Tax Attorney

A tax attorney is a lawyer who specializes in interpreting and applying tax laws and policies. Tax attorneys can provide their clients with a wide range of services, including tax preparation and filing.

What exactly does a tax lawyer do?

Tax lawyers representing private clients will meet with clients to advise them on potential tax liability (for example, when buying or selling assets) and the best way to mitigate that liability.

Tax lawyers who represent businesses frequently collaborate with other legal teams as part of a larger transaction, as almost all commercial transactions involve tax implications. Typical transactions may include tax advice on mergers and acquisitions, property deals, restructurings, and all types of finance, such as funds, equity, and debt.

HMRC is the government agency charged with bringing legal action against a company or an individual. They may also be called upon to defend the government in legal proceedings. HMRC lawyers are involved in advising on the application of new taxation laws, which occur regularly.

Tax attorneys stay current on tax issues and laws to serve as a resource for their clients. Tax attorneys typically have the following responsibilities:

  • Legal Research

 To understand tax law and policy, tax attorneys must conduct legal research. Because laws change frequently, tax attorneys must be able to locate and reference the most recent legal codes.

  • Document Drafting

These individuals create and maintain documents such as wills, employment-related agreements, court briefs, and tax forms.

  • Handling Tax Disputes

Tax attorneys assist their clients in resolving tax-related disputes. They may negotiate with the IRS on behalf of their clients.

  • Client Representation in Court

A tax attorney may defend or advise clients in court as needed.

  • Providing Legal Advice to Clients

 Clients frequently seek advice on tax-related issues such as retirement, mortgages, and income.

The distinction between a tax attorney and a certified public accountant(CPA)

A certified public accountant (CPA) holds a five-year degree and is well-versed in taxes. CPAs are versatile financial planners with a wide range of abilities. Auditing, bookkeeping, year-round financial record keeping, tax preparation, and estate planning are all services they provide.

CPAs provide advice on topics such as business strategies, investments, real estate, and IRS issues. They frequently review and audit a company’s financial records to improve problem areas. CPAs can also assist clients with more complex tax issues, such as owning a small business, making high-value investments, or getting out of IRS debt.

While tax attorneys are knowledgeable and versatile about tax issues, they are also lawyers who have completed law school and passed the bar exam. They concentrate on tax-related disputes, tax liabilities, and tax litigation representation.

 Although CPAs have the authority to represent clients in IRS disputes, tax attorneys have more courtroom training and experience. They usually have better negotiating skills, a better understanding of legal principles, and more experience with case law. Tax attorneys are bound by attorney-client privilege, meaning that any information provided is strictly confidential.

A CPA is an excellent choice if you need assistance with tax preparation, year-round financial record keeping, or estate planning advice. A tax attorney is an excellent choice if you are facing potential criminal charges from the IRS, need legal advice on taxes, or require attorney-client privilege.

Why Should You Hire a Tax Lawyer?

Tax lawyers have a background that allows them to represent you in court while also being well-versed in tax laws (and your rights). That is an enticing reason, but it is not the only one. Most notably, when you hire a tax attorney, you are protected by the attorney-client privilege. This means that even if you’re “guilty” or made a deliberate error on your taxes, your attorney cannot testify against you.

Though there is no guarantee that you will be rewarded with a favorable outcome, you can be confident that you will have someone on your side who is loyal and will do everything possible to protect your finances and your freedom.

How much does a tax attorney charge?

Legal work is costly in general. According to a survey conducted by Martindale-Avvo, a legal marketing and directories firm, tax attorneys charge an average of $295 to $390 per hour. The length of the attorney’s experience can shift the figure lower or higher.

According to the firm’s data, 37% of people who use legal representation for taxes spend between $0 and $5,000, and another 14% spend between $5,000 and $100,000. A quarter of the work is done pro bono or for free, and 4% is done on a contingency basis (where the attorney receives a portion of the damages, if any are awarded).

Choosing the Best Tax Attorney

You should consider certain criteria before hiring a lawyer, regardless of the type of lawyer you seek. Given that your case will be unique, you’ll want to find a lawyer who:

  1. Has the necessary training

 You want to find a lawyer who understands your problem and can demonstrate that they have the necessary training to assist you.

  1. Is a licensed attorney in your state

 A lawyer must pass a state bar exam in each state where they wish to practice, so ensure that the lawyer you hire is licensed to practice law in your state.

  1. Has some prior experience

While we all recognize that on-the-job training is valuable and necessary, you want to avoid the new guy representing your important (and likely expensive) case. Look for a lawyer who has handled cases similar to yours.

  1. Is a good fit for you and your requirements

 Some people irritate us, so you must find a lawyer with whom you can work. You want them to be someone you can talk to openly and honestly to ensure that your problems are properly addressed.

The Bottom Line

Tax attorneys can be a great help for several reasons, some of which have been discussed above. If you want to hire a tax attorney in California, then you must consult