Tax Lawyer

Taxes are the lifeblood of government. Hence, an inevitable part of the life of every citizen is the payment of taxes. Because not all citizens, however, can comply with their obligation to file income tax returns and pay correct taxes whether due to fault or mere negligence, they may get themselves into trouble with the Internal Revenue Service (IRS), the federal government agency in the United States entrusted with revenue collection and the enforcement of tax laws. Faced with the intricacies and dynamism of U.S. tax laws, a taxpayer may have difficulty in settling his taxes with the IRS and worse, even face criminal prosecution. Confronted with IRS problems, a taxpayer may find himself in a better defensive stance with a tax lawyer.

Whom can a tax lawyer help?

A tax lawyer is an attorney specializing in taxes, taxation and the Internal Revenue Code. The main goal of a tax attorney is to work with the taxpayer to find ways to solve tax problems. Among the taxpayers that a tax counsel may help are those who:

  • did not file a return,
  • filed a false return,
  • filed a fraudulent return with intent to defraud,
  • did not pay tax,
  • did not pay the correct amount of tax,
  • paid tax under protest,
  • are protesting an assessment by the IRS,
  • are claiming tax exemption,
  • are claiming a tax credit or
  • are claiming for a tax refund.

Services Offered by Tax Law Firms

The propriety of a tax lawyer coming from a law firm is to arrive at solutions to avoid future tax problems and if one should already be present, to analyze and find an answer to it. These are the common services of a tax counsel:

  • Filing of returns,
  • Auditing and examination of returns,
  • Tax planning,
  • Setting up legal defenses,
  • Facing tax civil cases and
  • Representation in criminal case for violation of tax laws (may also be accomplished through a federal lawyer).

One of the most significant roles of an IRS tax attorney is to remove or at least minimize the effects of the collection remedies undertaken by the IRS. Among the options the taxpayer may choose from are the following:

  • Abating and/or reducing tax interests and penalties,
  • Removal of tax liens,
  • Lifting of distraint of wage and other receivables,
  • Discharge of garnished bank deposits and
  • Cancellation of levy of real property and other assets.

 A tax lawyer can provide also alternatives to the taxpayer to decrease the amount of payable taxes and prevent a possible criminal case. The following are defenses and tax payment reliefs available to a taxpayer that can be entered into with the help of counsel:

  • Innocent Spouse Relief,
  • Installment Agreements,
  • Offer in Compromise Settlements,
  • Payment Plan Negotiations and
  • Tax Amnesty.

Why choose a tax lawyer from other tax professionals?

It is a common notion that tax attorneys are no different from other tax preparers such as accountants, certified public accountants (CPAs), bookkeepers and enrolled agents. However, tax attorneys are better equipped to analyze and deal with tax legal problems compared to them.

 

  1. Competency - Because of their specialization, tax lawyers are better in the following areas: information gathering, analysis of the problem, spotting the issue, making legal research, interpretative creativity, negotiation and procedure in the IRS. Lawyers specializing in taxation have tax laws at their finger tips even if compared to fellow lawyers who do not specialize in the same field. For instance, in income taxation, an income tax lawyer would fare better in the subject than one whose forte is insurance law.
  2. Confidentiality - The legal profession is bound by a creed of confidentiality when it concerns clients. The attorney-client privilege then bars the IRS and even the court to inquire into communications between a tax attorney and a taxpayer-client. A taxpayer then can trust a lawyer with any confidential information unlike to other tax professionals who can be summoned in court to testify against a client.
  3. Representation - Not only can tax attorneys help a client in solving tax problems but they can also make representations. A taxpayer need only execute a power of attorney to authorize the counsel to appear before the IRS in his or her behalf and after which, his or her presence will no longer be required in administrative proceedings. Civil and criminal cases, which are also consequences of tax problems, can be solved by hiring a tax counsel.