Practical Channels to Resolving Tax Issues as an Individual or Business

It is never easy handling tax problems, and when the taxman comes knocking, you must be ready to navigate the complicated world of taxation. While every call for a tax audit does not reflect an underlying problem or make you guilty, it has to be carefully handled. Every year the taxman reaches out to a small percentage of the taxpayers as they seek to have accurate information and minimize tax frauds. As such, there is always the possibility of receiving a notice for tax audits as an individual or business. This means that you must always be prepared to face the taxman every time the tax season approaches. As a rule, to avoid finding yourself on the wrong side of the law, adherence to your tax obligations is never an area for compromise.

Due to the difficulty of handling tax concerns alone, it is often advised to seek out professional assistance. Whether it is in preparation for an upcoming audit or handling tax debts, expert solutions may be unavoidable when up against the taxman. This is largely because the IRS and state tax agencies tend to employ the best minds in the industry. These state and federal agents understand their responsibilities, and have keen eyes for even the slightest mistakes. Attempting to face them alone generally puts you at a great disadvantage, giving them the upper hand right off the bat. Making the decision to pursue professional help is the right call, but you will have to make a choice, a tax attorney vs. CPA. To help ease your decision, consider these factors:

1. Both professionals have in-depth knowledge on taxation. A certified public accountant has the expertise to handle your books of accounts as it is their line of specialization. This includes vital aspects of taxes, which are derived from the financial records they have constructed. Generally, a CPA has what it takes to handle all those complicated numbers that make that appear on your paperwork. On the same note, tax attorneys have a deep understanding of taxation with a firm grasp of the ins and outs of the IRS tax code. It gets better considering that most attorneys work closely with in-house accountants, or have CPA qualifications themselves.

2. The two professionals have a mandate to abide by the state and federal laws. A CPA, as well as a tax attorney, is always expected to act in good faith in the law. The mandate of these professionals is guided by relevant rules and regulations that they leverage on for your benefits. However, for a CPA, this mandate is primarily tied to financial matters as they have no authority to act on legal issues. On the other hand, the mandate of tax attorneys is far-stretching as they can handle both financial and legal concerns.

3. Tax attorneys enjoy special attorney-client privileges. A CPA’s role is focused on ensuring the accuracy of the information presented to the taxman and can be summoned to explain the numbers. If there are serious errors or lots of pressure, the CPA can quickly become a government witness, in a bid to save their careers. In contrast, tax attorneys have special privileges that enable them to protect your interest without being arm twisted. Disclosures made to an attorney will, in turn, be safe compared to those made to a CPA. Therefore, when it is no longer a question of creating financial accounts but standing against the taxman, a tax attorney is the go-for professional.

4. A CPA cannot take any legal action, but a tax attorney has rights to this mandate. There are lots of instances when, as a taxpayer, a suitable solution cannot be instantly found by contacting the taxman. In such cases, legal courts are the only refuge, and it takes a certified tax attorney to handle this demanding legal process. Primarily, a CPA cannot file a legal case on your behalf or exclusively represent you in court while a tax attorney will be there the entire journey. The expertise of a tax attorney covers all aspects of tax crimes, and when charged with these cases, they are a trusted refuge. Seasoned tax attorneys will stop at nothing in keeping you from all the IRS traps and ensure the best outcome regardless of the issues at hand.