Difference Between a Tax Attorney, Accountant & Tax Preparer

When considering tax preparation services, most people ineffectually place an accountant, a tax attorney and a tax preparer in the same boat. However, the only thing common between them is the fact that they understand and have an in-depth knowledge of the taxes currently being levied. Looking at them with that point of few, it’s easy to get a warped perspective of their services and their importance in your grand tax scheme.

But before you choose to completely disregard their tax services here is how you can always differentiate between them:

Tax Preparer

A tax preparer is someone who offers tax services that are limited only to aid in the process of tax preparation. Their basic goal is to help their clients prepare their tax returns. Equipped with knowledge about local and federal taxes, the tax services offered are on a more fundamental level and are usually not involved with corporate or business tax preparations.

Tax preparers are in-business mostly during the tax season when there is a great rush of people looking to file their taxes before the deadline. However, once the tax season is over, most tax preparers also fold up shop and work in other occupations until the next tax season comes around.

Accountant

An accountant is an indispensible commodity for any small or large businesses or organizations. Aside from regulating the daily expenditures and budget, they have a keen understanding of taxes and their rulings on a corporate and personal level. Their services can be acquired for personal tax or business tax preparation purposes and they are available all year round.

However, most people find that hiring an accountant for tax preparation can be costly and opt to save money by choosing a tax preparer. Despite the difference in prices for their services, most people do choose accountants because they feel that the price for an accountant’s tax services is worth the guarantee that they will be in good hands.

Tax Attorney

A tax attorney has little to no involvement in the tax preparation process. Although some are utilized for helping out businesses formulate proper tax structures and treatment plans, tax attorneys are usually involved in untangling the illegal or legal web of procedures that can ensnare a business or an individual. Any tax services offered by a tax attorney are usually related to helping clients deal with tax audits and criminal investigations run by the IRS. Although their services are also available all year round, the cost is considerably higher as compared to accountants and tax preparers.

However, whether you choose to hire a tax preparer, an accountant or a tax attorney, make sure to pick someone who is properly qualified to handle your taxes. With so many cases of fraud, identity theft or general incompetence, you don’t want to get on the IRS’s watch list because of something you did not do but are held responsible for.

If you require any more information regarding tax attorneys, tax preparation and accountants, please feel free to contact us at 407-502-2400 for more information.