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Why might you seek the help of a tax attorney rather than a CPA?
Unlike CPAs, who are skilled in managing financial records and preparing tax returns, the tax attorney is more planning and dispute-oriented; meaning they are primarily trained to help minimize a business’ tax liability through the structuring of assets or to represent them through tax-related litigation.
Why do people hire lawyers when dealing with the IRS?
Having experienced legal counsel helps ensure that you don’t overpay as a result of your audit. In some instances, taxpayers ignore letters and warnings from the IRS because they’re scared or don’t know how to respond. In those cases, the IRS may have no choice but to threaten you with criminal charges for tax evasion.
Do accountants know tax law?
CPAs know how to abide by federal tax laws while maximizing your tax benefits and minimizing your tax liability. Typically, you want to hire a CPA if you have much money coming in and out because you can benefit more during the tax season. You want someone who has training specifically for taxes to do your returns.
Does the IRS check every tax return?
The IRS does check each and every tax return that is filed. If there are any discrepancies, you will be notified through the mail.
How much should you pay a tax preparer?
The average cost of hiring a tax professional ranges from $146 to $457. Purchasing tax accounting software can be a less expensive option; it can be free (for simple returns) and for more complex filing options, it will generally cost less than $130.
How long does it take to get an offer in compromise accepted?
Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your Offer in Compromise (OIC). The process can take much longer if you have to dispute the examiner’s findings or appeal their decision.