Tax attorneys specialize in tax law, offering valuable assistance for complex tax issues like disputes, compliance, and estate planning. Here’s a concise guide to their role and how to hire one:
What Does a Tax Attorney Do?
- Tax Planning: Optimize tax strategies for individuals and businesses.
- IRS Disputes: Handle audits, appeals, and lawsuits against tax authorities.
- Estate Planning: Help minimize estate taxes, set up trusts, and ensure smooth asset transfers.
- Business Taxes: Provide strategies for starting, expanding, or selling a business.
- Tax Debt Relief: Assist with:
- Offers in compromise
- Innocent spouse relief
- Installment agreements
When to Hire a Tax Attorney
- Complex Tax Situations: Such as inheritance, international taxes, or unique business structures.
- IRS Audits or Disputes: Need representation in tax court or hearings.
- Tax Relief: Negotiating with the IRS for reduced payments or settlements.
- Estate Management: Planning to minimize taxes and set up trusts.
- Starting or Selling a Business: Structuring deals to optimize tax outcomes.
How to Find a Tax Attorney Near You
- Check State Bar Associations: Use their directories to find licensed tax attorneys.
- Seek Recommendations: Ask trusted friends, financial advisors, or colleagues.
- Verify Credentials:
- Law License: Confirm through the state bar.
- Advanced Education: Look for an LL.M. in taxation or CPA certification.
- PTIN (Preparer Tax Identification Number): Required for preparing tax returns for compensation.
- IRS Directory: Use the IRS database to find qualified attorneys.
Questions to Ask a Tax Attorney
- What are your credentials and experience?
- Do you specialize in my type of tax issue?
- How will we communicate, and what is your availability?
- What are your fee structures (flat rate or hourly)?
Costs of Hiring a Tax Attorney
- Hourly Rates: Average $369-$409 per hour, depending on experience and location.
- Fee Structures: Some may charge flat rates for specific services.
How to Get Free or Low-Cost Tax Help
- Low-Income Taxpayer Clinics (LITCs): Offer free assistance for qualified individuals. Services include:
- Representation during audits or disputes.
- Resolving account issues with the IRS.
- Taxpayer Advocate Service Website: Locate an LITC near you.
Tax attorneys are invaluable for navigating intricate tax situations, ensuring compliance, and resolving disputes. Whether you're planning your estate, handling tax debt, or starting a business, hiring the right tax attorney can save you time and money.
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