Tips for Finding a Good Tax Attorney
What a Tax Lawyer Does, Reasons to Hire One, & What to Look For
Jul 15, 2009
Tax attorneys are lawyers who are trained in the complexities of tax law. There are many situations where the expertise and advice of a qualified tax attorney is a must, and the importance of finding the right person for the job cannot be stressed enough. The following article provides a brief primer on tax attorneys including an explanation of what a tax lawyer does, what the reasons are for hiring one as opposed to another qualified tax professional, and what to look for in a potential candidate.
What Does a Tax Attorney Do?
The role of a qualified tax attorney is multifaceted and appears in a variety of situations:
- A tax lawyer can offer legal counsel and representation as well as negotiate with the IRS for debt relief. This is particularly important for individuals who are being audited by the IRS, are under criminal investigation by the IRS or have committed tax fraud. A tax attorney is also needed if one plans on filing a suit against the IRS.
- A good tax attorney can provide tax and financial planning for individuals. This is necessary if one has a sizable estate and needs advice on estate planning strategies or needs to file an estate tax return.
- A good tax attorney can provide business tax planning and business strategy. New business owners can rely on the assistance of a qualified tax attorney to help them determine the appropriate legal structure for their ventures. A tax attorney's advice is also needed for those who are engaged in international business and need help with contracts, tax treatment, and other legal matters.
- Finally, a tax attorney is a trusted adviser with sensitive information. Tax attorneys are bound by an attorney-client privilege to confidentiality. This means that they cannot testify against their clients.
Reasons to Hire a Tax Attorney Versus Other Professional Tax Consultants
There are several reasons to specifically hire a tax attorney as opposed to another qualified tax professional. Qualified tax consultants, such as CPA's and tax preparers generally lack a legal background. They rarely have the same degree of expertise and familiarity as tax attorneys do in the complex legal environment of tax law.
One should also keep in mind that any attorney is permitted to practice before the United States Tax Court. But again, even if this person is cheaper to hire or even if this person is a well-seasoned lawyer, he or she may lack necessary knowledge and experience in the area of tax law, and that may bring detrimental consequences.
Confidentiality is another important aspect of hiring a tax attorney. As mentioned above, an attorney is bound by an attorney-client privilege to confidentiality. This means that unlike a CPA, for example, a tax attorney is legally exempt from being forced to testify against a client in court.
What Qualities and Experience Should One Look For in a Tax Attorney?
A qualified tax attorney will be equipped with comprehensive knowledge and training in tax law. To practice tax law, tax attorneys must have a law degree and must be admitted to the state bar. Most attorneys gain hands-on training in tax law, and many will additionally have a Master of Laws (LLM) degree in taxation. It is also fairly common for a tax attorney to have a background in accounting and even be a qualified CPA. Good tax lawyers should additionally have experience dealing with IRS collections and handling tax debts.
Finally, tax attorneys need to have good negotiation and communication skills so they can act as an intermediary between clients and the taxation authorities. The role of a tax attorney requires that they can negotiate beneficial deals on behalf of their clients.
How to Look for an Attorney and What Questions to Ask
While there are several ways to of finding a tax attorney, the three best options are:
- Seek out and contact personal referrals and recommendations.
- Ask a qualified tax preparer, accountant, or CPA for recommendations.
- Contact the local Bar Association.
Once a potential candidate has been found, it is important that one conduct a personal interview. Here are a few questions to ask:
- Is the attorney admitted to the state bar?
- Is the attorney a CPA or an enrolled agent?
- What does the tax attorney specialize in, and how long has he or she been in business?
- How many clients does the attorney have and what kinds of clients, such as individuals versus businesses?
- What are the tax attorney's fees, what do they include, and does the person give monthly itemized statements?
- Can the attorney help with this particular tax case?
- Can the attorney offer a list of referrals?
In short, finding a good tax attorney may take a little work, but in most situations it is well worth the investment.
 |
