Tax Lawyer vs. a CPA

Many businesses rely on a certified public accountant or CPA to manage their income, profits, taxes, expenses and everything else regarding their finances.  In fact, many individuals do this as well.  So, when it comes down to taxes, why should one obtain a tax lawyer rather than simply relying on their CPA?  This article will examine the question ‘tax lawyer vs. a CPA’ so that you can determine which route to take.

Confidentiality

One very important reason individuals choose to obtain a tax lawyer is confidentiality.  While you may trust your CPA more than you trust your own mother, he or she is typically not required to keep your financial matters and other information confidential. In fact, the past shows many cases where certified public accountants have gone to the authorities with information against their own clients in cases where the CPA thought his or her client was breaking the law.

A tax lawyer however, will be under the attorney/client confidentiality law, which protects you.  This means that he or she is not able to discuss your case, your finances or other privileged information with anyone – including law enforcement in most situations.

Legal Knowledge

While a CPA will know how your finances should be handled according to the law, he or she will not have such extensive knowledge as a tax attorney.  Tax attorneys know the ins and outs of the law – including staying up to date on statutes and requirements for both businesses and individuals.  The scope of knowledge must be taken into account here.  When you have a tax attorney, you’re able to receive advice and suggestions which are purely based on the applicable laws with the intent of protecting you.

Since many issues which come up regarding taxes will end up in a court of law, there is no one better able to prevent problems for you, protect you and prepare cases than your own tax attorney.

The Ability to Negotiate

Another great advantage of having your own tax attorney is the fact that he or she can negotiate with the IRS and others to stop you from getting penalties, etc.  Your CPA cannot and probably will not do that for you. Depending upon the type of issues you’re facing, your attorney will be able to keep you out of hot water and make sure that you’re always compliant with the law and within the boundaries of the law.  This is a huge help to you – especially since most individuals don’t have extensive information regarding tax laws and requirements.

Although CPAs are very beneficial and provide a lot of assistance to most individuals and businesses, nothing can beat the knowledge of a tax attorney or the benefits you gain when you have one to look after your best interests.  Use the information above to determine whether a tax attorney is right for you or not.