Tax planning lawyers provide invaluable services to individuals and corporations by structuring their financial affairs to reduce their tax loads and avoid a tax audit. A tax lawyer focuses on taxation. These professionals assist individuals in organizing their money to optimize their financial situations, comply with tax rules, and resolve disputes with the IRS or other tax authorities. These professionals may specialize in areas like inheritance, cross-border taxation, or corporate taxes. So, if you’re dealing with any such complex tax situation, hiring a competent tax lawyer can be a wise decision.
How to Find a Tax Lawyer?
Tax lawyers are usually employed by law firms or accounting businesses. You may also find sole proprietors, which means they run their own enterprises and work for themselves. You may need to hire a tax lawyer for two primary purposes- tax planning and navigating tax audits. Tax planning lawyers help high-net-worth people and organizations organize their financial affairs in a way that lowers their tax payments while avoiding an IRS audit. If you intend to start a business, or if you must handle a large sum of money, you may need to visit a tax planning lawyer. Tax lawyers can also defend businesses and individuals against IRS or state tax agencies’ audits, investigations, or legal actions.
For whatever reason you may need a tax lawyer, make sure you choose a highly experienced professional. In this post, you’ll find some helpful tips to choose the right tax lawyer.
1. Credentials & Specialization
You should look for a lawyer who is licensed and has good standing in the legal field. The lawyer should be licensed to practice law in the state court. Municipalities, states, and the federal government can all levy taxes. You should find a specialist who has competence in the area of tax law that your circumstance requires. Make sure the lawyer has education and licensing in the area in which you require assistance. At a minimum, the lawyer should have the federal district court bar membership or licensure. They should be qualified as Juris Doctor (J.D) or have an L.L.M. (Master’s Law Degree) in taxation.
2. Years of Experience
Sometimes, you might land in trouble if the IRS detects an error in your tax filings. When the IRS will be auditing your firm, you will want a lawyer who is well-versed in dealing with the IRS. So, look for a tax lawyer with substantial experience in handling IRS issues and disputes. Schedule an initial consultation and ask the lawyer about their knowledge and experience of the IRS’s inner workings. If you already have a case in court, you should contact a tax litigator with decades of experience.
3. Service Charge
You need a lawyer with a good track record and affordable service charges. It’s good to have an idea of how much legal representation will cost you before hiring a professional. The service charge usually depends on the complexity of your case. The cost of estate tax planning is not the same as cross-border tax planning. Moreover, costs also varied from one law firm to another. Some tax attorneys charge an hourly rate, while others charge a fixed fee.