Many clients of mine have asked the difference between Tax Attorney vs. CPA and questioned why they would need a tax attorney than CPA. Why?
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 and case law.
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 criminal charges from the IRS and you wish to prevent conversations with your tax expert from inadvertently being used against you.
What are the potential benefits from hiring a professional who is a dually-certified Attorney-CPA?
Not only do dually-licensed Attorney-CPAs have the financial background to understand the intricate details of your company’s balance sheets, but they are also able to advise on business structure to reduce tax liabilities and hopefully help you avoid any trouble with the IRS.
Additionally, you may be able to save money in the long run by hiring one professional who has the knowledge and expertise to advise on both important business decisions while still preforming the routine tasks of keeping your finances running smoothly and ensuring your taxes are professionally filed.
With the improved value of a tax attorney and CPA rolled into one professional, it is easy to see why small businesses would benefit from hiring a dually-certified Attorney-CPA.