The Question
If you have a tax or other legal problem or need tax or other legal planning, which would be your best choice for representation or advice?
- A Tax Attorney?
- a CPA? or
- a Tax Attorney who is also a CPA?
The IRS is more than likely the most feared arm of the United States government. There are individuals who fear the IRS more than they do the FBI or the CIA. In facing this branch of the government, you will need a lot of help. While some people may advise you to get a Tax Attorney or a Certified Public Accountant, there are many reasons to consider a professional who is both: A Tax Attorney/CPA.
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Tax Planning
Generally speaking, Tax Attorneys are more creative and knowlegdable about tax law than are CPAs.
Another advantage that tax attorneys have over CPAs is a more subtle comprehension of the ambiguity and nuances of tax law. CPAs are trained to acknowledge something as either black or white. They're educated to categorize things very specifically and may not recognize the varying gray areas of tax law. A good tax law attorney knows that the law might have many different interpretations and uses this fact to your benefit. A tax lawyer considers the application of non tax law to help interpret tax law, just as higher level IRS representives and a Tax Court judge would.
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Defense Against the IRS
Attorney Client Privilege
Generally, there is no CPA client privilege when it comes to criminal tax matters.
Further, any client privilege that a CPA may have under the tax law will be limited, and quite honestly, usually not wholly understood by the CPA.
Privilege is a legal concept that is best understood and asserted by lawyers. CPAs are not lawyers. That means that the IRS can discover whatever you tell your CPA and vice versa if it has any potential criminal aspects whatsoever either at the time of audit or thereafter. Client privilege in the hands of a CPA is a weapon fairly useless for these reasons.
Unlike with CPAs, there is full Attorney/Client confidentiality. While a CPA may be forced to divulge any details concerning your accounts to a court, a tax law attorney is legally prohibited from doing so. Remember that this confidentiality may be extremely important during trials.
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Advocacy
Lawyers are trained to be advocates, whether in court, in appeals or negotiations. Can a CPA make this assertion? Do they represent clients in court, at appeals or in negotiations on a regular basis?
In addition, that advocacy frame of mind is always in gear when the tax attorney is doing tax planning for his clients. He is not, like the CPA, thinking 'how can I avoid giving controversial advice and keep myself out of trouble', but instead is thinking 'how can I interpret the law in a legal way to best legally save taxes for my client'?
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Complete Advice
A tax law attorney can also help you by giving you truly complete advice. This is as a result of the fact they are experienced in matters involving tax laws. A tax law attorney will be in a position to give you advice on different legal measures that you may take to work out your Tax problems. A CPA can just help you in terms of fixing your financial allowance or computing your taxes, but can supply very little help regarding how to plan for or mend your tax problems.
A tax law attorney, alternatively, can show you a great deal of things you should be able to do to minimize your taxes or to legally get the IRS off your back. A good tax law attorney can help you by giving you various tips on how to compromise with the IRS and finish up paying far less than what you may think is your due.
The IRS can use different systems to intimidate you into paying the quantity that they will insist you owe. People who are unfamiliar with the methods of the IRS often pay this amount without taking the time to question why. A good tax law attorney can help you get over your dread of the IRS and meet them on the legal battleground. A good tax attorney will have the resources essential to help you overcome intimidation tactics that the IRS may use to force you to pay.
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We are talking about Tax law after all
The best reason that you should hire a tax law attorney rather a CPA for tax planning or tax defense is the fact that taxes are established based upon laws. All the accounting knowledge in the world does not add up to what is involved in tax law. You need a lawyer to interpret the law and be your advocate, not a CPA. CPAs are by definition, not lawyers.
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The Tax Attorney who is also a CPA is possibly the best of all
The best choice of all would be the Tax Attorney who is also a CPA. Such an Attorney is one who not only does tax planning and defends taxpayers against the IRS, but also prepares tax returns. That is the best of both worlds.
Such a tax professional is going to have the most wide and in depth body of knowledge concerning tax law, tax planning, tax preparation, tax advocacy and defense against the IRS.
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The Tax Attorney/CPA who also practices Business, Estates and Real Property Law may be better yet
Further still, the tax lawyer who also practices in the areas of Business, Estates and Real Estate law will have the most well rounded perspective of how those areas and the thought process behind them impact the tax aspects, and just as valuably, vice versa. An Attorney/CPA such as that and who, in addition, in his CPA practice performs financial accounting services, will likely have the most creative, 'outside the box' and resourceful thought processes and approaches to problem solving and advocacy.
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Steve Yahnian Attorney/CPA could be the best choice for your tax needs
There are some Attorney CPAs. Steve Yahnian is an Attorney/CPA who perfoms all three tax services: tax planning and tax defense through YAHNIAN LAW CORPORATION and tax return preparation through his separate accounting corporation, YAHNIAN ACCOUNTANCY CORPORATION. Mr. Yahnian is also a Business, Estates and Real Estate lawyer as discussed elsewhere on this web site.
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