What Does A Tax Attorney Do?

Tax Resource

Written by Tax Relief Systems

Last Updated

Tax Attorney with MacBook making calculations

Have you ever wondered what a tax attorney does? It’s a specialized field of law that can be intimidating and confusing to the uninitiated. But understanding what a tax attorney does is essential for anyone looking to properly manage their finances. In this article, we will discuss the role of tax attorneys, how they can help you, and why they may be necessary for some financial situations.

The first thing to know about tax attorneys is that they specialize in taxation law, meaning they understand the ins-and-outs of the federal and state taxation systems. Tax attorneys are able to provide strategic guidance on how best to approach your finances in order to reduce or eliminate any potential tax consequences. They are also able to assist with complex matters such as filing back taxes or negotiating an offer in compromise with the IRS.

Tax attorneys provide invaluable advice when it comes to numerous financial matters, such as estate planning and business law. Additionally, if you find yourself facing an audit or criminal investigation for possible tax fraud, having a knowledgeable attorney by your side is key. A good tax lawyer will not only provide legal guidance but also work hard to protect your interests throughout the process.

Now that you know more about what a tax attorney does, let’s explore some of the other ways that these professionals can help you navigate your finances.

Who Can Benefit From Hiring A Tax Attorney?

A tax attorney can be a valuable asset for anyone struggling with their taxes. They provide expertise and advice on complicated tax matters, helping individuals and businesses understand their rights and obligations under the law. Knowing when to hire a tax lawyer can make a huge difference in one’s financial situation.

Individuals who are facing an audit or investigation from the IRS may benefit from the expertise of a tax attorney. Tax attorneys know how to navigate through the complex legal system and can help protect taxpayers from fraud or other criminal activity. Tax lawyers also understand the intricacies of various state and federal laws, providing clients with guidance on filing returns correctly and avoiding potential penalties.

Businesses that are dealing with complex taxation issues can also benefit from having a knowledgeable attorney on their team. A good tax attorney will help businesses ensure they comply with all applicable laws while finding ways to reduce their taxable income. In addition, they know how to negotiate settlements with the IRS, which can save companies time, money, and energy in the long run.

What Services Do Tax Attorneys Provide?

Tax attorneys provide a variety of services to clients. They can help individuals and businesses with preparing, filing, and appealing tax returns, as well as representing them in cases related to tax law. Additionally, tax lawyers are knowledgeable about the various deductions and credits available so they can advise their clients on which ones best suit their needs.

Tax lawyers also provide advice on financial planning, estate planning, trust administration, business structuring and reorganization, asset protection strategies and more. They can assist with IRS audits or disputes by providing legal counsel and representation throughout the process. They may also provide assistance in negotiating settlements or payment plans with the IRS or state agencies on behalf of their clients. Finally, they can help resolve any issues that arise due to non-compliance with applicable laws or regulations.

Tax attorneys are knowledgeable in numerous areas of tax law which allows them to provide comprehensive services that cover all aspects of taxation for individuals and businesses alike. With this expertise they are able to help clients navigate through complicated legal matters while ensuring that they remain compliant with all applicable laws.

Tax Planning Strategies

A tax attorney can help individuals and businesses maximize the amount of money they keep from their income by developing tax planning strategies. These strategies are designed to reduce taxes owed, taking into account all legal deductions, credits, and other exemptions available.

There are three primary areas of tax planning that a tax attorney will focus on:

  1. Maximizing deductions: This involves identifying all deductible expenses associated with earning income and utilizing them in a way that reduces the amount of taxes owed.
  2. Tax credit optimization: This involves understanding which credits are available for different types of income and ensuring that the maximum amount is claimed each year.
  3. Minimizing capital gains taxes: This involves strategically selling investments or assets in order to minimize capital gains taxes while still realizing the maximum benefit from those assets.

An experienced tax attorney can help ensure that all available strategies are utilized to reduce taxes owed while staying within the confines of the law. By taking advantage of these opportunities, clients can save money and increase their overall financial security in the long run.

Representation During An IRS Audit

A tax attorney can provide representation during an IRS audit. It is essential to have a qualified professional to represent you throughout the audit process. An experienced attorney will be able to identify any potential issues before they arise and can help resolve them quickly and efficiently. They will also be able to advise on any disputes that may arise during the audit.

The attorney can provide assistance with gathering the necessary documents for the audit and preparing responses for any questions that may come up during the process. The attorney may also review the results of the audit, negotiate with the IRS on your behalf, and make sure that any errors are corrected in a timely manner before they become more serious problems. Furthermore, they can help you understand how to properly appeal any decisions made by the IRS or challenge their findings if needed.

Having an experienced tax attorney representing you during an IRS audit ensures that you are protected from costly mistakes or misunderstandings of regulations and laws. They can work to minimize potential penalties and maximize refunds due, helping you avoid financial difficulties down the road. With their knowledge and expertise, they can provide invaluable guidance throughout this often stressful process.

Assistance With Filing Back Taxes

Moving onward, a tax attorney can also help with filing back taxes. This involves looking through records to identify any missed or late payments and rectifying the situation. It is important to get caught up on past taxes in order to avoid any penalties or interest fees that may have accrued over time. A tax lawyer can provide valuable assistance in this area:

  • Reviewing past returns to identify any discrepancies
  • Negotiating repayment plans with the IRS
  • Working with the IRS to settle any outstanding debts

The process of filing back taxes can be lengthy, so having a knowledgeable and experienced professional on your side can make it much easier. Tax attorneys are familiar with the IRS regulations and know how best to approach each situation. They can advise on the best course of action and make sure that all necessary paperwork is completed correctly and submitted on time. By doing so, they save their clients from possible legal complications down the line.

Negotiating Payment Plans And Settlements

A tax attorney helps clients determine the best way to handle unpaid taxes. This includes helping them negotiate payment plans or settlements with the IRS. Payment plans are arrangements that allow taxpayers to pay off their tax debt in installments over time. In some cases, a payment plan may also involve reducing the amount owed on taxes. Settlements, on the other hand, involve full or partial forgiveness of taxes due.

To negotiate a payment plan or settlement, a tax attorney works with the IRS to determine what is fair and reasonable for both parties. The attorney will review financial documents and other information related to the taxpayer’s situation in order to arrive at an agreement that is beneficial to both sides. This process can require extensive back-and-forth negotiations between the taxpayer and their legal representative and the IRS before settling on an acceptable arrangement.

Tax attorneys also provide advice to clients about ways they can reduce their tax burden in the future, such as by making estimated payments or taking advantage of available deductions and credits. They can help ensure that all applicable fees are paid on time and that any potential disputes with the IRS are resolved quickly and efficiently.

Preparation And Filing Of All Necessary Documents

Now that the payment plans and settlements have been successfully negotiated, a tax attorney can move on to the next step: preparing and filing all necessary documents. This can include preparing and submitting returns, applications for deductions, filing amended returns, or responding to an audit or dispute.

A tax attorney is uniquely qualified to help with these tasks due to their expertise in federal and state tax laws:

  • Drafting appropriate documents
  • Submitting forms correctly
  • Ensuring accuracy of paperwork
  • Understanding deadlines
  • Keeping up with changing regulations

These tasks are essential for ensuring clients are compliant with all applicable laws. A tax attorney’s experience in this area ensures that all relevant documents are completed accurately and efficiently. Additionally, having a professional handle the paperwork helps to ensure that clients remain in good standing with the IRS.

Estate And Gift Tax Planning

A tax attorney can help individuals plan their estate and gift taxes. They advise clients on how to minimize the taxes they owe on gifts, inheritances, and other transfers of wealth. Through careful planning, a tax lawyer can help their client save on taxes while preserving their wealth for future generations.

Tax attorneys also assist in creating trusts that are designed to protect assets from estate and gift taxes. Trusts can be used to create incentives for family members by distributing assets over time. Tax attorneys understand the complexities of estate planning and can ensure that clients receive the maximum benefits for their investments.

A tax attorney will also review an individual’s current financial situation and provide guidance about any potential changes that may need to be made. They can provide advice about investments, retirement plans, insurance policies, and other financial matters. With the assistance of a qualified tax lawyer, individuals can ensure that their estates are managed properly and efficiently in order to maximize the value of their investments while minimizing any potential liabilities.

International Tax Assistance

A tax attorney can provide international tax assistance to their clients. This type of assistance may include providing legal counsel on cross-border transactions and helping to establish international business operations. They can also advise on the proper filing of foreign taxes, as well as any associated compliance requirements. In addition, they are experienced in navigating the complexities of offshore accounts and other assets held by non-residents.

Tax attorneys have a thorough understanding of the provisions that govern international taxation, including double taxation treaties and transfer pricing regulations. They can help their clients identify applicable incentives and opportunities for deferring or reducing taxes. Furthermore, they can provide guidance on structuring investments abroad so that they are tax-efficient and compliant with local laws.

Tax lawyers are uniquely qualified to offer comprehensive solutions for businesses looking to expand internationally. By leveraging their extensive knowledge of international taxation, they can assist clients in both the short-term and long-term planning process. They can ensure that all legal aspects are taken into account when making decisions regarding international growth strategies.

Investment Advice And Asset Protection Strategies

A tax attorney can provide invaluable advice regarding investment opportunities. They can help to assess the various risks associated with different types of investments, such as stocks, bonds, mutual funds and other financial instruments. They are also knowledgeable about asset protection strategies that may be beneficial in helping to preserve wealth.

One type of asset protection strategy is setting up a trust or charitable organization. A trust allows assets to be transferred to someone else without incurring gift or estate taxes. The trustee is responsible for managing the assets and making decisions on their behalf. Charitable organizations allow individuals to donate money and property to benefit a cause they care about while also receiving tax deductions.

Tax attorneys can also advise on filing taxes correctly and handling disputes with the IRS when necessary. They understand the complexities of tax law and can help ensure that individuals are in compliance with all applicable laws and regulations. By taking advantage of their expertise, individuals can make informed decisions about their investments and protect themselves from potential penalties from the IRS.

Reviewing Contracts For Potential Liability Issues

A tax attorney helps clients review contracts for potential liability issues. They identify all relevant legal and regulatory requirements, as well as any areas of potential risk or exposure. They also provide advice on how to minimize risk and protect the client’s interests.

Here are 4 key tasks a tax attorney performs when reviewing contracts:

  1. Analyze the language of the contract to ensure it is legally binding and enforceable.
  2. Examine all parties’ responsibilities under the terms of the agreement and determine where gaps may exist in understanding or performance.
  3. Assess potential tax liabilities resulting from contractual obligations, including those related to employee compensation, independent contractor agreements, business purchases, investments, etc.
  4. Research applicable local, state, and federal laws that must be adhered to in order to comply with contractual requirements.

Tax attorneys provide invaluable assistance in determining whether a contract is legally sound and appropriate for their clients’ needs. They help clients understand the implications of entering into a contractual agreement so they can make informed decisions about their legal obligations and liabilities.

Resolving Business Disputes With The IRS

Now that you have a better understanding of reviewing contracts for potential liability issues, let’s discuss how a tax attorney can help resolve business disputes with the IRS. A tax attorney is an expert in navigating and negotiating complex tax laws, particularly when it comes to resolving disputes with government entities. These professionals are knowledgeable in not only the legal aspects of dealing with the IRS, but also the strategic components of dispute resolution.

Tax attorneys can work directly with businesses and individuals to provide advice on how to best handle their IRS issues. This could include providing guidance on what documents to submit, representing clients in negotiations with the IRS or other tax agencies, filing appeals on behalf of clients, or simply helping clients understand their rights and responsibilities under current taxation regulations. Additionally, they may offer assistance in restructuring debt obligations or renegotiating payment plans so that businesses or individuals can remain in compliance with federal tax laws.

In some cases, tax lawyers may even be able to reduce taxes owed or ensure that penalties are waived for taxpayers who have made honest mistakes due to ignorance or oversight. With their deep knowledge of complex taxation laws and strong negotiation skills, tax attorneys are invaluable when it comes to resolving business disputes with the IRS.

Education On New Tax Laws And Regulations

A tax attorney educates their clients on new tax laws and regulations. Tax attorneys must stay up to date with the constantly changing laws and regulations in order to provide the best advice for their clients. They are often required to attend seminars and take classes in order to remain knowledgeable about changes in tax law.

Tax attorneys must have an understanding of both federal and state laws, as well as international tax law when applicable. They use this knowledge to ensure that their clients are compliant with all current regulations. Tax attorneys also advise their clients on potential strategies they can use to minimize their taxes, such as taking advantage of available deductions or credits.

Tax attorneys help protect individuals and business entities from any potential criminal or financial liabilities associated with not following the rules laid out by the IRS. They ensure that any necessary forms are filed correctly and on time, helping to avoid any potential taxation issues that could arise due to non-compliance. In addition, they may represent their clients during audits or negotiations with the IRS if needed. Overall, a tax attorney is essential for anyone who needs help navigating the complexities of taxes in today’s world.

Contact Tax Relief Systems

In conclusion, a tax attorney is an important asset for individuals and businesses. They provide a variety of services from tax planning strategies to representing clients during an IRS audit. On top of that, they can provide investment advice, asset protection strategies, and review contracts for potential liability issues. Plus, if you ever find yourself in a dispute with the IRS, a tax attorney can help resolve it quickly and efficiently.

Tax attorneys are also great at staying up-to-date on new tax laws and regulations so they can properly advise their clients. This ensures that their clients are always compliant with the current laws and regulations when filing taxes or dealing with the IRS.

Overall, tax attorneys are invaluable assets to those who need assistance navigating the complex world of taxation. They offer much needed guidance and support on everything from filing taxes correctly to resolving disputes with the IRS. Hiring one could be the best decision you make this year!

Contact Tax Relief System’s office and request a free consultation today!

Free Consultation