Dealing With Tax Problems
Handling tax problems is never an easy task to take on by yourself. The U.S. federal tax code is more than 2,500 pages long and California is notorious for having a complex set of tax laws. The IRS is not very forgiving when it comes to filing your taxes late or inaccurately. If the IRS believes your errors were willful, you could be facing time in state or federal prison. When you are facing fines, penalties or an audit, having an experienced tax attorney may save you thousands of dollars.
Why You Should Consult With Rita Holder Law
At Rita Holder Law, we have more than three decades of experience helping Californians with tax issues. To be clear, we do not help individuals or organizations prepare their taxes, we help deal with audits, accusations of tax crimes and charges of tax law violations. If you are unsure of how to respond to the notification you got from the state or the IRS, that is a sign that it’s time to speak with an attorney.
Hiring A Tax Attorney Versus A Certified Public Accountant
There are two main reasons you should not go to a certified public accountant (CPA) when facing audits and tax charges. The first is that CPAs do not have a CPA-client privilege like the attorney-client privilege enjoyed by lawyers. In a criminal investigation, a CPA must turn over all information related to your case if subpoenaed. This includes any damaging information or questions you may have asked that put you in a bad light. With an attorney-client relationship, the government cannot force you or our attorneys to reveal anything we discuss.
The second main reason to hire an attorney instead of a CPA has to do with the nature of the professional accountant industry. Accountants and accounting firms build their client bases largely on their reputation. If a CPA prepared the tax filing that was called into question, admitting they made a mistake could be career suicide and they are likely to blame you. We are not suggesting that all CPAs would do this, but remember that there is no CPA-client privilege and a CPA has more to lose than to gain by admitting a mistake.