Instead, tax lawyers specialize in everything related to the IRS tax code, such as tax disputes, estate planning, business tax law, and more. As you can probably guess, a tax lawyer can provide you with the kind of highly experienced legal advice that a CPA cannot, ethically or practically advise you on. Tax lawyers should be hired if you need the help of an expert with a complex tax position. Tax lawyers typically focus on tax planning and the structuring of tax-motivated transactions.
Because they have a deep understanding of tax law and the tax code, including court cases and the legislative history of our tax laws, tax lawyers can often help you navigate complicated tax situations and factual patterns to minimize your taxes. Tax lawyers and public accountants are two different, but similar, professionals who can help you with taxes and financial planning. Learn what each one does and when you can ask them for help. Unlike a CPA, a tax lawyer doesn't do the numbers.
Few lawyers would know how to do their taxes to determine what they owe, at least no more than a layman. Your lawyer would also not be good at reviewing possible investments and advising you on them. Tax lawyers are involved in matters such as choosing the right legal entity, structuring the purchase or sale of a company, or dealing with specialized tax laws, such as international transactions. Often, you can schedule a free consultation with a prospective public accountant or tax lawyer to discuss your needs and determine your next steps.
This learning occurs during tax season, when they try to file as many tax returns as they can, since they are generally paid per return. Many tax lawyers also earn an advanced degree in tax law, which may require up to five additional years of study. While a tax lawyer's approach focuses on tax law and the many issues related to it, the work of public accountants covers other areas. However, tax lawyers are trained to handle legal challenges and can represent clients in the judicial system, whether clients file a lawsuit against the IRS or the IRS is investigating them for possible tax crimes.
Certified public accountants and tax lawyers can help you minimize your tax liabilities, but their participation in that process may vary. When the law isn't clear, or when it's not clear how to apply it to your financial situation, a tax lawyer can help you determine what to do. In this area, tax lawyers offer greater specialization in the legal issues of tax planning, while public accountants have more experience in the financial implications. One difference between a tax lawyer and a CPA is that tax lawyers don't usually prepare tax returns, although they can provide legal advice on how to complete specific aspects of a return.
Both certified public accountants, known as certified public accountants, and tax lawyers are available to individuals and organizations trying to navigate the often confusing universe of taxes. When it comes to serious issues related to tax law and to avoid problems with the IRS, such as avoiding taxes on accounts or initiating a criminal investigation, it may be advantageous to hire an experienced tax lawyer who has more experience dealing with tax law and state and IRS tax bureaucracies. It's common for tax lawyers to be able to handle the business side of transactions just as commercial lawyers would.
