If you own a small business in Texas, you must deal with several intricate tax topics on a daily basis. When tax issues loom, you may wonder whether you need a Certified Public Accountant or a tax attorney to meet your business’s needs. Although both professionals can assist you in planning taxes and providing valuable advice through stringent tax circumstances, the difference that makes CPAs the best is their versatile qualifications and scope of work. So, what does a CPA in North Dallas, TX do? At North Dallas, a CPA is proficient at filing taxes and finding every tax deduction and credit you’re eligible for. On the other hand, a tax attorney is a lawyer who analyzes your tax decisions to check what the IRS permits. Both professions play a different role, and choosing one over another is a significant decision.
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What is a CPA?
CPA, aka Certified Public Accountants, acquires their credential through a stringent course of higher education in handling business and finances. They’re well-acquainted with Texas state and federal tax laws. Their duty is not only limited to helping their clients to adhere to the rules & norms but also adhere to the norms that apply to their license.
CPAs hold a very influential position because of the integrity of their extensive training, followed by the gravity of the impact on business and personal finances. However, to obtain your CPA license, you should fulfill the following requirements:
- An undergraduate degree in finance or a similar background.
- 150 hours of university-level coursework, which means obtaining a master’s degree.
- A national examination was conducted by the AICPA board.
- Two years of working experience in the finance sector.
What is a tax attorney?
A tax attorney is often termed a licensed professional specialized in tax legislation. Although tax attorneys and CPAs share a profound comprehension of the Texas tax administration, the former excels in legal proceedings, negotiation, compensation, and other contexts of Texas tax law. To become a tax attorney, adhere to the following guidelines are essential:
- An undergraduate degree or similar.
- Acquire a law degree from a recognized law school.
- You must have qualified for the ethics examination, which is MPRE.
- If you’re willing to practice law, getting a license from the state bar association is crucial.
How do you ascertain if you need a CPA or a tax lawyer?
Often, individuals seek a CPA’s assistance with their business or personal tax requirements. If you intend to file tax returns, working with a CPA is essential. Moreover, when you’re busy and feel overwhelmed to file a personal return, if your financial scenario has been revamped, or you’re too underskilled, considering hiring a CPA would be an ideal decision. Other primary reasons for hiring a CPA are the following:
- Launching a new business and applying for loans.
- Reducing your tax liability.
- Acquiring, selling, or integrating a business.
- Moving through transformations to tax law.
- Going through a marriage, divorce, or any other significant life change with tax imputation.
Some Certified Public Accountants are capable of solving intricate matters in tax court or the IRS, including levies, wage garnishment, liens, or IRS negotiation. Nonetheless, under these circumstances, a tax lawyer will be of most excellent assistance, especially if legal counsel or advocacy is required, as most competent CPAs will agree.
Conclusion
While both tax lawyers and CPAs can assist you in making informed financial decisions and providing a helping hand in tax planning, each possesses a unique blend of skills and qualifications. In case you seek accounting help, you can navigate your tax season stress-free by relying on a CPA. On the other hand, if you seek advice regarding IRS hassles and other legal disputes, hiring a tax attorney will be your best bet.
