When Your CPA Can’t Help Anymore: Knowing When to Call a Tax Attorney

When to Get a Tax Attorney Involved With Your Tax Problems

You probably rely on your CPA for most of the tax obligations you have in running your business or handling your high-net-worth portfolio. But when you receive enforcement notices, have an unpaid balance, or receive notification of an audit, you may need additional help, and that’s where a tax attorney comes in. 

While your CPA and return preparers provide essential services, there are times when tax resolution services from an attorney become invaluable. Both tax attorneys and CPAs can represent you in front of the IRS or your state tax agency, but in many situations, you’re better off hiring an attorney who focuses on IRS representation and resolution, rather than a CPA who focuses on financial statements and tax prep.

Here’s a look at when you need to hire a tax attorney to support what your CPA does for you or fill in the gaps for what they cannot do.

Key takeaways:

• CPAs focus on compliance, not enforcement or tax disputes. 
• Tax attorneys handle IRS collection issues, negotiations, and complex disputes.
• Tax liens, levies, or a Revenue Officer contact mean it’s time to call an attorney.
• The earlier you act, the more options are available to resolve the issue.
• W Tax Attorney provides direct, experienced legal help for individuals and businesses dealing with significant tax problems.

CPAs Vs Tax Attorney: What’s the Difference?

What’s the difference between a CPA and a tax attorney? Both are tax professionals who can provide unlimited representation in front of the IRS. Both must obtain a certain level of education and pass tests to get their credentials. And both must complete continuing education to keep their licenses active. 

But these professionals tend to focus on different aspects of the tax industry. 

The Line Between Tax Preparation and Tax Resolution

CPAs often focus on preparing tax returns, maintaining financial reports, and tax planning to reduce tax obligations. Tax attorney, in contrast, often focus on tax resolution, which involves addressing problems and challenges, such as unpaid taxes, audits, collection actions, or tax crimes. 

Your CPA can provide you with guidance and insight into which returns you need to file, how to minimize your tax burden, and how to stay compliant with tax obligations. They may also be able to respond to audit inquiries on returns they’ve filed – but in most cases, they don’t handle resolution work such as applying for settlements, appealing tax assessments, or dealing with IRS collections.

In situations where you are facing IRS collections actions or you wish to appeal a decision the federal or state taxing authority made, it is critical to have a tax attorney working by your side. Tax attorneys have extensive experience not just handling collections notices but also creating defense strategies and building robust investigations to determine the best route through such obstacles. 

When the IRS begins any type of enforcement action against you, obtaining legal representation can be essential. Without it, you may be putting your financial future on the line.

When Your CPA Isn’t Enough – When to Consider Contacting a Tax Attorney

Here are some specific examples when hiring a tax attorney, not just using your CPA, makes good financial and legal sense:

• You owe $25,000+ and have received collection notices.
• You’re being contacted by a Revenue Officer about your unpaid taxes, especially if the Revenue Officer is contacting your business.
• The IRS has issued a lien or levy against you.
• You have multiple unfiled returns.
• Your business is dealing with payroll tax issues, or you’re facing individual liability for the Trust Fund Recovery Penalty.
• You’re pursuing an Offer in Compromise or trying to delay enforcement, and you must ensure each application or appeal gets completed correctly.
• Your CPA refers you out or admits they’re not equipped to assist, especially after continued failed attempts.

In any situation in which you believe your CPA is not being honest or open with you about what they can or cannot do, or when you need a second opinion about your options, seek out legal guidance. Doing so is a critical step in protecting your financial future. A lot of tax attorneys start with a free consultation, which gives you a chance to decide if it’s worth it to hire them.

Keep in mind that if your CPA is trying to help, but is struggling with roadblocks or perhaps has limited your options for moving forward, speaking to a tax attorney gives you peace of mind. You will understand your legal rights and the steps available to resolve the matter in the most efficient manner possible. 

Why a Tax Attorney Makes the Difference

Why can’t your CPA do the same thing for you? A CPA spends years in school learning to support tax obligations, manage finances, and meet compliance requirements. However, they are not equipped with the same tools and resources that your attorney has to help them get results. 

Your attorney: 

• Has negotiation skills. That means they can help you negotiate timelines, reduction in fees, and long-term outcomes in your favor. 
• Knows all of the legal options available to you. That includes installment agreements, Currently Not Collectible (CNC) status, and Offer in Compromise (OIC) opportunities. They also know how to apply for these programs in a way that benefits you the most.
• Can represent you in Tax Court. In situations where you need to appeal IRS decisions on tax assessments, collection actions, or other matters to the US Tax Court, an attorney can represent you all the way through. Most CPAs cannot represent clients in Tax Court.

When you hire a tax attorney, they become your advocate. Their objective is not just to meet compliance requirements. Rather, they represent you and your best interests to the IRS and state authorities. That can make a profound difference in the outcome of your situation. 

Tax legal matters affect every part of your business and financial well-being. With an attorney, you learn all strategies available to mitigate financial risk moving forward. Your attorney’s sole goal is to support your best outcome.

What to Look for in a Tax Attorney

When you’re ready to get additional help and guidance, your first step is to find a tax attorney who can handle your specific situation. Depending on the complexity of that situation, you may need a specialized provider. 

Before you make a decision about who to hire, consider the following:

• Experience: How many years of tax law experience does the lawyer have? What type of difficult cases have they successfully navigated?
• Results: What success have they had in cases like your own? Check out their client testimonials to learn more.
• X-factor: You’ll be working with the attorney for a while, so it’s important to hire a professional who you feel comfortable with and who speaks in a way that you understand.

To find the right fit, research the attorney on Google Reviews and through third-party websites. Read their bio. Set up a consultation to discuss your situation and get to know their availability. You need an aggressive professional ready to commit the time to your case.

Why Acting Now Saves You Money

There is little benefit to waiting to hire a tax attorney. The longer you put it off, the higher the risks are that you will pay more, face more in-depth legal liabilities, and put your financial future on the line.

Delays nearly always lead to financial loss for taxpayers, including wage garnishments, bank levies that cripple your finances, and increased penalties that make your tax debt even harder to pay. Missed deadlines eliminate your right to appeal those decisions.

Instead of putting any of your financials at risk, seek early legal intervention. It will save you thousands in interest and penalties in serious legal battles with the IRS. 

When to Call the W Tax Group

If you are concerned about your tax situation, whether for personal or business taxes, turn to the W Tax Group. There is no reason to wait. There are some situations where hiring an attorney is simply essential, especially when you need guidance navigating resolutions for nonpayment or disputes. 

At W Tax Group, we encourage you to maintain your relationship with your CPA for your ongoing financial management and tax obligations. However, bring on our team to help you navigate the complexities of your tax-related concerns. We can help you resolve IRS and state tax issues in an effective and efficient manner, giving you the support you need to move forward without risk. Contact W Tax Attorney today for a confidential consultation.

Frequently Asked Questions (FAQ)

Q: How do I know if I need a tax attorney or a CPA?

A: In many situations, just asking this question means you need additional legal guidance. If you have issues involving tax enforcement, such as collections, liens, levies, or audits, you may need a tax attorney, not just a CPA.

Q: Can I keep my CPA and still work with a tax attorney?

A: Absolutely. It is critical to continue to work with your CPA. They will handle compliance and minimize tax obligations going forward. Your attorney handles the challenges and problems that arise with the IRS and state taxing authorities. You often need both.

Q: What does the W Tax Group help with?

A: W Tax Group can help you deal with any tax dispute you’re having with the IRS or the state. We can help you apply for relief programs, set up payments, and dispute penalties. If you have a tax problem, contact us to learn how we can help.

Q: I’ve already received IRS notices. Is it too late?

A: This is the exact time to turn to a tax attorney to help you navigate your legal options. When you call W Tax Attorney, we review your notices and help you determine the best path forward. Contact us as soon as possible – early legal representation can prevent further damage.

Q: What’s the first step to working with W Tax Attorney?

A: Even if you are unsure what your rights and obligations are, take action right now. Book a free consultation to discuss your case and potential options for resolution. There is no risk in learning what your rights are.