In addition to hiring a Certified Public Accountant (CPA), many businesses and individuals choose to hire or retain a tax attorney. Having a good tax attorney on retainer can help business avoid making costly tax mistakes from the start. Individuals and families, on the other hand, often choose to hire a tax lawyer when they experience problems with the Internal Revenue Service or the Department of Revenue in their state.
When Do You Need A Tax Lawyer?
There are many situations when a business or family may want to consult with a tax attorney. The following examples are only some of the scenarios in which hiring a qualified tax lawyer would be recommended:
- When starting a new business and need legal advice regarding how the structure of the new business may effect tax concerns
- When planning a complex estate or when filing an estate tax return
- If the business or individual is planning to file a lawsuit against the IRS
- If an individual or business is being sued by the IRS or under investigation by the IRS
- There are concerns of tax fraud and need representation to sort out the matter
- International business, for which more complicated tax laws may be applicable
How Do You Find A Good Tax Attorney?
With an ever-changing and complex topic such as tax law, those looking for a qualified tax attorney need to more than just reach for the first lawyer available. The minimum requirements for those practicing law include possessing a Juris Doctor (J.D) degree, as well as up-to-date admission in the state bar. Additionally, attorneys who specialize in tax law should have advanced education, and many will have a master of laws (LL.M.) degree in taxation.
While it isn't required, many tax attorneys have additional training in accounting. Many attorneys who work specifically in tax law, tax fraud, or complicated legal accounting issues will also hold credentials as a Certified Public Accountant (CPA).
When meeting with a potential tax attorney, the following questions may be helpful in making the representation decision:
- How many years has the tax lawyer practiced tax law?
- Does he or she have experience with the specific area of concern?
- Is he or she is current and upstanding membership with the state bar?
- What is the charge for legal representation?
- Does the attorney have any references available?
When seeking legal representation for tax-related manners, many people first turn to their general lawyer for a recommendation. Personal friends can also provide referrals, and the state bar can provide a list of names of its members who specialize in tax law. Bookkeepers and CPAs can also be helpful when searching for a tax attorney.
Retaining or hiring a tax lawyer can be a costly expense. The U.S. Government has programs in place to help low income individuals find qualified representation. For many businesses, however, having a tax attorney on board from the start can save money on costly mistakes in the long-term. Anyone who finds themselves in a complicated situation with the IRS may find peace of mind in hiring a lawyer who is a specialist in tax law.
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