Tax Tips: Do You Need A Tax Attorney Or A Cpa To Solve Tax Problems?

Taxpayers have several options when they are confronted with a tax situation. Some of these tax situations include an official notice, overdue tax returns, tax liens, wage garnishment or appeals. The tax matter could be as simple as a tax return preparation or as severe as an investigation for tax evasion by the CID (the criminal investigation division of the IRS). Under the Taxpayers Bill of Rights, a taxpayer is entitled to have a professional deal with any IRS issue.

Selecting the right tax professional can be your best option to effectively solve any pending tax issues. This could be different for different circumstances. Tax professionals have considerable experience dealing with IRS tax situations and thus can offer valuable tax tips and can effectively represent the best interests of the taxpayer.

The purpose of the IRS is to assess and collect taxes which to some is a mandate to harass and intimidate a taxpayer. That tactic will not work when a tax professional is there to act as a buffer between the taxpayer and the IRS or Franchise Tax Board. In addition, the tax professional often knows as much or more about tax law than the IRS agent.

There are three categories of tax professionals:

1. Enrolled agents a tax preparer and tax advisor licensed to practice before the IRS.
2. Certified Public Accountants (CPA) state licensed professionals with considerable expertise in taxation, accounting and auditing.
3. Tax attorney represent clients with more complex areas of tax law such as appeals, court appearances, tax planning or tax evasion.

There are several advantages to selecting a tax attorney over a CPA when dealing with severe tax problems. For instance, only a tax attorney can provide attorney-client privilegethe right of an attorney to refuse to divulge confidential client information. It is a very important legal concept that keeps communication between an attorney and a client private. This allows the taxpayer to be more candid with the tax attorney. These privileged communications cannot be used as evidence in a trial. On the other hand, all communications between a client and a CPA or enrolled agent is not protected and thus can be used in an IRS investigation or trial.

John Spurgeon is a tax attorney in Pasadena, California servicing clients in the greater Los Angeles area. John Spurgeon & Associates, who are both tax attorneys and CPAs, have the proven knowledge and experience to effectively deal with IRS tax liens or Franchise Tax Board tax issues. For more information, please call 626-440-9518 for a complimentary initial consultation.

About John Spurgeon & Associates

John Spurgeon & Associates is a professional services firm located in Pasadena, California with a focus on tax law and related accounting services. They have extensive experience with federal and state income taxes, payroll taxes and sales taxes. They represent business, non-profits and individuals against the IRS and the Franchise Tax Board (California State Taxes). As both tax attorneys and Certified Public Accountants they offer a broad range of tax related services.