Representing a Corporation
A corporation is a legal entity. Under the law, it is not an individual and thus cannot represent itself in a court of law. Whereas, an individual can represent themselves and is known as “In Pro Per” the same cannot be said for a corporation.
Therefore, if a corporation has a dispute with the IRS and the matter goes to the tax court for either a civil or criminal matter – the corporation has to be represented by an attorney. And if you are going to have to appear before a tax court, it only make sense to find a tax attorney who is properly trained to practice tax law.
A tax attorney must be knowledgeable with both federal and state tax laws. Each jurisdiction has their own state tax laws so your attorney will need to know the state tax laws in your area. This is a very important requirement because if the IRS finds that you committed a violation and you owe them money for back taxes then the state taxing authority will find out and levy a demand for the taxes for the same violation.
The way this works is that you use the same numbers that you submit you on federal tax returns as your state tax returns. So if one entity finds that you under-reporting your gross income for example, then you are going to need to pay more taxes to both the federal and state.