Business & Finance Taxes

Tax Attorney Vs. CPA

    Tax Attorney

    • Tax attorneys must complete advanced education degrees to be eligible to take the Bar exam. Attorneys are licensed and governed by state regulatory boards -- each state operates an independent bar association, which means bar exam content may vary. Each year, an attorney must register with his state of licensure as well as complete mandatory continuing education requirements to maintain active status. A tax attorney can prepare your business and personal tax returns, and represent you before all divisions of the IRS. A tax attorney may represent you in tax court without additional examination, but he must first apply for admission to practice with the United States Tax Court.

    CPA

    • CPAs are also licensed and regulated by state authority. A CPA is generally eligible to take the CPA examination, after completing a bachelor's degree program, although some state boards of accountancy require the candidate to complete additional credit hours before taking the exam. Similar to the attorney designation, a CPA must complete continuing education credits and periodically renew his state license to remain an active CPA. A CPA can prepare your tax returns and represent you before the IRS. Accountants are educated in various areas of record keeping with which tax attorneys or enrolled agents may not have familiarity.

    Enrolled Agent

    • The enrolled agent (EA) designation is not as well known as the tax attorney and CPA titles. An active EA can prepare tax returns and represent clients before any division of the IRS. An EA may not represent a client in tax court; however, most IRS issues are resolved outside of court. To receive EA status, a candidate must successfully pass three parts of a comprehensive exam administered by the Internal Revenue Service. The exam covers all IRS areas of taxation and includes individual income tax, business tax (for all structures), gift and estate tax and IRS collection procedures and taxpayer representation. Similar to the tax attorney and CPA designations, an EA must complete continuing education credits each year and must adhere to IRS ethics requirements provided in Treasury Circular 230.

    Specialization

    • Overall, the blanket difference between these professional tax designations is the government agency that monitors and regulates the individual licensed to practice. If you're in need of professional tax help, consult with the professional you're interested in hiring to determine if your needs can be met through her services. Many tax professionals specialize in a certain area of taxation although they can legally complete multiple lines of work. For example, a CPA may specialize in reconstructing records for an audit while a tax attorney may specialize in negotiating tax debt. Make sure you discuss your needs thoroughly before hiring anyone and make sure you understand the process required by your case and the fees involved for service.

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