Taxes, Lawyers, Business & Debt

What Does a Tax Lawyer Do?

When a taxpayer runs into a problem with the IRS (Internal Revenue Service) or their state's revenue department, they can usually solve it themselves. However, the tax laws in the United States are very complicated, and for major cases, you'll be a lot better off hiring a tax lawyer. In this article, you will learn more about what a tax lawyer does, and how their legal expertise can help you solve your tax issues.

A tax lawyer's specialty is working with the average taxpayer to solve their state revenue board or IRS troubles. They usually focus just on tax relief and other issues. A tax lawyer can help taxpayers through a long and tedious audit, and they can also work to have tax penalties reduced, liens taken away, and they are experts at navigating through the long and complicated codes surrounding self-employment and small business taxes. Most small business owners have a tax lawyer, and they are usually considered to be just as important as the accountant, because a tax attorney that's worth their salt will help to solve tax problems before they even start. Tax lawyers are good at seeing a business' potential trouble areas, and they offer advice on how best to avoid them.

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The tax laws in the United States aren't only long and intricate, they change on almost a yearly basis. A good tax lawyer will keep up with the most recent changes in the tax code, and can advise their clients accordingly. A tax lawyer is also useful when a person is setting up a trust fund or stock portfolio, and their help will ensure that there aren't any unpleasant surprises at tax time.

If you are looking for a tax lawyer, you shouldn't settle for the first one you find in the Yellow Pages. Look around, and ask friends or family for references. If you have a general attorney, they can most likely refer you to a colleague who is a tax lawyer. As a potential client, look for a tax lawyer that has extensive IRS experience, debt management experience, and years of working with regular taxpayers. Before hiring a tax lawyer, be sure to ask for references, and make sure that the attorney is certified by the American Bar Association and the bar association of the state they practice in. It's also a good idea to know beforehand what your lawyer's rates are, and to negotiate a payment plan.

If you find yourself in over your head with the IRS, you should consult a tax lawyer. Tax penalties tend to accrue over time, and it's almost always in your best interest to get tax problems solved before they become bigger. Waiting to see a tax lawyer could be a costly mistake, and can result in higher legal fees, IRS sanctions, and in rare cases, jail sentences.