The difference between a tax accountant and a tax lawyer?
Thursday, November 1st, 2007 at
9:36 am
Ivy Suen asked:
I know the path to becoming either of these professionals differ.
I know the path to becoming either of these professionals differ.
However, is the legal aspect only factor that separates the two professions? Which would have the most expertise on tax?
Do tax lawyers make more than tax accountants?
Do they perform similar job duties?
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A “tax lawyer” is a lawyer who specializes in tax matters.
A “tax accountant” is an accountant (or, in some states, a person) who specializes in tax matters.
(In most states, there is no requirement that a tax preparer have ANY training, and there are some states which, although they _attempt_ to regulate use of the term “accountant” to refer to CPAs, may be unsuccessful in that regulation attempt.)
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Pretty much anyone can call themselves a “tax accountant” as most States have no licensure requirements for accountants other than for CPAs. A Tax Attorney on the other hand is a licensed attorney who specializes in tax law.
If you’re looking for someone with the most expertise in taxation, look for an Enrolled Agent. They are specially licensed and certified by the IRS as experts in taxation. Many of them specialize in specific areas of taxation such as small businesses, corporate taxes, expatriate taxes, estate & gift taxes, individual income taxes, etc.
If you’re facing a criminal situation, a tax attorney is the only way to go as only an attorney can offer full client-attorney privilege.
As far as incomes go, the sky’s pretty much the limit for CPAs and attorneys. My brother is a CPA and he pulls well into 6 figures. A good EA with an active practice can pull into 6 figures as well. I have a very small tax practice and just pull a few thousand each year, mostly for some extra cash and because I enjoy doing it.