Tax attorneys are specialists in taxation law. They can primarily help you in resolving tax problems or issues. They have undertaken advanced education and training in taxation law, which differentiates them from other attorneys.
Tax attorneys can help you and your business in the following ways:
- tax planning – serving as your financial manager to re-arrange your financial affairs, giving due consideration of any tax issues that may arise from this process.
- tax dispute – a tax attorney can fight your position when a contentious tax matter arises. If you are having difficulty defending your position yourself, you can use a tax attorney to help strengthen your case and clear your name. A tax attorney may be able to reduce any penalties applied to your tax situation and remove any tax liens, as he will be able to talk to the government on your behalf.
When is the right time to hire a tax attorney? Well, it’s up to you. A permanent tax attorney can help you manage your business and your tax position, and guide you through the tax implications of any business transactions. He can work with your accountant to ensure you stay out of tax trouble.
Of course, you can just hire them when you have a specific need, as any particular tax matters arise. Just make sure you do consult with a tax attorney when you need one! They are really the only people who can effectively communicate with the IRS!
You can hire a tax attorney on a monthly retainer. The cost will depend on the duties and responsibilities you assign to him. This could cost you thousands of dollars a month, depending on the law firm you use. Alternatively, you could just hire him for a couple of hours per month and pay him an hourly rate.
If you win any case against the IRS, the IRS will pay your tax attorneys costs.
So the choice is yours. Hire a tax attorney just for specific tax issues or on an ongoing basis, depending on your budget, the complexity of your business and your own in-house tax knowledge. Just don’t skimp when you have a real serious tax issue. A tax attorney is really your only effective means to defend yourself in a tax law case.