attorney debt irs

The importance of utilizing a personal tax attorney is not recognized by most business owners, not the same way they understand the importance of employing a office manager or accountant. With training and education specific to tax law that distinguishes him or her from other lawyers, a tax attorney may represent clients in other areas of the law. However, a tax attorney's specialized skills are most useful in matters regarding the resolution of tax issues and tax debt relief.

What a Tax Attorney Can Do To Help You

Basically, the help that tax attorneys can provide you or your business fall into two categories: I. Tax Planning: A Tax Attorney's role can be that of a financial manager, in that they will manage your financial affairs to prevent you from having any future tax difficulties. They will act as a consultant to advise you on a financial path that will not cause red flags to be raised at the IRS or State Revenue office.

II. Tax Controversies: A Tax Attorney will represent your interests and defend your rights should you currently be involved in a tax controversy. Let's say you already have issues with your taxes and the IRS or State Revenue, the tax attorney can assist you by resolving on going tax problems and clear your name. Tax Attorneys may be able to get tax debt relief with the removal of liens and levies, reductions of penalties or interest if possible. They would handle all negotiations with the IRS or government on your behalf.

When To Hire A Tax Attorney:

This is a very personal choice that is entirely yours. You can prevent future tax troubles for you or your business by simply paying a Tax Attorney a monthly retainer. Then, he or she can act in the capacity of an advisor, and you can be forewarned if something you are about to do is wrong. The Tax Attorney can work closely with your accountant to make sure you will not have tax problems in the future.

Now, you obviously can wait to seek the help of a Tax Attorney only when you have already been experiencing tax difficulties, need tax debt relief and you feel like you are in over your head when you are at table negotiating with the IRS. While the first option is ideal, the second option is still better than not using a Tax Attorney at all. There are only a few individuals or business owners that have the requisite attitude and skills to deal effectively with the IRS.

What Is The Cost of a Tax Attorney?

The cost of a Tax Attorney will vary, depending on the lawyer or law firm as well as how you wish to employ them. If you choose to employ the Tax Attorney by paying a monthly retainer, expect the fee to range form a few hundred dollars to more than a thousand dollars a month, based on what responsibilities and duties you wish the attorney to be responsible for and the law firm.

You may be charged an hourly rate if you only desire to consult with a Tax Attorney when a need arises. Again, the rate depends on the law firm you employ and the complexity of your tax problem.

Contingency Fees:

A Tax Attorney representing you may choose to have a fixed percentage of your tax savings serve as the attorney fee, this is called a contingency fee. In fact, if the Tax Attorney wins the case for you, you may not be responsible to pay any fees at all, it will instead be the IRS's responsibility. Get good advice from a Tax Attorney in advance if you can, to head off future tax problems. But, by all means employ a Tax Attorney to get tax debt relief if you are already embroiled in a tax controversy with the IRS.