How do you what type of tax professional is right for you?
When it comes to hiring a tax professional it may be difficult to understand who to choose. IRS circular 230 sets forth the rules as to who can represent a taxpayer. Attorneys, CPAs, and Enrolled Agents (EA) are all authorized to represent taxpayers before the Internal Revenue Service. However, only an attorney can represent taxpayers in Court. (Note, that US Tax Court does have a special exam for non-attorneys which allows CPAs or EAs to obtain a license to represent taxpayers before that Court).
- A Certified Public Accountant is trained in accounting and must pass a rigorous State exam and education requirements.
- An Enrolled Agent is a tax professional authorized by the Internal Revenue Service.
- An Attorney is licensed to practice law in the State or States for which they are licensed.
- A Tax Attorney holds a masters law degree in taxation (LL.M). The LL.M serves as a secondary degree, a masters of law, for lawyers who have achieved their J.D., and who are interested in a focused, specialized course of study in a specific topic of law, here, Taxation.
While CPAs are authorized to represent clients in IRS disputes, they typically do not have the training or experience that a tax attorney would have when it comes to representing a client. 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, case law and tax procedure.
Only an Attorney or Employee of a Law Firm Can Offer Confidentiality and Attorney-Client Privilege
Tax attorneys also offer one major benefit that a CPA does not: confidentiality. Any 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 civil fraud matters, criminal charges, or any other reason you wish to prevent conversations with your tax expert from being used against you.
Moskowitz LLP offers comprehensive tax representation
A client of Moskowitz LLP has the benefit of retaining a tax law firm that employs Tax Attorneys, CPAs and Enrolled Agents. These tax professionals typically work together on your matters. This team approach provides our clients with the resources to understand the intricate details of your company’s balance sheets, advise on business structure to reduce tax liabilities, and clean up accounting and tax mistakes of the past.
Additionally, you may be able to save money in the long run by hiring a team with the knowledge and expertise to advise on both important business decisions while still performing the routine tasks of keeping your taxes and finances running smoothly and ensuring your taxes are professionally filed.
Moskowitz LLP is a tax law and accounting firm that has dedicated over 30 years to representing individuals and businesses with civil and criminal tax problems, cleaning up accounting and tax messes, and providing tax and accounting advisory services. We offer practical and affordable tax and accounting solutions, business services, estate planning and administration. Our tax professionals and attorneys have the hard-earned knowledge and real-world experience to take on any tax challenge. Our mission is to strengthen bottom lines and to lengthen company lifespans. We like to say that we’re in the business of keeping businesses in business.
Remember, a blog post or email blast is not a substitution for obtaining personal legal and tax consultation. This information is not intended to be legal or tax advice nor does it form an attorney-client relationship between us.