People are often confused over when to hire a tax attorney or a tax accountant to handle their tax disputes. They both are knowledgeable in regards to taxes and have a professional license. However, there are also.
Anything you tell or provide your attorney are “privileged communications.” This is much stronger than confidentiality or the accountant-client privilege. Your attorney may never divulge the contents of your communications with him or her to anyone without your permission. This allows you to have frank and open discussions with your attorney without fear that it will be used as evidence against you in any legal proceeding, whether you are a party, witness, or innocent bystander.
Therefore, when privileged communications are important, you should hire a tax attorney rather than an accountant to handle your IRS tax matters.
Few people realize the difference between the ethical rules that apply to attorneys and the ones that apply to accountants. Unlike accountants, attorneys owe their clients a duty of loyalty and are bound to advocate for their clients’ best interests. They cannot violate that duty.
Having a tax attorney instead of an accountant represent you in the event of an IRS audit is a tremendous advantage. It shows the IRS that you mean business and that you have an advocate who is ready and trained to represent you to the fullest measure, even in court if necessary. Knowing this, the IRS will often concede the case earlier and for less tax.
While accountants can represent you during an IRS audit, the IRS knows that accountants can only go so far. They cannot file a Tax Court petition. Therefore, if the accountant cannot settle your case with the IRS, he or she must recommend that you accept the IRS’s proposed tax deficiency, or hand your case over to an attorney who can take it to the next level. This two-step process increases your cost because the accountant must bring the attorney up to speed before he or she can begin to represent you.
Our trusted and experienced Atlanta tax attorneys are ready to help.
