Enrolled Agents vs Tax Lawyers

Dealing with tax problems entails a good amount of hard work and stress, which is why it is not advisable to deal with such problems on your own. It requires that you have a fair understanding not only of the taxation process but also of how the IRS operates. Trying to gain such understanding is quite stressful in itself; much more is attempting to apply it to resolve your tax issues with the Internal Revenue Service and get tax relief. The sheer complexity involved in taxation and tax problems is what drives a lot of individual taxpayers and businessmen to approach a tax lawyer for assistance. While it is commendable that these people accept the need to seek assistance with their tax problems, they don’t always ask for help from the right tax relief professional. A tax attorney is not always the best person to seek assistance from when it comes to tax problems. Since it’s not a legal problem, but a tax problem, the IRS and State simply wants to know when your delinquent tax returns are going to be filed and when & how your taxes are going to be paid. What you need is a professional advocate who has the knowledge of the enforcement and collection procedures of the IRS, the State Franchise Tax Board and who has the specialized experience to effectively resolve these tax issues in your best interest.

Profile of the tax attorney

This is not to say that tax lawyers are not suitable for any kind of tax problems. If you are being accused of criminal matter, tax evasion, tax fraud, or any other serious tax related crimes, then a tax lawyer is your best bet for defense. Tax lawyers are also the best people to seek help from if you or your company wishes to sue the IRS for any wrongdoing.

What exactly is a tax lawyer? Tax attorneys are attorneys-at-law who specialize in tax and tax related laws. They, like other kinds of practicing lawyers, holds a Juris Doctor degree and have passed the bar exam provided by the state where they hold practice. Aside from standing as counsel on your defense, a tax lawyer can also perform other functions such as provide tax advice and assist in tax preparation. There are, however, certain limitations to what a tax attorney can do for you. For one, tax lawyers are only allowed to practice in the state where their licenses were issued. Also, tax lawyers are not guaranteed to have a broad understanding of how the IRS operates – what a tax attorney can promise for certain is only understanding of tax laws of his respective state and the federal government.

Then again, you can by all means still hire a tax lawyer to help you with your tax problem. This move makes perfect sense if you are a big corporation or a rich individual taxpayer who would not miss paying upwards of $500 (and possibly much more) per hour plus all other costs – because that is how much good tax attorneys charge nowadays.

The more reasonable and appropriate option

In the case of the majority of individual taxpayers and businesses who have more plans for their hard earned funds than on spending them on extremely high attorney fees, there are other tax professionals that can provide the same or even better service than tax lawyers. On top of this list are Enrolled Agents; they are your professional tax advocates. Enrolled Agents are tax professionals certified by the IRS to represent clients in tax proceedings, hearings, audits, appeals and other tax related scenarios. By a far cry, Enrolled Agents are the best type of tax processionals that individual taxpayers and corporations can approach for assistance with tax relief and tax problem resolution. This is because Enrolled Agents have the most extensive experience when it comes to dealing with the IRS and like attorneys, are knowledgeable with even the most complex of tax laws. So, the next time you are faced with any tax problem, save yourself from worry, complications, and high cost by choosing a qualified and experienced Enrolled Agent that specializes in tax relief and tax problem resolution to assist you.

How to Fetch Reduction on Tax With the Help of a Tax Advocate

Filing income tax is a huge responsibility of every citizen and must be done with a lot of caution. One must be wary of investments and plan ahead so as to make the most out of the tax exemptions available. However, considering the busy schedule of many, people generally give it a miss and do not focus on investments till the time of filing the taxes.

Importance of tax advocate

To avoid the last minute rush and help us save money from paying unnecessary tax, the tax advocates are there to make our lives easier. They act as the interim between the government and the tax payers. They represent the people of the nation and present valid proposals to the government on improving the policies. One can save a lot of money by approaching them. Nobody knows the process like they do. Hence, they understand where most of us lose out on our money in tax and help us save them. Most of their services are free and is available at the click of a mouse.

The cumbersome process of tax payment

Most of the times, the problem with paying taxes is that one is not aware of what purpose they are paying for. As a result, this causes a lot of compliance issues and many citizens do not even bother to pay their taxes on time even after several reminders and deadlines. One must take responsibility of paying the taxes on time and consider paying it as a rightful duty of a citizen of that nation.

Refunds can be a delaying process after one has paid their process on time. Sometimes, one would have paid excess tax than what is necessary. Thanks to tax advocates who help in getting the refunds on time. Now days, one can also seek advice from various experts through the internet and find various investment options to park their hard earned money. That is not all! The Tax Advocate also helps thousands of people with their tax problems and help in fixing their problems with the best possible solution.

Planning ahead and investing right

The best solution to avoid huge taxes and pay them on time is a systematic investment plan. Get to know the various sections and start parking your savings under the specific tax schemes to save money. Also, one must not wait until the time of filing returns to plan for the same. Then it would lead to unnecessary tax expenditure every month till the end of the financial year. It does help to hire a good auditor or avail the services of tax advocates to make our lives easier and also avoid spending unnecessarily. As a dutiful citizen, it is also our responsibility to spread the message to our friends and colleagues to pay their taxes to the government on time! Please spread the word and plan ahead to save a lot of time, money and effort.

CPA, Tax Attorney, or Enrolled Agent: Which Pro Is the Right One to Take on Your Tax Troubles?

Anyone can print up a business card proclaiming to be a tax expert. But for honest-to-goodness guidance in such complicated tax problems as back tax resolution, tax settlement negotiations, IRS audits, and the like, you need a tax help practitioner with the specialized training and skills to match your situation.

For the most part, today’s tax professionals are differentiated by the government agency that monitors and regulates their business and by the type of tax problems they handle in their practice. While the services they provide can overlap at times, the three types of tax advisors that have standing to appear in place of a taxpayer before the Internal Revenue Service are enrolled agents, certified public accountants, and tax attorneys.

Probably the least recognized of the three, enrolled agents are federally licensed and authorized by the U.S. Department of Treasury to represent taxpayers before the IRS in a number of pertinent tax issues, including audits, collections, and appeals. To earn the title of enrolled agent, an individual must successfully pass a comprehensive exam given by the IRS covering all aspects of the tax code. Enrolled agents are also required to complete at least 16 hours of continuing education each year and adhere to a strict code of IRS ethics. Many enrolled agents limit their work to a specific tax area, though, so if you consult this type of practitioner, be sure to inquire about his or her area of expertise. You can learn more about enrolled agents by visiting the Web site of the National Association of Enrolled Agents at naea.org.

Certified public accountants or CPAs are the second category of tax professionals with the credentials to appear on a taxpayer’s behalf before the IRS. Licensed and regulated by the states, a CPA must pass a state’s qualifying accounting exam, earn continuing education credits, and periodically renew his or her state license to remain in active practice. Considering their expertise in accounting and bookkeeping services, CPAs are usually recommended to prepare tax returns and may offer the best guidance when it comes to record keeping and the complex financial situations caused by lifestyle changes such as divorce, retirement, and closing a business. Not all CPAs are skilled in taxation matters, however, so remember to review each practitioner’s experience and knowledge when seeking a tax advocate. The Web site of the American Institute of Certified Public Accountants, aicpa.org, is a good resource for additional information.

The last of the practitioners with standing before the IRS, but certainly not the least, is the tax attorney. As the name implies, a tax attorney is a lawyer who specializes in taxes. Armed with advanced degrees and the backing of state bar associations, tax attorneys come with a higher fee but they can prepare sophisticated personal and business tax returns as well as provide a far more in-depth understanding of intricate tax laws. In particularly complex legal areas of taxation, such as structuring a business, tax settlement negotiations, or criminal tax matters, that deeper level of advice can be critical. And, as the only type of tax advisor empowered with attorney-client privilege, a tax attorney can provide an extra layer of security for your personal and business tax matters. To get a list of reputable tax attorneys in your area, check with the local chapter of your state bar association.

Whether your tax issues are state or federal, personal or business, they should never be taken lightly. Neither should your choice of a tax professional. So don’t make a decision until you’ve done your homework. Consult with each type of tax practitioner and determine which one fits your circumstances as well as your comfort level. Because knowing the differences in advisors could make all the difference for you.