When do you Need a Tax Attorney?

A tax attorney can work in three basic capacities. First, a tax attorney can work on the prosecution side, bringing charges and prosecuting a defendant who is accused of tax fraud by the Internal Revenue Service. Secondly, a tax attorney can work on the defense, representing clients who are being investigated or who have been charged. Finally, a tax attorney can work as a financial consultant in multiple industries to gauge risk and ensure compliance to existing tax laws. A tax attorney must have an exact knowledge of current tax laws on the federal as well as state levels, and remain current each year with any changes.

A tax attorney must also be detail oriented and have a strong financial background as well as a talent for negotiation and analysis. In order to be a specialist in this field, a tax attorney has to apply to the Board of Legal Specialization in whatever state in which they reside. They will need to show a significant portion of the practice is working in tax as well as show a significant success rate indicating a competence in the field. There are various other requirements that vary between each state but most include some type of exam as well as continuing education.

Government departments will hire a tax attorney to assist in organizing and auditing cases in order to prepare a case for litigation. They will also expect trial experience in the person actually prosecuting the case but there will be peripheral attorneys doing a lot of research and preparing briefs. A company should seek a consultation with a qualified tax attorney at least periodically to audit their books and ensure compliance so as to avoid any tax problems down the road. Even the smallest of companies can benefit from the counsel of a qualified tax attorney. Individuals can also benefit from the advice of a tax attorney especially if they have complicated taxes or have issues that would “red flag” their return for review even if it is legitimate.

Whether a business or individual, aside from due diligence in an occasional or even regular internal audit, the time of a tax attorney is necessary is when you are being investigated. It is imperative that a tax attorney is retained at the first indication that you are being audited or investigated. This allows the tax attorney to become familiar with your issues and mount an educated defense. If charges are brought, it is never a good idea to represent oneself. Regardless of the industry a tax attorney should be used as a preventative measure occasionally. However, if there is a serious issue, the tax attorney should be retained as soon as possible.