Tax Lawyers Vs Accountants – What is the Difference & Who Should You Hire

One has to be extra careful when handling their taxes. Proper planning and organising are imperative to meet your financial goals and prevent expensive errors. To keep track of your spends, handle tax returns, and make negotiations with the IRS, getting the assistance of a professional tax lawyer in Perth will help eliminate stress and generate good results as well. Knowing what your requirements are, will help you choose between tax lawyers and accountants.

What Does an Accountant Do for You?

If you are looking for a basic financial management and simple tax preparation, an accountant will be able to help you out. They could analyse the structure of your business, keep track of expenses and taxes as well. Here’s what an accountant will do for you:

  • Fundamental bookkeeping, such as keeping track of payments and expenses
  • Creating and filing annual tax review
  • Filing quarterly tax paperwork
  • Analysing which tax strategies work great for financial planning
  • Incorporating financing plans, budgeting, and others into tax planning
  • Finding strategies that helps reduce tax liability and increase profit at the same time

How Does a Tax Attorney Help?

While it’s true that both an accountant and tax attorney will do the heavy lifting for you when it comes to your taxes, the expertise of an accountant is not as expansive as that of a tax lawyer in Perth. There are certain circumstances when only a tax lawyer could help you out. Here are some of such cases for which you should consider hiring a tax lawyer:

Receiving a Notice of Deficiency from the Internal Revenue Service (IRS):

Both an accountant and a tax lawyer will have the knowledge to help win your case in this situation, but there’s one aspect that an accountant cannot do – presenting your case. A tax litigation attorney in Perth will use their expertise in tax law and use their presentation skills to create a winning argument to bring the result in your favour.

You have Co-Venturers or Partners:

If there’s more than one person contributing to the capital, you will need to create a tax structure with which every member will receive maximum tax benefit. A proficient tax lawyer will be able to better deal with the complexities associated with this and suggest you the right strategy for a positive result.

Planning for Succession of Your Business:

If you want your kids or someone else to take over your business after your death, you will have to get the assistance of a tax lawyer. A good tax attorney should be able to blend your business into your estate plan.

You Run a Non-profit Business:

The laws associated with non-profits are a bit tricky and there are a few important details one has to know about board member selection, forming the structure, and other things described in the non-profit tax law. This is where a tax attorney will provide a better guidance than an accountant.

Now that you know the difference between an accountant and a tax lawyer, you might probably understand that it is sensible for businesses to hire a tax lawyer or a migration lawyer in Perth to make important legal decisions.