Tax Attorney vs. CPA: Why Not Choose is Both?

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Tax Attorney vs. CPA: Why Not Choose is Both?

Whether you need a professional to assist with tax issues on personal or business-related concerns, it can be difficult to determine which expert best fits your needs. The most reliable professionals to aid you with tax problems are the tax attorney and the CPA. Both of which offer different — though often overlapping — services.

Tax attorneys and CPAs can both assist with your tax needs, yet there are limitations to what roles they can play on their own. Therefore, hiring a team that includes a tax attorney and a CPA is the smartest way to go. They can provide a more comprehensive level of service.

The role of a tax attorney

Tax attorneys are lawyers who have gone through law school, passed their state’s bar exam and emphasize tax issues in their practice. They are primarily trained to help minimize a business’ tax liability through the structuring of assets or to represent them through tax-related litigation. If you are facing an audit with the potential for harsh penalties, a tax attorney would be the better choice due to their negotiation skills and intimate knowledge of legal principles and case law.

Tax attorneys also offer one major benefit that a CPA does not — confidentiality. Information you provide your tax attorney is protected by client-attorney privilege, meaning they cannot be forced to testify against you. This offers a distinct advantage if you are dealing with possible criminal charges from the IRS.

The role of a CPA

CPAs are educated in a broad range of accounting fields. From auditing and taxation to bookkeeping and business strategy, CPAs are versatile financial planners. CPAs are a great choice for year-round financial recordkeeping and tax preparation.

A CPA is one of your best options when it comes to filing at tax season, they can also serve as a principal advisor for many different financial decisions, including estate planning, investment and real estate advice, certain IRS problems and more.

The benefits of working with both

Both tax attorneys and CPAs have the financial background to understand the intricate details of your balance sheets and are able to advise on business structure to reduce tax liabilities.  If you run into any legal trouble regarding your tax filings, it is crucial to have a team that includes an attorney and CPA to represent you due to their knowledge of your business’ financial records and their litigation training.

The professionals at Anthony J. Madonia & Associates, Ltd. create a team dedicated to guiding you through the tax preparation process and protecting your assets along the way.