With the myriad of regulations and laws that govern income tax filing It's easy to be overwhelmed. This is the reason why so many Americans seek out a professional to help them navigate tax preparation and tax resolution. However, there are many different types of tax experts that are available. And while they all offer a variety of services however, they differ in important ways. If you require tax assistance take into consideration both the help you'll need and the amount you'll be willing to pay for to determine if you can afford tax attorneys as well as an accountant and an registered agent.
Tax Attorneys
Tax attorneys are lawyer with a specialization on tax laws. That is, he is knowledgeable about the federal, state, and local laws and is able to help you understand the intricacies of tax law in an IRS audit or settlement negotiation or other tax resolution processes. Tax lawyers can assist you in negotiations with the IRS and in court. In addition, when you work with a tax professional, you'll enjoy attorney/client privilege. What you talk about with your tax professional is confidential. If you think your tax issues could result in legal problems or you require legal advice A tax attorney could be your best option.
Certified Public Accountants
A CPA is trained and certified to help you with your finances. CPAs that specialize in tax advice can not only know tax codes in and out, but they can review your financial records to find mistakes in calculations and help you when dealing in dealings with IRS. Although tax attorneys generally aren't able to assist in tax filing and preparation accounting, accountants can help in this regard. A CPA may also provide tax resolution services, but they are not able to represent you in legal court. Furthermore the CPA might be able give advice on money management as well as help you budget your the future purchase of goods and services as well as assist in other issues related to financial planning.
Enrolled Agents
A registered agent is approved and trained with IRS Internal Revenue Service to help taxpayers. A large portion of the enrollees are ex- IRS employees, however non-employees are also able to complete the required training and exam to be an enrolled agent. Enrolled agents can help you file your tax return as well as represent you during the course of an IRS audit (but not in court) and also discuss methods to settle tax disputes. However, you shouldn't consult an enrolled agent to get financial advice or legal advice.
Naturally, there's plenty of overlap among these tax experts, but another factor that can be a major factor in whom you choose to seek tax assistance is the amount you can afford. The more specific the knowledge the expert is, the more expensive the cost of his or her services could increase. Therefore, the services of an tax attorney can cost more than an enrolling agent. If your interactions in dealing with IRS are easy and you do not require any assistance with money management or attorney/client privilege A registered agent will be able to offer the help you require. In each tax relief situation consider the exact tax assistance you require and the amount you're willing to pay prior to making a decision.
Oswald Hermit is a senior Internet marketing strategist at Prospect Genius, a leader in online local advertising. He writes about the financial world.