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“Should I hire a tax lawyer or a CPA?” is a question asked by many. But unfortunately, there is no one-word answer to this. It depends upon what kind of help you want. If you need to get your tax returns reviewed, conduct tax planning, or get accounting work done, then you probably need a CPA. On the other hand, if you need to resolve any complicated tax matter, need legal representation in court, resolve tax debt, or handle civil and criminal tax cases, then using a tax lawyer’s services is the better choice.
What Does a CPA Do?
Individuals and companies hire Certified Public Accountants (CPAs) to plan their financial and tax strategies to limit their tax liability. CPAs also prepare and file tax returns and conduct reviews of tax returns and other tax documents in case of an IRS audit. They also do accounting tasks.
A CPA may have specialization in a specific field of accounting. A CPA with a tax accounting specialization is your best choice if you wish to use their services for that particular tax problem.
What Does a Tax Lawyer/Tax Attorney Do?
Tax attorneys are experts in tax laws and the tax code. They can better handle a complicated tax issue because of their in-depth knowledge about tax laws and IRS rules, as well as litigation experience. Being a lawyer, a tax attorney can represent you before the IRS and also in court.
In back tax resolution cases, a tax attorney can act on your behalf and conduct all communications with the IRS, whether through mail or in-person. Since tax attorneys have specialization in taxation, they are fully capable of handling even the most difficult tax debt cases.
Tax attorneys may specialize in certain fields of taxation, such as corporate tax or tax debt resolution. If you are looking to resolve a tax debt issue, you may choose a tax attorney specializing in tax debt resolution.
When Should I Hire a CPA?
Before you hire a CPA for a tax problem, make sure that they have a taxation specialization and have at least some experience holding talks with the IRS. A CPA who only prepares returns or does accounting may not be competent to handle complex tax issues.
In case of an IRS audit, a competent CPA can help you review and prepare your tax returns and other tax documents for the audit. Since a CPA can represent you before the IRS, he or she can hold talks with the IRS on your behalf in an in-person audit. However, you should choose only a CPA who has sufficient knowledge and experience in this area to represent you before the IRS. Choosing the right person is paramount because even a small mistake before the IRS can cause unnecessary delays, complications, and financial loss.
Since a CPA’s area of expertise is usually restricted to tax return preparation and accounting, you can hire their services for tax problems related to tax returns, other tax documents, and accounting.
Tax attorneys are specialists in tax-related matters. They have the educational background, training, and experience in taxation, allowing them to resolve complex tax matters for individuals and corporations.
Since a tax attorney is a lawyer, they provide legal advice and prepare legal documents for a tax case. In complex tax matters, such as if the IRS has seized your bank account or property for recovering back taxes, a tax lawyer can help stop the lien and achieve a favorable resolution of the tax debt.
You can also seek tax advice from a tax attorney. For instance, you received an IRS notice such as CP503, which informs you that you owe taxes. You want to resolve the matter but cannot afford to pay the entire amount you owe. In such a case, you can seek advice from a tax attorney about how you should proceed. Your tax attorney can provide you with assistance in getting tax debt reduction after reviewing the particulars of your case.
Also, an attorney can help you with an IRS audit. You can grant your tax lawyer a Power of Attorney, after which your tax attorney will respond to all IRS communications for you and speak to them in-person if requested by the IRS. Before you grant this power to your tax attorney, it’s best to conduct a thorough background check on the company or the lawyer you are hiring to ensure that they are legitimate and honest.
Which is Better for Me: a Tax Lawyer or a CPA?
If your tax case is simple and limited to sharing your tax documents with the IRS, and reviewing your returns and accounting issues, then hiring a CPA will suffice.
On the other hand, there are some situations where a tax lawyer becomes necessary. Is the IRS conducting an in-depth tax audit? Do you owe a substantial amount in back taxes? Are you unable to pay back your IRS debt? Do you wish to challenge the IRS in a tax court? Do you need a resolution for any complex tax problem? If you answered yes to any of those questions, you need a tax lawyer to represent you.
Along with CPAs and tax attorneys, enrolled agents can also represent taxpayers before the IRS. The status of an enrolled agent is the highest credential the IRS awards. To become an enrolled agent, the person needs to pass a comprehensive IRS test or be a former IRS employee. Also, in order to remain an enrolled agent, he or she needs to complete 72 hours of continuing education every three years.
Depending upon your tax problem, you can use the services of a tax attorney, enrolled agent, or a CPA to resolve it. Each has their area of specialization. Depending upon the problem for which you need a solution, you can choose the appropriate professional to resolve it.
If you are having trouble deciding, you can use our free consultation and discuss your tax problem with us. We will help you to choose the right professional so that you get the right start towards resolution.
Solvable is a for-profit company that helps customers resolve their tax problems, but a free service for consumers. Partners cannot pay us to guarantee favorable editorial reviews or ratings. We do not publish favorable (or unfavorable) editorial reviews or assessments at the direction of an advertiser or partner. We always work to put consumers first and do our best to provide value in meaningful ways, but our reviews are subjective.
How We Make Money
Solvable is compensated by some of the companies seen on our website. Most often, Solvable receives fees when one of our readers clicks, fills out a form, applies for, or receives a financial product from one of our partners. We also earn fees for capturing consumer stories and writing about them, displaying advertising, having our partners sponsor certain parts of the site, and writing content that may be relevant to our partner and their audience. This compensation may impact where products appear on this site, including article pages, comparison listings, the order in which they appear or if they will even appear on a given page, and our matching recommendations. Solvable has not written about, reviewed, or rated all financial products available to consumers.
In addition, we may be compensated in the following ways:
Referrals to consumers who use the online form or locator line that may provide expert answers to questions;
Marketing tax resolution, tax preparation, tax audit help and general tax assistance.
Referrals to services that help consumers with tax resolution, tax preparation, tax audit help and other tax issues.
We do recommend that you shop around and compare services and costs with other companies while performing your own due diligence, especially since people’s experiences with companies can change over time.
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The offers that you are matched up with are from companies or attorneys/law firms that we may receive compensation from. Based on our initial review of such companies or individuals, we feel comfortable introducing them to our readers. We won’t recommend something just because we’re offered payment to endorse or promote it. However, we do recommend that you shop around and compare services and costs with other companies while performing you own due diligence, especially since people’s experiences with companies can change over time.
We are not attorneys and we don’t provide legal advice. As always, we encourage you to do your homework and check out individuals and companies before you hire them. If you are already working with an attorney, we urge you to ask them your questions. After all, they will be familiar with your situation and the laws in your state.
We hope that you find Solvable helpful in your efforts to get a fresh start.
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Be sure to speak with your representative about the actual term and rate you may qualify for based on your credit history and ability to repay the loan. Lenders may charge an origination fee generally around 1% of the amount sought. Be sure to ask up front about all fees, costs and terms associated with each loan product. Loan amounts of $1,000 up to $35,000 may be available through participating lenders or affiliates; however, your state, credit history, credit score, personal financial situation, and lender underwriting criteria can impact the amount, fees, terms and rates offered. In some cases, lenders may require that you have an account with them already and for a prescribed period of time in order to qualify for better rates on their personal loan products. Ask your representative for details.
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All credit card rates, fees, and terms are presented without guarantee and are subject to change pursuant to each Provider’s discretion. All reasonable efforts are made to provide and maintain accurate information. There is no guarantee you will be approved for credit or that upon approval you will qualify for the advertised rates, fees, or terms shown.
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Business Loans Advertiser Disclosure
Business Loan offers that appear on this site are from companies or affiliates from which solvable may receive compensation. This compensation may impact how and where products appear on this site (including for example, the order in which they appear or whether a lender is “featured” on the site). solvable does not include all Business Loan companies or all types of offers available in the marketplace.
Business Loans are those loans that are for commercial use and any property and/or proceeds from the proposed request will be used by the requestor for commercial purpose only and not for any personal, family or household purposes.
Most of our Business Funding Partners or affiliates, do not require collateral for business loans; however, please note that it is possible to be offered another product by the lender depending on your needs and if the underwriting requirements dictate the same. Traditional bank and SBA loans generally are known for collateral requirements.
There is no one-size fits all business loan. Rather there are several types that will likely be offered and or discussed with you upon completing your request. Business Funding Partners determine the underwriting criteria necessary for approval, you should review each Partner’s terms and conditions to determine which business funding option works for your business’s financial situation. All reasonable efforts are made to provide and maintain accurate information. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each Partner’s discretion. There is never a guarantee your business will be approved for credit or that upon approval your business will qualify for the advertised rates, fees, or terms shown. Lender terms and conditions will apply and all products may not be available in all states. Ask your loan representative for details.
Student Loan Refinancing Advertiser Disclosure
Student loan offers that appear on this site are from companies or affiliates from which solvable may receive compensation. This compensation may impact how and where products appear on this site (including for example, the order in which they appear or whether a lender is “featured” on the site). solvable does not include all student loan companies or all types of offers available in the marketplace.
Pursuant to the contracts between solvable and the Partners or affiliates on its Network, solvable may also receive information from the Partner or affiliate regarding the status of your application including, but not limited to, the amount or disposition of your loan. Information specific to the Partner/affiliate’s use of your information will be found in their specific Privacy Policy.
Potential savings may vary based on the interest rates, balances and remaining repayment term of the loans you are seeking to refinance. Your overall repayment amount may be higher than the loans you are refinancing even if your monthly payments are lower. Variable rate options will fluctuate over the term of your loan with changes in the LIBOR (or other index utilized by the lender) rate, and will vary based on applicable terms and presence of a cosigner. Fixed interest rates may be based on applicable terms and presence of a co-signer. Additional terms and conditions, and rates are subject to change at any time without notice and may not be available in all states or for all types of current student loans. Such changes should only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Lenders are required to provide every potential borrower with disclosure information before they apply for a private student loan. The Lender you select is required to provide you with an Application Disclosure and an Approval Disclosure within the application process before you accept the terms and conditions of your loan. solvable is not a lender or creditor, it does not offer, extend or alter credit terms. Only participating lenders can perform the full application and deliver the required disclosures, please ask your lender about rates, terms, fees, and potential discounts that may be available for each product.
Please Note:
Certain federal and private student loans may not be eligible for consolidation/refinance.
Certain consolidation/refinance plans may result in higher monthly payments or negative consequences (i.e. prepayment penalties).
Consolidation/refinance may lead to other negative results, such as loss of grace periods.
Loans in default generally cannot be consolidated until completion of a repayment trial plan so tell your lender if you are in default and determine relevant options (be wary of those asking for upfront fees as well)
Other options or programs may fit your needs (i.e. personal loan, debt consolidation and/or debt relief). Consult your financial and/or tax advisor prior to making any decisions.
Solvable is not a creditor as it does not offer, extend or alter credit; rather it is an online market lead generator that allows consumers to shop and compare rates, terms and costs associated with financial products such as mortgages, auto loans, personal loans, student loans, etc. solvable does not originate or fund any product it markets; rather it has a network of lenders or Partners/affiliates. You may choose to speak with one or more of these lenders or Partners/affiliates to determine what your actual terms and savings may be. Only a lender can provide you with a formal application for credit, your inquiry form here is merely an expression of interest and/or intent to obtain credit or assistance. You must discuss your actual credit situation and fill out the lender’s required documents prior to obtaining an extension of credit. Network lenders may not have the best or the lowest rates so you are encouraged to continue to shop and compare additional lenders, credit unions, local financial institutions, etc. to ensure you are truly getting your best deal for your situation.
You should contact your tax professional or other financial advisor to determine if you can actually realize savings by refinancing when it can extend the life of your current loan. You should ask the lender about all terms, rates, fees and costs associated with each product and if you will realize a net tangible benefit from the same. All initial estimated savings is done by trying to calculate what your rate may be; however, solvable does not have that information and cannot guarantee potential savings or that lenders will approve you for such product that would warrant those savings. Rates are not guaranteed and change daily. Lenders/Brokers/Dealers/Partners that perform the actual underwriting will have to determine if you meet their underwriting criteria which is unknown to solvable at the time of matching/offer/quote delivery. All amounts are estimates and examples only and do not represent an actual offer.
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