Have a Tax Question? Ask a Tax Expert
Hello JA Customer,
A CPA who is experienced with taxes will always be cheaper than dealing with an attorney. The biggest difference is that a tax attorney will have more experience in actual tax law cases and would also be able to represent you in tax court if your particular situation required it. If your situation is not that involved that you think you would actually end up battling the IRS in court over your situation, then an attorney is not likely required.
Also, not all CPA's are really experienced in dealing with taxes or with tax problems. Many CPA's only offer accounting services and not tax services. And if tax services are offered, it does not necessarily mean that any one particular CPA has a great deal of experience in dealing with the IRS when a problem arises.
There is one other option that you may want to consider, and that is using the services of an Enrolled Agent (EA). An EA is not actually a tax attorney, however, they have passed tests administered by the IRS and have been licensed by the IRS to represent taxpayers in tax court and in all matters related to a taxpayer's case. An EA is just as knowledgeable as a tax attorney and can represent you in the same manner, but the fees of an EA will generally be more in line with those of a CPA.
I am giving you a link to the website of the Natl Assoc of Enrolled Agents. On the left hand side of that page you will find a link where you can find an EA in your area. You may want to call a couple of them to see what their fees are for what you require.
Thank you JA Customer
the CPA has represented clients before. i only owe $16k with penalties it comes to $24k
i don't seeing this going to court to battle this. Right now i just want the Notice of Intent to Levy off my back for a while and the CPA said he can do it. His fees are $1,000 to handle this.
Hello again JA Customer,
As long as the CPA you are dealing with has handled matters like this in the past, then I certainly believe that is a reasonable fee. And if you do not see this going to court, then by all means I would recommend using the services of this CPA to help you with the levy issue. You may also want to ask him for his help in putting through a request to reduce the penalties, as the IRS will do this sometimes depending on the circumstances and your past history of compliance.
A CPA with tax experience can deal with issues like this with just as much expertise as a tax attorney. The only limitations the CPA would have is if your case was being contested in tax court. In that situation you would definitely want to hire either an attorney or an EA who was familiar with tax law cases and could represent you in court.
If your only needs here are to have levies removed, then the CPA should be able to handle this without any problems. I would most definitely go with the CPA in this case as a tax attorney could not offer you any additional services than the CPA can for this type of situation.
Issues of this nature that will not involve tax court should be able to be handled easily by this CPA, as long as he has tax experience. Based on your situation, I would not go to the expense of hiring a tax attorney and feel that this CPA should be able to handle your situation without any problems.
The only real thing to verify here is that he does in fact have some experience in this area. If he can show you some cases he has handled in the past with similar situations, then I think from there you just need to leave this to his expertise.
The only license this person should have is a CPA license which he should be able to show you. He is not licensed as an attorney or an enrolled agent and so he could not do anything for you in tax court. But you already said you do not expect this to be a court case.
He does not even actually need a CPA license to prepare the type of paperwork you are having done. Any tax practitioner can do the same and they are not required to be licensed.
I am going to opt out of this question and see if someone else here has any ideas for you.
I have put your question back on the open board to see if someone else here can work with you on this.
If someone else here in the forum has any advice for you, they will post it here in this forum. The experts here cannot correspond with you directly by email. It is prohibited by the terms of this website. I cannot guarantee you whether or not anyone here will respond within a certain timeframe.
I am very happy this worked out for you.