When Do I Need to Hire a Tax Attorney?

Tax attorneys help business owners to deal with complicated tax codes and legal systems. They devise strategies and suggest operational techniques that help reduce taxes and make room for credits and tax exemption. They also represent the companies in court in cases of tax disputes. These attorneys can be hired individually and some businesses provide this service on a professional level, having their teams of qualified individuals.

They also represent clients in tax disputes. Tax lawyers in private practice assist both individuals and businesses.


Tax Attorneys


Tax attorneys play a pivotal role in all businesses since a bad decision regarding tax may end up in major financial losses for the company. It may affect the company’s assets and cause business problems in the future too. The solution to all these problems is to seek the advice of a tax lawyer. A tax attorney is of great assistance when it comes to issues which Internal Revenue Service, a very common tax dispute most businesses face. Any ordinary tax agency might struggle with the legal system, but a tax attorney is as well acquainted with the law as he or she is with the tax codes.

The legal system of the country is continuously getting modified and a tax attorney knows the laws the best. Hence consulting a tax attorney before making any financial decision with regards to tax, is always advised. By law, tax attorneys are bound to maintain confidentiality and they must take care of the business and operate keeping the best interests of the business in mind. Hence the owner can be sure that a tax attorney is an ideal person to trust with matters related to taxes to be paid by the company.

Duties of a Tax Attorney


The first and foremost duty of a tax attorney is to protect the company against criminal tax charges. This is crucial for the company because if the company faces criminal tax charges, the company will be ruined. In this case, the accountants won’t be able to save the company and even be required to testify against the company, to protect themselves. Only a tax attorney can come to the aid of the company in this case.

Tax attorneys are well versed in tax laws and very much familiar with the policies of both the federal and state government. Hence, they are more likely to come up with more feasible solutions and provide a wider range of options for the company to save on taxes rather than a regular agent working for any tax agency.

By law, tax lawyers are bound to make deals they can keep and hence the owner will have a clear idea of the tax scenario and how the tax attorney is going to help in that situation. No tax dispute can’t be resolved by a tax attorney. As per statistics and records, tax lawyers are well trained to handle all tax-related issues that a company may face. Employing a tax attorney also ensures that in case of a major dispute with the authorities, the company may move the issue to court without any major hassle.

Tax attorneys have special skills that are extremely important in dealing with tax-related matters of the company. The prime skill that is essential to a business is legal research and analysis. The tax attorneys can go beyond textbooks and decipher the legal tax codes inside out. This gives a deep insight into the tax laws and opens up more scope for tax deductions. They are also well acquainted with rules and regulations of the governing bodies such as the IRS and are well versed with the sources of the laws. The IRs may, in many cases, neglect a legal textbook but it is bound to follow statutes and case law. A tax attorney specializes in these sets of laws and is the only person who can determine which tax law best suits the business and will ensure minimum tax bill and maximum profit for the business. Tax attorneys are so well versed with the laws and tax codes that as per records, they have been successfully representing their client companies against tax bureaucracy, many times in situations that had high risks associated with it. Tax lawyers are trained to present their cases in court, and this allows the company to have an extremely able and professional representative in court.


Tax Lawyer


A tax lawyer is extremely necessary for a few scenarios. In case the company is facing an audit, it is essential to have a tax lawyer. The audit begins with an array of extensive questions. These questions must be answered very carefully to have a good audit session ahead. Here the tax attorney plays the major role of protecting the rights of the company and making sure that the company owner doesn’t face harassment from the authorities.

Many companies get involved in cases of tax fraud due to errors committed by the owner or the tax professionals. In this case, a tax attorney may take the case up to court represent the company, and save it from incurring further losses.

A tax lawyer makes sure the company can settle its due with the lowest possible losses. In most cases, an offer in compromise (OIC) is signed which gives the company a fair deal.

Tax attorneys also help deal with tax debts and often negotiate with the IRS on the behalf of the company. These negotiations are tough, and one will need the help of a skilled professional. Often tax debts arise due to errors in outdated systems or due to human errors. In such cases consulting a tax, the lawyer is the only solution else the company might have to pay huge amounts as tax debts.

While regular lawyers are not able to decode the tax system fluently, tax professionals are not accustomed to dealing with the law. The tax attorneys who successfully handle both the tax system as well as the legal system bridge this gap.