What Can A Tax Attorney Do For Me: It is said that amongst all the types of law statutes that exist, the most intricate and complicated to figure out are taxation laws. In the United States, calculating taxes is often a tedious task due to the extremely complex and intricate nature of the tax statutes. However, calculating the right amount of tax that is owed to the state is not just important from a legal perspective, but also from the perspective of financial prudence. It is only when you know the tax statutes properly that you can also calculate the deductions that you are entitled to, and save as much money as possible.
While a lot of people choose to file their tax returns themselves, the process of figuring out how much you have to pay, how much you are entitled to deduct, and the overall process of filing your returns can be daunting to most people. It is for this reason that a tax attorney is a great option for those who want to simplify the process of paying taxes.
When to I hire a tax attorney, and how will they help?
Every attorney usually picks a specific field or practice area to specialize in, and the speciality of a tax attorney is obviously matters pertaining to tax. If you have any complexities involved in your case (such as some specific deductions) or you are unable to take time off to figure out your taxes, the best course of action would be to hire an attorney that specializes in taxation matters. Ensure that you pick an attorney that is certified and capable of dealing with tax laws. Furthermore, it is also important to remember that tax laws might change from one state to another, and jurisdiction matters. Therefore, it is important to choose an attorney who has specific experience in that particular jurisdiction.
Another instance where you are likely to need the assistance of a tax attorney is when an action has been initiated against you by the IRS. In such a scenario, having legal representation becomes tremendously important. Here are some ways in which it will help you secure a favourable outcome by hiring legal representation for yourself.
Lack of knowledge about taxation matters
Most people who are filing their taxes are not familiar with the intricacies of taxation law. While a lot of people are under the misconception that it is not hard to do, the fact of the matter is that even a simple miscalculation can lead to potentially catastrophic consequences. Furthermore, a lack of knowledge about deductibles can cost you a significant amount of money too. While it might be a simple calculation error on your end, this may even lead to the IRS auditing your income, resulting in problems for not just you but your entire family. Therefore, if you are not aware about how tax laws work, and want to ensure that you calculate taxes per the legal provisions, it is helpful to hire a taxation attorney.
How a tax attorney can help: Tax attorneys are familiar with taxation laws, and it is their subject of expertise. They have the requisite knowledge to compute taxes without an error, and they are also likely to know what deductibles you can claim for a rebate on the amount of tax that you will have to play. Furthermore, if you are involved in an audit by the IRS, the attorney can help you successfully navigate that as well.
If you are buying or selling a business
A merger or an amalgamation, or a demerger, whatever the size or extent has tax implications for both the buyer and the seller. Per the US tax code, there is a separate calculation of taxes apart from normal protocol in case of purchase or sale of the business. This is termed as a capital gains tax, on the side of the seller. On the buyers’ side, there may be attempts made to set off the tax by presenting depreciated values. However, one thing that is certain is that this can be hard to navigate without sufficient knowledge about how taxes work, and what the tax law entails. Even for those who usually prepare their tax filing themselves, it may be better to hire an attorney for tax purposes during the sale or purchase of business due to the specific circumstances that it involves.
How a tax attorney can help: A tax attorney is well-versed with filing taxes not just ordinary, but also for specific instances such as during the purchase or sale of a business. Given that the process is entirely different in this case, the expertise of a tax attorney can prove to be significantly helpful and beneficial.
Transfer of property to heirs
One of the main reasons as to why anyone chooses to acquire wealth or property is so that they can leave behind enough for their dependents to lead a comfortable and healthy life. It is therefore no surprise that transferring property to heirs is a common practice. However, it is important to remember that even if this is done within the family, and for no cost, this type of transfer also attracts tax. Depending on the size of the estate and the type of assets being transferred, the tax that is involved can be significantly high. For instance, a high amount of estate tax is applicable in cases where the cost of the estate is beyond $11 million, per the IRS guidelines. Even if the cost of the estate is below that value, tax liability still accrues in most cases such as these.
What Can A Tax Attorney Do for me: If you are planning to transfer your assets to anyone in your family, or to your heirs, it can be tremendously helpful to seek the counsel of an attorney that specializes in matters related to estate planning and taxes. Not only can such an attorney help navigate the legal process of the actual transfer, but also help you deal with the tax related aspects of such a transfer as well. While some people assume that it is a waste of money to seek the assistance of an expert, it makes the entire process much easier and streamlined.
When you have been accused of tax fraud
If any action has been initiated against you by the IRS, or if you have been served a notice by the IRS, it can be a pretty daunting scenario. Most people are nervous if this happens, and do not know how to navigate the process successfully. Considering that the consequences and the potential ramifications of this are significant, it is important to ensure that you have adequate legal representation if this happens to you. While you may not have had any mala fide intentions behind the entire process, even an error can lead to such a circumstance. Hiring legal representation can help you deal with the situation successfully.
How a tax attorney can help: A tax attorney is not just well versed with the laws of taxation, but also with how the IRS functions, what to do if they serve you a notice, etc. If there has been any error in the way that you have filed or presented your taxes, they can help you rectify that error successfully as well. Therefore, to ensure that you do not get into legal trouble, it is highly recommended to hire legal representation if an action has been initiated against you legally in taxation matters.
You owe back taxes
Back taxes are those taxes which are owed and accrued, but not yet paid. Even though a person may be responsibly paying taxes to the authorities every month, there may arise a situation where you have owed taxes previously to the state government or the federal government that remains unpaid. In such a scenario, calculating the amount of back taxes owed and that has to be paid is also quite a task. Having an attorney assist you in this process can make the entire job much easier for you.
What Can A Tax Attorney Do For Me: A tax attorney can first and foremost help you calculate the exact amount that is owed to the IRS on your behalf. Furthermore, if it is a large amount of money, a good tax attorney can help you come up with a plan to pay the taxes back without causing any financial trouble or distress for you, such as in the form of monthly instalments or annual instalments. Furthermore, if you find yourself unable to compute the exact amount that is owed, you may land yourself in further trouble too. This can also be avoided if you hire legal representation at the right time.
How to find a tax lawyer near me
It is not difficult finding a tax lawyer in your vicinity as long as you do the right kind of research based on what sort of services you require and expect from your attorney. If your primary motive is to find a lawyer that can help you calculate the amount of taxes that you owe to the state, you should focus on a lawyer that explicitly mentions this as their expertise. On the other hand, if you are looking for a lawyer that can represent you in tax related legal matters, it is important to find one with that skill set.
Most people have the option to choose between a tax professional and a tax attorney. A tax professional is not necessarily a lawyer, but can help you out with issues related to taxation such as the deductibles you are entitled to, and calculating the amount of tax that you owe. On the other hand, a tax attorney is a qualified lawyer who specializes in matters that deal with taxation. If you find yourself needing representation while dealing with the IRS, or find yourself engulfed in a legal matter to do with taxation, a tax attorney is a preferable choice.
Do your research online: The internet has a variety of resources on a number of things, and finding a lawyer is also something that you can do through the internet. Depending on which jurisdiction you belong to, what sort of services you expect from your attorney, and what your budget is, you can settle on a suitable attorney. Usually, most attorneys have their own websites and contact information which you can use to contact them and see if they are the right fit for you. Ensure that you go through their websites yourself, see if there are any client testimonials, and check out their range of expertise. You can also directly enquire about what you need information on, and see which attorney responds the best to your needs.
How much does a Tax Attorney cost?
As with any other type of attorney, the cost of a tax attorney is mostly dependent on the case at hand, how many hours the attorney will have to spend on it, and what sort of expertise it entails. Usually, the two main modes of payment that tax attorneys charge is either in the form of an hourly rate, or in the form of flat sum retainer. There are advantages and disadvantages to both these models.
Hourly rates: Hourly rates are usually charged by attorneys with significant expertise in the subject that they are dealing with. Usually, with tax attorneys, the hourly rate can range from anywhere between 200$ to 400$, depending on the case at hand and the expertise of the attorney.
Flat rates: Flat rates are usually paid to the attorney in the form of a commission when the case has been won. Flat rates are negotiable, and usually more affordable for those who cannot afford to retain their attorneys by the hour. If you have a smaller budget, you may prefer the services of an attorney who charges a flat rate.
Tax is certainly a complex branch of law and a lot of people find it daunting to calculate their taxes themselves. If you have unfortunately gotten yourself into legal trouble or been served a notice by the IRS, it becomes even more necessary to understand tax law, which is usually out of the reach of an average person. It is here where hiring a tax attorney can be of immense benefit.