A tax attorney, also known as a tax lawyer, is an attorney specializing in the application and interpretation of tax policies and laws. Tax attorneys are often involved in litigation, advising taxpayers on the tax consequences of various transactions and representing clients who have tax disputes that can only get resolved in a courtroom.
While individuals and businesses can use tax software to help them with tax-related obligations, there are certain situations when hiring an attorney may be a preferable option.
The cost of hiring an attorney depends on the complexity of a case. It may also depend on where you live and the experience of the attorney you hire. Tax lawyers tend to charge a flat fee or an hourly rate fee in most cases.
There are many tax attorneys, and choosing one without any prior experience in what to look for might be challenging. Here are some of the factors to consider when hiring a tax lawyer:
A certified public accountant can help you with many tax issues and offers similar services. Here is why you should opt for a tax attorney over a CPA, nonetheless:
When you hire an IRS tax attorney to resolve your tax issues, it’s important to make sure you work with a reputable professional. Reviews and ratings can tell you a lot about how tax lawyers work with clients, but only the attorney’s bar association can tell you whether they’re in good standing. Check your attorney’s listing on their state bar association website to make sure they’re the reliable professional you expect.
Researching Cases: Tax lawyers investigate IRS cases to identify problems and determine potential solutions. They know which documents to review, where to find problems, and how to handle IRS notices.
Wage Garnishment Removal: When the IRS threatens to start collecting its debt by taking a percentage from your paycheck, you need to take action quickly. A tax lawyer can make a case for stopping wage garnishment and help you propose another course of action to the IRS instead.
Tax Lien Release: If the IRS places a tax lien against your property, selling assets like your car or your house can become impossible. A tax attorney can work with the IRS to release its lien on your property and find another solution for repaying your tax debt instead. Wage Garnishment Removal: When the IRS threatens to start collecting its debt ...
Hurricane Tax prides itself on being a full-service tax relief firm that employs tax attorneys, CPAs, and EAs. However, the firm specializes in complex issues like releasing tax levies and liens and lifting wage garnishments. Hurricane Tax can also assist with establishing IRS installment agreements.
Some also go on to earn a Master of Laws in Taxation (LL.M.) degree, which provides specialized preparation for working in tax law. Finally, tax attorneys have to pass the bar exam administered by their state’s bar association. This exam requires rigorous preparation and proves attorneys’ competence at practicing law.
A tax attorney can build a case in your defense and represent you in court if necessary. Delinquent Tax Returns: Filing outstanding tax returns allows you to bring your account with the IRS current, but filing late can also lead to substantial interest fees and penalties.
Your tax lawyer can reassure the IRS that you’re taking its investigation seriously, work with the IRS in an effort to help you avoid criminal charges and represent you in court if you are charged with a tax crime.
IRS tax matters are a very crucial and sensitive issue and a slight mistake in the process can cost you very dearly in the form of loss of money, time, which can get you frustrated and may land you in jail. The tax laws and the legalities involved in the process ...
Most tax disputes arise in the form of an audit of one or several past tax returns. If the IRS notifies you of an audit, you should hire a tax attorney immediately. Your tax relief attorney can communicate with the IRS on your behalf, be present during your audit and help negotiate a settlement, if necessary.
If you are unable to pay your federal tax debt, the IRS offers a way to get a new start called an Offer in Compromise. The Streamline IRS Offer in Compromise program is straightforward with specific criteria and open lines of communication. This program is very manageable for any taxpayer to handle themselves. However, those who do not qualify for the Streamline Offer in Compromise program should consider hiring a tax attorney to handle their IRS negotiations. The IRS has up to two years to accept or reject an Offer in Compromise and the higher your total amount owed, the less likely the IRS is to accept your settlement offer. To begin the OIC process, you must file IRS Form 656, Offer in Compromise and pay a $150 nonrefundable application fee. For full details on the OIC program, see the
When you want to save yourself and your business from IRS penalties, interest and possibly criminal actions (including jail terms), it is best to hire an expert in tax representation, who will be able to handle your situation better.
In some instances, taxpayers ignore letters and warnings from the IRS because they’re scared or don’t know how to respond. In those cases, the IRS may have no choice but to threaten you with criminal charges for tax evasion. If you learn that you’re the target of an IRS criminal investigation, you’ll want to hire a tax lawyer—and do it quickly.
If the IRS ignores your attempts to correct the mistakes, it is time to contact an attorney. An attorney can draft your letters to the IRS in a more direct way that is guaranteed to get the IRS’s attention. Additionally, most tax attorneys have direct contact information for the necessary branches of the IRS where matters should be handled and can negotiate matters over the phone instead of through writing, effectively ending the communication issues.
In one recent year, more than 30,000 taxpayers filed petitions in tax court after losing their audits and appeals.
In the most populous states, tax court hearings are held monthly throughout the year, except summer, in major cities. In smaller states, the tax court may meet only once a year for a week or two, usually in the state’s largest city. Sessions are usually held at the local federal building.
Bankruptcy judges also have the power to decide IRS disputes. I have seen some very favorable tax decisions made in a bankruptcy court adversary proceeding. Of course, you must file bankruptcy first to get your IRS dispute heard. If bankruptcy is a serious option for you, see both a bankruptcy and a tax lawyer, or one who works in both areas.
Small cases (under $50,000) heard in tax court are final and cannot be appealed. All other cases—regular cases heard in tax court, as well as cases brought in a district court, the court of federal claims or bankruptcy court—can be appealed to a U.S. Circuit Court of Appeals.
IRS Bills? The Internal Revenue Service can wreak havoc on your life. This book has the information and strategies you need to confront America’s most intimidating agency.
Create a business tax strategy that will save you time, energy and money. Getting your tax on track will free time to do what really counts - running a profitable business.
Worried about escaping an audit intact? Then you need Surviving an IRS Tax Audit. This book explains what to say, what to do, even what to wear, so that a visit from the auditor doesn't turn into a disaster.
Of course, they specialize in helping people file tax returns and responding to IRS audits, but take a look at all of the ways in which a tax lawyer could assist you! 1. When You Owe Back Taxes.
1. When You Owe Back Taxes. Not everyone who owes taxes needs to hire a tax lawyer. However, if you find yourself in a position where you owe the IRS an excessive amount of money, you may need to look into. This includes if you owe the IRS money from the year or years below.
It is a thorough investigation of your tax records. There are three types of audits: Field audits are the most invasive and occur when the IRS sends an actual IRS agent to your home or business to perform the audit.
If you made an error while filing your taxes, a tax lawyer will help negotiate with the IRS and keep you out of jail and express the sincerity of your mistake.
However, that refund has an expiration date and will only be valid for three years.
It is a thorough investigation of your tax records.
Facts to Know About Tax Law and Tax Attorneys. Not many people enjoy watching their hard-earned dollars come out of their paycheck every month. They enjoy it even less when they owe taxes at the end of the year. However, taxes go to some pretty important things that we take for granted in our day to day lives.
The IRS has adopted a Taxpayer Bill of Rights that includes 10 fundamental rights that every taxpayer has when interacting with the IRS: The Right to Be Informed. The Right to Quality Service. The Right to Pay No More than the Correct Amount of Tax. The Right to Challenge the IRS’s Position and Be Heard. The Right to Appeal an IRS Decision in an ...
The IRS has adopted a Taxpayer Bill of Rights that includes 10 fundamental rights that every taxpayer has when interacting with the IRS:#N#The Right to Be Informed.#N#The Right to Quality Service.#N#The Right to Pay No More than the Correct Amount of Tax.#N#The Right to Challenge the IRS’s Position and Be Heard.#N#The Right to Appeal an IRS Decision in an Independent Forum.#N#The Right to Finality.#N#The Right to Privacy.#N#The Right to Confidentiality.#N#The Right to Retain Representation.#N#The Right to a Fair and Just Tax System.#N#Our TAS Tax Toolkit at TaxpayerAdvocate.irs.gov can help you understand these rights and what they mean for you. The toolkit also has examples that show how the Taxpayer Bill of Rights can apply in specific situations. 1 The Right to Be Informed. 2 The Right to Quality Service. 3 The Right to Pay No More than the Correct Amount of Tax. 4 The Right to Challenge the IRS’s Position and Be Heard. 5 The Right to Appeal an IRS Decision in an Independent Forum. 6 The Right to Finality. 7 The Right to Privacy. 8 The Right to Confidentiality. 9 The Right to Retain Representation. 10 The Right to a Fair and Just Tax System.#N#Our TAS Tax Toolkit at TaxpayerAdvocate.irs.gov can help you understand these rights and what they mean for you. The toolkit also has examples that show how the Taxpayer Bill of Rights can apply in specific situations.
1546, Taxpayer Advocate Service -- Your Voice at the IRS, and on our website at irs.gov/advocate. You can also call us toll-free at 877-777-4778.