What Questions to ask a Tax Attorney

When you meet a tax attorney, you surely want to retain what you earned all year round rather than surrendering it to the government in the form of tax. So, during this meeting with your tax attorney, you must make sure that you ask the best questions to your attorney to get the most out of him and through which he can help you by getting a maximum tax refund.

First of all, before hiring a tax attorney, you must ask him the following questions:

What type of tax law area do you specialize in?

Many tax attorneys can specialize in various areas of tax, but you are required to know whether he/she  is an expert in your tax area or not. You must ask them about the earlier works that they performed in your legal area and the outcomes of their performance.

How much of your practices are been devoted to solving the tax problems?

Before you hire someone to file your tax returns, you must make sure that you ask them whether they are specialized tax attorney who can handle tax controversy and tax debt relief cases for you. You have a person you can hire to file your tax returns if they can.

Why are you working in this area of law?

Maximum people who are not genuine would be stumped out at this point. This question will help you evaluate whether to deal with that respective Tax Attorney. If he/she is pretty good at answering this question, you can indeed work with that person because you can learn about all their policies and their main objective to join the post of Tax Attorney.

What are his fees?

You need to know whether the tax attorney you are going to hire is coming under your budget or not; if not, then you must talk to them generously and then slip out of the situation.

Can he help you in your case?

This is just a follow up-question to make sure that he is ready to help you in your case and let you retain the maximum of your money with yourself rather than giving it to the government.

After such questions, when you find your rightful Tax Attorney, you must ask the following questions before they file your tax.

What informations do you need from me?

Prepare all the necessary documents while preparing the tax return, like receipts, financial statements, tax return forms, etc., to reduce the chaos during the end of the tax season. You will not reduce your taxable amount by preparing these documents, but you can surely take less time filing the tax returns.

What are the standard rules to get some tax deductions?

As a business owner, you would surely like to retain the maximum of your money to carry your income in the next financial year. In this, your accountant can help you by advising you to get some of the standard deductions applicable to your business firm like:

  • Home-office deduction: In this kind of deduction, you can benefit from a home-office deduction if you operate your business through your home. to qualify for such removal, you must have a particular place in your home that is constantly being used for office work.
  • Internet and cell phone deductions: If you use the internet and a cellphone for business purposes, then you can get a deduction on it. But yes, if you use a cellphone and internet for both business and personal use, then you are applicable for deduction for a portion of the bill.
  • Traveling expenses: If your business gets you on for traveling, you can get all the bills for traveling to claim a deduction on your traveling expenses.
  • Vehicle expenditure: If you use your car or any other transporting means, you can use it as a deduction by addressing it as a business vehicle. IRS has given some methods to work with your accountant and check, giving you the maximum amount of deductions.
  • Meals deduction: Generally, businesses get 50% deductions on their meals, but this year due to the wave given by the Coronavirus pandemic, you can claim 100% deductions on your bills.

Are you eligible for Business Income deductions?

This year TCJA brought many amendments to its taxation policies. This year, one of its significant policies is the Qualified Income Business Deduction (QBI). This act allows sole proprietors, partnership firms, corporations, and many other business institutions to receive an extra deduction on their taxable income. For further information like the amount deducted from your income, you can ask your Tax Attorney.

What other things can I do to reduce my tax and improve my tax return?

This is probably the most critical question you can ask your Tax Attorney to improve your tax and tax return. You can consult your attorney and ask for any further option left out with you to reduce taxes. One of the most common ways you can minimize tax recommended to almost everyone by tax attorneys is to contribute money to an individual retirement account (IRA) or Simplified Employee Pension (SEP). They can recommend the amount you can keep in your retirement account according to your business income and age because it limits your contributions towards this account.

How is your firm going to keep me informed about my taxation status?

This is one of the most crucial questions that must be asked to a Tax Attorney because they are often notorious for communicating with their clients. You must make sure that you pick a person who has a clear policy of informing their clients every month and can revert to you in not more than 24 hours when you call or e-mail them.

Bottom Line

Avoiding Bad Tax Liability is very difficult, but by asking the above questions, you can evaluate whether the person runs an honest business and save a significant amount of money you earned by working so hard daily.