on your finances or you pay. In such a scenario, a tax lawyer can help you develop a plan and give you sound financial consultation on how to stay out of trouble.