Tax Attorneys Los Angeles

  

Income tax is a tax paid on any kind of income. Anyone with an income over a certain minimum limit is liable to pay a tax. Income tax attorneys advise on how much income is taxable and how to calculate standard deductions and any rebates that are available to a person paying tax. They also help in filing income tax returns. Also, in case of criminal proceedings for income tax evasion or fraud, they fight on behalf of their clients.

Simply paying taxes is not enough, you also need to file the returns. This will help you see if you paid the right amount, or paid too little or too much. An income tax attorney can help you here by suggesting the correct payment to be made to avoid being charged with tax evasion or, conversely, whether you can apply for a refund in cases where you paid excess tax.

Many people are not aware of the income tax laws. Senior citizens may not know of special benefits accrued to them through exemptions and self employed people like freelancers, contractors, and consultants may not be aware that they need to pay a self employment tax along with their regular income tax. Consulting an income tax attorney in these matters always ensures that you remain on the right side of the law even while taking full advantage of the exemptions and credits due to you.

Income tax attorneys also fight cases of income tax fraud and evasion. They have expertise in representing anyone charged with concealing income, making wrong deductions, filing incorrect returns, tax evasion, or any other crime related to payment of income tax. They often reach a compromise out of court. Laws like ‘innocent spouse’ allow the husband or wife of the charged party to be given some relief. Income tax attorneys take advantage of such laws to work out the best possible deal for their client. For more articles like this, bookmark www.TaxAttorneysLosAngeles.Info

Author: Max Bellamy

Tax attorneys Los Angeles are able to assist you with a wide variety of tax issues and concerns.  You can also seek tax assistance from a CPA, or even an Enrolled Agent.  It will depend upon what your tax concerns and issues are, the depth and complexity of the issues, and whether or not you need legal counsel and representation to truly resolve your tax concerns.

With the flood of ads for tax help, knowing who to trust or what’s involved can be as difficult as the tax debt itself. Tax attorneys and certified public accountants (CPAs) are often the first thought of. Both of these are viable and have their strengths, but there is a third option for tax resolution. The enrolled agent is also licensed to represent others before the IRS, and in many cases can be the ideal choice.

To better see why, let’s first look at the basic functions of each.

The Tax Attorney

A tax attorney, sometimes called a tax debt attorney, is skilled in legal matters that deal with taxes. If you’re going through the courts to handle a tax matter, this is your primary option. Tax lawyers are top draw for handling large estates, arbitration, legal investigations, and other such matters. Some forms of appeals or criminal investigations can only be handled by tax debt attorneys.

Many tax matters can be handled outside of court, though. While a tax attorney’s legal advice is always helpful, they rarely prepare tax returns or specialize in financial documents. These skills are often needed to fully resolve the issue. Since tax attorneys typically bill by the hour and for all internal administrative expenses, tax resolution cases that run into IRS delays can become expensive.

The CPA

Certified public accountants are masters of financial records and tax returns. CPAs are often used in finance or as advisers in financial planning. They are skilled in dealing with audits, and in many ways are a great alternative to a tax attorney for matters outside the court. CPAs must also earn continuing professional education (CPE) each year to maintain their certification. In this sense, a CPA can remain current with changing rules.

Despite their knowledge of finances and ability to prepare tax returns, CPAs are often less savvy with IRS procedure when it comes to collections. They are legally able to represent tax payers, but most CPAs do not base their careers around negotiation with the IRS. Further, many CPAs do not want to handle the day to day client service involved in having a situation rectified with the IRS. They typically bill by the hour.

The Enrolled Agent

Enrolled agents are enrolled to practice before the IRS in order to represent people and businesses. To become an enrolled agent, one must have worked at an enforcement position within the IRS for at least five years or have passed a series of IRS formed exams. As an IRS employee, one must have held a position interpreting and enforcing the U.S. tax code as per Circular 230. In either case, the result is someone skilled at tax returns and tax resolution in a direct sense.

No one understands IRS collection better than the one whose job it was to enforce it. While forms and laws are fairly common to all tax professionals, gaging how the IRS will perceive requests and knowing the time spans involved is a plus in negotiation. Eknrolled agents must also complete continuing education requirements like CPAs, allowing them to stay current on changing IRS rules. Since Enrolled Agents work with tax resolution day-to-day, they often provide services with up front quotes or even fixed fees.

A Deeper Look at Enrolled Agents

In an interview with Effectur enrolled agent Cecil Ryman, some clearer distinctions were seen. Only enrolled agents are granted the right to practice by the U.S. government; attorneys and CPAs are licensed by states. While all tax representatives fall under the same Circular 230 IRS code of ethics, rules for CPAs vary by the state from which the license comes.

Designation of “certified” public accountant is often disallowed in states the person is not licensed within. “This can make nationwide representation difficult,” says Ryman. Because an enrolled agent’s license is issued by the federal government, the enrolled agent can help people in any state.

“CPAs and attorneys are qualified by the IRS by their designations,” Ryman continues, “…they don’t have to take an exam.” Beyond the exam CPAs take for their license or the bar exam any attorney takes, there is nothing further they are tested on that relates directly to IRS representation. The enrolled agent exam deals quite a bit with this.

When asked why enrolled agents are lesser known than CPAs or attorneys, Ryman explained that “the IRS never gave it much relative importance until recently”. Greater focus on tax return errors made by un-enrolled preparers has sparked a new interest in licensed preparers.

Ryman points out that there are roughly 35,000 IRS enrolled agents nationwide, and the national association is growing.

Author: B. Watkins

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