When to lawyer up
I met with a tax attorney today, and it reminded me -
A lot of folks don’t actually know what a tax attorney does,
Or how that’s different from a CPA.
So here’s a quick breakdown to help you figure out who to call when:
A CPA is your go-to for all things routine and accounting-oriented:
Ensuring your books are set up and recording transactions correctly
Preparing and filing certified tax returns
Helping with tax compliance and strategy
Preparing reviewed or audited financial statements
Advising on state and federal tax registration issues
If you need a stamp of approval or are navigating tax code,
This is your person.
A tax attorney, on the other hand, is who you call when things get more serious or sensitive.
You’re being audited.
You’ve got major back taxes.
You’re setting up a complex business structure.
You’re in a dispute with the IRS.
They understand the tax code and how to navigate legal issues.
Plus, they offer attorney-client privilege, which CPAs don’t.
That matters more than you'd think when things get messy.
(Aka, CPAs can be compelled to testify against you 😬)
The simplest way to think about it?
A CPA keeps you out of trouble.
A tax attorney gets you out of it.
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