When dealing with complex tax issues, financial planning, or IRS disputes, you may wonder whether you need a tax attorney or a Certified Public Accountant (CPA). While both professionals specialize in tax-related matters, their roles, expertise, and legal authority differ significantly.
This blog will explore the main difference between a tax attorney and CPA, helping you decide which professional best suits your needs.
What is a Tax Attorney?
A tax attorney is a licensed lawyer who specializes in tax law. They have a Juris Doctor (JD) degree and may also hold a Master of Laws (LLM) in Taxation. Tax attorneys are experts in:
- Tax litigation (representing clients in tax court)
- IRS audits and disputes
- Tax fraud and evasion cases
- Estate and gift tax planning
- Business tax structuring
- International tax law
Because they are attorneys, tax lawyers can provide legal advice, represent clients in court, and negotiate with the IRS on complex legal matters.
What is a CPA?
A Certified Public Accountant (CPA) is a financial professional who specializes in accounting, tax preparation, and financial planning. CPAs must pass the Uniform CPA Exam and meet state licensing requirements. Their expertise includes:
- Tax preparation and filing
- Financial auditing
- Bookkeeping and accounting
- IRS audit representation (limited)
- Business and individual tax planning
While CPAs can handle many tax-related tasks, they cannot provide legal advice or represent clients in tax court (unless they are also enrolled agents or attorneys).
Difference Between a Tax Attorney and CPA
To better understand which professional you need, let’s break down the key differences between a tax attorney and CPA.
1. Education and Licensing
| Aspect | Tax Attorney | CPA |
| Degree Required | Juris Doctor (JD), possibly an LLM in Taxation | Bachelor’s in Accounting or Finance |
| Licensing Exam | State Bar Exam | Uniform CPA Exam |
| Continuing Education | Required (varies by state) | Required (CPE credits annually) |
- Tax attorneys must complete law school and pass the bar exam.
- CPAs must have an accounting degree, pass the CPA exam, and meet work experience requirements.
2. Scope of Services
| Service | Tax Attorney | CPA |
| Tax Preparation | Rarely | Yes |
| IRS Audit Defense | Yes (full legal representation) | Limited (cannot go to court) |
| Tax Court Representation | Yes | No |
| Legal Advice on Tax Issues | Yes | No |
| Business Tax Planning | Yes (complex legal structuring) | Yes (financial planning) |
| Estate & Gift Tax Planning | Yes | Limited |
3. Legal Representation
- Tax attorneys can represent clients in court, draft legal documents, and negotiate settlements with the IRS.
- CPAs can represent clients in IRS audits (but not in tax court) unless they are also Enrolled Agents (EAs).
4. When to Hire a Tax Attorney vs. a CPA
| Situation | Hire a Tax Attorney | Hire a CPA |
| Facing an IRS audit or lawsuit | ✅ Yes | ❌ No (unless EA) |
| Need tax preparation & filing | ❌ No | ✅ Yes |
| Starting a business (legal structuring) | ✅ Yes | ✅ Yes (financial side) |
| Tax fraud or evasion allegations | ✅ Yes | ❌ No |
| Estate planning & trusts | ✅ Yes | ✅ Limited |
Can a CPA Also Be a Tax Attorney?
Yes! Some professionals hold both CPA and JD degrees, allowing them to provide both accounting and legal services. These individuals are highly skilled in:
- Tax compliance (CPA side)
- Tax litigation (Attorney side)
If you need both financial and legal tax assistance, a CPA-Attorney may be the best choice.
Which One Do You Need?
Choose a Tax Attorney If You Need:
✔ Legal representation in tax court
✔ Help with IRS disputes or tax fraud cases
✔ Complex estate or business tax planning
Choose a CPA If You Need:
✔ Tax return preparation & filing
✔ Financial planning & bookkeeping
✔ General IRS audit assistance (not litigation)
Frequently Asked Questions (FAQs)
1. Can a CPA represent me in tax court?
No, only a tax attorney or an Enrolled Agent (EA) can represent you in tax court.
2. Do I need a tax attorney for an IRS audit?
Not always – a CPA or EA can handle many audits. However, if the case escalates to litigation, a tax attorney is necessary.
3. Who charges more – a tax attorney or a CPA?
Tax attorneys typically charge higher hourly rates due to their legal expertise, while CPAs may offer flat fees for tax preparation.
4. Can a CPA give legal advice?
No, only licensed attorneys can provide legal advice.
5. Should I hire both a CPA and a tax attorney?
For complex financial and legal tax matters, hiring both can provide full coverage of your needs.
Final Thoughts
Understanding the difference between a tax attorney and CPA ensures you get the right help for your tax situation. Whether you need legal defense or financial planning, choosing the correct professional can save you time, money, and stress.
Need expert tax advice? Consult a tax attorney for legal issues or a CPA (Eric M Hunt) for accounting needs today!
