The Basics
Tax Lawyer
Degree and qualifications: Requires a JD (Juris Doctor)
Many U.S. law schools require about 30 semester credit hours of required courses and approximately 60 hours or more of electives. Law students are able to choose different courses during law school depending on what they might want to focus on later. A student that wants to become a tax attorney may take courses such as federal taxation, estate and gift tax, and estates and successions before completing the Juris Doctor and taking the bar exam in a particular U.S. state. Every law student wishing to practice law must take and pass a Bar exam which is specific to each state.
Typical Client:
Clients for Tax lawyers depend on many factors. Some tax attorneys work at larger firms or even accounting firms such as Deloitte and Touche. Most of these larger firms work with large or public companies and rarely take everyday individuals.
There are tax lawyers who practice independently or as part of a small practice and they would be the ones an individual may wish to hire. Clients hiring small practices or individuals might be interested in Estate planning or handling an estate (generally wealthy). Also, people who may have been audited, haven’t paid taxes and are now facing charges, or who wish to reduce their tax debt might wish to contact a tax attorney. For the most part, there needs to be a good reason for an individual to contact a tax attorney instead of a CPA.
Small businesses may wish to contact a tax attorney if there are questions or issues beyond what a CPA can handle. Sometimes people believe that tax attorneys have a wider breadth of knowledge when it comes to the law and they prefer to go directly to a tax attorney for some issues or questions.
Certified Public Accountant (CPA)
Degree and Qualification: In order to become a U.S. CPA, an individual must pass the Uniform Certified Public Accountant Examination (Uniform CPA Exam).
A bachelors degree is typically required with a minimum number of hours spent in accounting and business administration with an additional 1 year of study. U.S. bachelors degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional 1 year of study. CPA’s are not required to attend law school, pass a bar exam, or complete a JD degree.
Typical Client:
Like tax attorneys, CPA’s can help a wide range of clients from individuals to large public corporations. The CPA’s handling large companies are often working at firms such as Ernst & Young or KPMG.
CPA’s can also be hired by small businesses to manage their taxes, general accounting, or help consult on ways to improve the way they do business to reduce taxes.
Individuals may wish to hire a CPA if they have complicated taxes but no issues that would require a lawyer. This might be the management of a home based business or people making some extra income on the side. CPA’s are also hired by individuals because taxes can just get complicated sometimes and a CPA can help.