When you need assistance filing returns and getting typical tax advice, it would be fine to google a tax consultant near me and start from there. On the other hand, contentious tax issues may require the help of a tax lawyer.
Both professionals provide worthwhile services in the field of taxes, but there’s a big difference in the expertise and scope of work you can get from them. In this post, we’ll go over the advantages of hiring a tax lawyer over a tax consultant.
1. Legal Expertise and Representation
The qualifications of tax attorneys and tax consultants differ. Licensed lawyers can represent clients in audits or IRS disputes. As for tax consultants, they lack the legal background to represent clients in court. They can offer practical tax strategies and advice, but they are unable to provide legal protection.
2. Handling Complex Tax Issues
Tax laws are sometimes subject to change and can be complicated. Tax attorneys are capable of diving deeply into complex tax matters. They are the best help if, say, you are involved in a dispute with a multinational entity or over estate taxes. In the case of tax consultants, you can only rely on them for tax planning and strategies.
3. Dealing with Tax Investigations
Tax fraud is one of the serious issues with the IRS that one can face that may lead to heavy fines or even jail time. Being under investigation is a crucial time for when to hire a tax lawyer. You’ll need a representative who can help you navigate risks tied to your tax returns, negotiate deals, and represent you in court.
4. Attorney-Client Privilege
The attorney-client privilege is a key protection that tax attorneys offer. This ironclad arrangement ensures that anything you discuss with them remains secret and can't be used against you in court. A tax lawyer is bound by law to keep your information safe from tax authorities. Tax consultants offer no such confidentiality.
5. Tax Planning and Risk Management
When it comes to managing risks, tax attorneys have the upper hand. Their legal background allows them to spot potential legal risks, especially in the case of complex business deals. Tax consultants, however, focus more on ways to save you money through deductions and credits, which are great for short-term savings.
6. Peace of Mind During An Audit
Dealing with an IRS or state tax audit can be nerve-wracking. While a tax consultant can help you get your financial documents in order, having a tax lawyer on your side is key if there’s a legal kink that needs attention. They can defend you against claims of irregularities, represent you during an audit, and work out settlements.
The Legal Edge
Sure, tax consultants are excellent for general advice, but if there’s a problem with your taxes, it’s best to get in touch with a tax lawyer. You can forget to fill out the search bar with tax consultant near me and instead go for a professional who can ride a shotgun with you to get out of a sticky situation with the IRS. Ask for assistance from Richard Hackerman, a tax lawyer from Baltimore. Call us at 410-243-8800 or 888-243-5500.
