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I have a tax debit problem in which im trying to get resolved.

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I have a tax debit...
I have a tax debit problem in which i'm trying to get resolved. What is the difference between using a CPA to using a attorney when dealing with the IRS.I have found people that use a CPA to handle their case at half the cost. Can i get some insight.
Submitted: 7 years ago.Category: Tax
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Answered in 11 minutes by:
5/3/2010
Tax Professional: Merlo, Accountant replied 7 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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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.

 

http://www.naea.org/memberportal/Resources/ForTaxpayers/whatis_EA.htm

 

 

Thank you JA Customer

 

 

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Customer reply replied 7 years ago

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.

Tax Professional: Merlo, Accountant replied 7 years ago

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.

 

 

Thank you JA Customer

 

 

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Customer reply replied 7 years ago
So the CPA will know the same practices as the attorney.all I owe us $16k + penalities $24k the CPA fees are $1200 compared to the attorneys fees of $3400 all I owe us the last 4 years I didn't pay enough taxes. So in you expert advice who would you recommend. I don't see this going to court
Tax Professional: Merlo, Accountant replied 7 years ago

Hello again JA Customer,

 

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.

 

 

Thank you JA Customer

 

 

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Customer reply replied 7 years ago
The levies have not be imposed yet the deadline is 30 days from the issue date.this CPA did handle tax issues. He is going to show me is records tomorrow. I feel this will not go to court. I just want to tackle the proposed levies and try to reduce my tax debit and work with my CPA and the IRS to get something I can afford.
Tax Professional: Merlo, Accountant replied 7 years ago

Hello again JA Customer,

 

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.

 

 

Thank you JA Customer

 

 

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Customer reply replied 7 years ago
I'm going to meet with the CPA today do you have any advise on questions I should ask the CPA compared to the attorney
Tax Professional: Merlo, Accountant replied 7 years ago

Hello again JA Customer,

 

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.

 

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Customer reply replied 7 years ago
Any licenses or qualifications I need to know of?
Tax Professional: Merlo, Accountant replied 7 years ago

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.

 

 

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Customer reply replied 7 years ago
My attorney mentioned to me that the CPA can't work on the intent to levy letter or if they garnish wages he can't stop that either. My attorney already filled a power of Attorney. Also the attorney said that there is no guarentee the levy can be haulted. Like I mentioned I owe all I need is to put a hold on any levies and garnishmenta. All I want is to see if I can reduce my monthly fee.I owe $16k + penalities $24k I agreed to $400 a month but I want to reduce it I'm disputing I owe I just want to see if I can reduce this in your expert expierence can the CPA handle this I'm confussed sir.
Tax Professional: Merlo, Accountant replied 7 years ago

I am going to opt out of this question and see if someone else here has any ideas for you.

 

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Customer reply replied 7 years ago
Thank you sir. I'm confussed I know I owe I'm not disputing this I just want it reduced if I can. The attorney said I make to much to offer a compromise. I need some advise I'm confused sir
Tax Professional: Merlo, Accountant replied 7 years ago

I have put your question back on the open board to see if someone else here can work with you on this.

 

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Customer reply replied 7 years ago
my personnal email address is mbarrigan2rgec.coop can someone please advise me on my last question. i have a meeting with the CPA in 30 minutes. once again im torn between the attorney and the CPA. I'm disputing the fact i owe money i'm just checking if i can reduce it down some. The Notice of intent to levy letter was dated April 5, 2010 and it gives me 30 days to respond. Which is today how does the Levyies work.
Tax Professional: Merlo, Accountant replied 7 years ago

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.

 

 

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Customer reply replied 7 years ago
I went to the CPA and he stoped the levy process and got payments down to $250 a month for 12 months thank you
Tax Professional: Merlo, Accountant replied 7 years ago

I am very happy this worked out for you.

 

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Customer reply replied 7 years ago
Yes sir you were right the CPA is doing the same work as the attorney. When I called the attorneys that were helping me out at first and mentioned I was going with the CPA they called the CPA a lier and he the CPA had no right dealing with the IRS. The settlement for now is as follows $250 a month for 12 months then after the 12 months the IRS will evaluate it again. Now the CPA is filling to reduce the penalties which is what I would like to see
Tax Professional: Merlo, Accountant replied 7 years ago
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