It is absolutely necessary to choose the right tax attorney if you are burdened with tax issues such as being audited, having IRS tax debt, being accused of investment fraud or other IRS-related concerns. If you ignoring the tax problem will only make it worse it is best to get a tax lawyer. If you wait too late you could be subject to tax penalties that include fines, interest, liens, garnishment and other penalties up to imprisonment. With so much at stake when dealing with tax legal issues you should find an attorney who specializes in tax law.

If you have decided to use the services of a tax lawyer, you need to know how to find a good tax attorney.

Attorneys may be a general practitioner or a specialist. You need an attorney that specializes in tax law. Also, a good reputation and track record with former clients are important. The tax attorney should be in good standing with the IRS and any bar association.

Another consideration must be the attorney’s fee. Now, be aware that legal representation may not be cheap. However, with you attempting to remedy the tax situation yourself, the cost to you could be multiple. First, consider the cost. The actual attorney fee will vary depending on location, the nature and complexity of the case, the particular lawyer involved and the tax attorney’s hourly rate. So before you jump and choose a tax attorney that seems ideal, to prevent delay and disappointment, make sure that you can afford the representation.

Contact a few tax attorneys and ask about their fee schedule, find a payment arrangement that fits your situation. Most reputable tax attorneys will require a down payment for work performed, this is known in the industry as a “retainer”. The retainer amount will vary. Part of the retainer will be refunded if the total amount is not used.

Here are some common fee structures:

I. Fixed or Flat Rate: This is an arrangement were specific legal services are covered by set fees.

II. Hourly Rate: Very common. Fees will be assessed based on the time the tax attorney spends on your legal issues.

III. Contingency Fee: Is a fixed percentage of the amount of recovery the tax lawyer is able to secure, which will serve as the attorney’s fee. However, there are other expenses such as court costs, filing fees, copies, phone charges and more that will be your responsibility.

A successful tax lawyer with a proven track record will likely have a background in tax law, either as a course of study or in service in the IRS. They will also probably have financial experience in some other field such as a Certified Public Accountant. If you have a tax issue involving the IRS, make sure that you choose a tax attorney that is licensed to represent clients before the IRS.

In choosing the right tax attorney you want to know if the tax attorney will handle your case personally or refer it out. How many cases has the tax lawyer or firm handled. What is the ratio of cases that went to trial to those that were settled and the outcomes of those cases.

You must share personal, sensitive and confidential information, make sure you choose someone you are comfortable with. Ultimately, it is essential to choose a tax attorney that you can trust to represent your interest and bring relief to your tax issues.

While many business owners recognize the importance of having a secretary and an accountant at their disposal, few realize the equally significant need of having a personal tax attorney.

A tax attorney is an attorney with specialized skills or expertise in taxation laws. Although he can also represent clients regarding other aspects of the law, a tax attorney will be especially helpful when it comes to resolving tax problems and issues. A tax attorney generally has advanced training and education in taxation law to distinguish him from other lawyers.

There are basically two ways for tax attorneys to provide aid to you or your business:

Tax Planning – Tax attorneys are like financial managers in the sense that they manage your financial affairs to ensure that you will not encounter any tax difficulties in the future. Tax attorneys will guide you in every step and steer you to the right path when your finances are beginning to wave a red flag at the IRS.

Tax Controversy – Tax attorneys can also defend your rights when you’re already embroiled in a tax controversy. If you’re already having difficulties with your taxes, a tax attorney will help you out by straightening your affairs and clearing your name. A tax attorney will be able to reduce penalties, remove liens if possible, and negotiate whatever needs negotiating with the government.

When Should You Hire a Tax Attorney?
The answer to this question depends entirely onto you. You can head off potential troubles for you and your business by paying a monthly retainer to your tax attorney. As such, he’ll be able to act in an advisory capability and warn you when you’re about to do something wrong. He can also coordinate with your accountant regularly to ensure that you will have no tax trouble in the future.

Of course, you can always opt to hire a tax attorney only and only when you are already experiencing tax difficulties and you feel helpless in the negotiation table with the IRS. While the first option is the most ideal, this second option is still better than not hiring a tax attorney at all. Only few civilians or business owners have the necessary skills and attitude to deal effectively with the IRS.

How Much Will a Tax Attorney Cost?
If you wish to employ a tax attorney by paying him a monthly retainer, the fee will range from several hundred to more than a thousand dollars every month, depending on the duties and responsibilities you wish for the attorney to take care of and the law firm you’re transacting with.

If you wish to consult with a tax attorney only when there’s a need, you may be charged by an hourly rate. Again, the rate will depend on the law firm you’re transacting with and the problem at hand.

If you are hiring a tax attorney to handle your tax case, you may not need to pay any of his fees at all if you win your case. The IRS will be responsible for it instead. Your tax attorney may also opt to have a percentage of your tax savings.

Tax attorneys are legal professionals who advise people in terms of tax planning and represent clients in cases of tax disputes or problems with the government. A tax attorney’s job involves much more than just representing a party in case of civil or criminal lawsuits related to taxation. It also involves advising people beforehand on the legal intricacies of tax laws, and how to minimize their tax liabilities in a legal manner.

In tax planning, it is important to consult an experienced tax attorney so he can advise the best legal means available to minimize taxes, get exemptions or rebates, and the best arrangement for filing returns. The federal and state tax laws are intricate and sometimes the laws differ from state to state. There are many tax exemptions available for certain groups like senior citizens, who may not be aware of those exemptions.

However, trying to minimize or avoid paying taxes using legal loopholes without first consulting an attorney is risky and can land one in trouble with the government and Internal Revenue Service.

Tax attorneys also represent a person or organization under investigation for tax evasion/fraud. This involves negotiating with the IRS on behalf of the client, fighting for the client in case criminal proceedings are initiated as well as working on reduction of penalties if client is found guilty. A skilled tax lawyer can reach an out of court settlement for the tax defaulter and minimize penalties if he or she is convicted.

Consulting a tax attorney is a better option than consulting a tax advisor or accountant because as a lawyer, a tax attorney cannot be forced to appear as a witness against his client. So all communication between the attorney and his client is confidential, which is not the case if a tax advisor is made to testify against a person charged with tax crimes.

Selecting the right attorney, with expertise in the area required is very important. Apart from experience, he or she should have excellent references and be a member of the bar association. A good tax attorney is an asset which can save you from much trouble later.