If you are starting a new business, dealing with a complicated tax situation, or the Internal Revenue Service (IRS) is auditing you, it’s a good idea to talk to a tax lawyer. Engaging a tax lawyer in any of these situations can relieve your stress and help you abide by the tax laws. A tax attorney is knowledgeable about tax laws, rules, and policies at the federal, state, and local levels. They can help you with tax planning, as well as assist in navigating tax disputes. Tax planning lawyers also help high-net-worth people and businesses organize their financial affairs in a way that lowers their tax payments while avoiding an IRS audit.
Tax specialists can provide a range of services and aid in the resolution of many types of tax complications. Tax accountants assist you with tax returns, whereas a tax lawyer can assist you with resolving IRS disputes, tax debt issues, litigation, and other complex tax matters.
The Process of Hiring a Tax Lawyer
Finding a qualified tax lawyer may seem daunting because there are many competing law firms specializing in tax law. You may start your search by asking for a referral from your return preparer, colleagues, friends, or family who may know a reliable professional. The second option is performing an online research. Most people prefer using the Internet because it usually provides a wealth of information. However, don’t make the common mistake of randomly picking a tax law firm at the top of Google search results. Before you hire any professional, you need to cross-check the background, qualifications, and experience of the professional. So, if you’re looking for a tax lawyer, the following tips can help you find a genuine professional.
- Qualifications of a Tax Lawyer
You need to check what level of education the lawyer has. Ideally, a tax lawyer should have a Juris Doctor, known as a J.D. Checking their qualification and license to practice law are important factors. Some tax lawyers also have a degree of Master of Laws in taxation. When looking for a tax lawyer, check their credentials such as J.D. or L.L.M. (Master’s Law Degree) in taxation which ensures that the professional is academically qualified to work within the field of tax law. They must have a background in tax laws and pass a bar exam.
- Type of Tax Issues a Tax Attorney Resolves
You can contact the lawyer or check their website to understand what type of tax matters they handle. You can find different types of tax lawyers specializing in different tax issues. For instance, a tax lawyer specializing in tax planning for businesses may lack experience in negotiating a tax debt settlement. So, make sure the lawyer you choose has enough experience in your specific problem to get the best solution for your legal tax issue. Find out if they have the knowledge and expertise in tax laws, IRS rules, and the tax codes of your state. Typically, tax lawyers handle issues like IRS audits, Appeals, Tax debt resolution, Representation before the IRS, Litigation, and more. Their services could include estate planning, corporate tax, real estate tax, tax planning, and so forth.
Another important factor is the fee lawyer charges. Their knowledge and IRS experience matters but if their fee is too high, their services could be out of your budget. So, ask about their service charges upfront to know if there’s a flat fee, hourly rate, or retainer charge.