You might not have a proper understanding of the tax-related issues that might arise while filing your taxes.
In such situations, a tax lawyer comes in need to guide you in issues related to tax laws.
In this article, we will be discussing tax lawyers and when you need one in the US.
Who Is A Tax Lawyer?
Tax lawyers, also known as tax attorneys, are finance professionals who specialize in policies related to tax liability.
This tax liability is associated with income, business transactions, and intellectual and physical property acquisitions.
Tax lawyers are known to work within law firms that aim to provide their clients with tax services when hired.
Some tax lawyers are also known to operate as consultants, and some tend to work in the field of litigation. Tax lawyers working in litigation are known to represent their clients in court for trials related to taxation issues.
Tax lawyers are known to have highly intricate knowledge of laws governing taxation, which allows them to assist their clients in any tax-related issues. Additionally, they also guide their clients to comply with tax laws.
Moreover, tax lawyers are also known to take training regarding issues related to the ‘Internal Revenue Service (IRS).’ This allows tax attorneys to assist clients effectively in IRS settlements.
Tax lawyers also represent their clients over appeals raised in the US Tax Court or even the US Supreme Court.
What Is A Tax Lawyer Do?
Tax lawyers are known for their ability to assist their clients regarding tax codes of the US effectively.
They are also responsible for effectively making their clients understand the local, state, and federal tax codes.
Moreover, tax lawyers are known for their ability to effectively have updates on the latest tax regulations and issues to increase their efficiency.
Here are the common responsibilities that are performed by tax lawyers:
Legal Research
Tax lawyers are known to perform extensive legal research to understand tax policies and laws.
Tax laws change very often, so tax lawyers must have effective knowledge of tax codes.
Drafting Documents
Tax lawyers, like any other lawyers, are known to draft a lot of documents for legal purposes.
Tax lawyers tend to draft documents related to estate planning, employment, tax forms, and court briefs.
Tax lawyers are known to handle tax disputes for their clients related to tax obligations.
Additionally, tax lawyers also perform negotiations with the IRS on behalf of their clients.
Representation Of Clients In Court
A tax lawyer, especially one with experience in litigation, has the authority to represent their client in the courtroom.
This is applicable if the tax issue is required to be resolved by the court.
Tax lawyers are known for their ability to effectively guide their clients regarding tax-related laws associated with their incomes, transactions, and retirement, among the few.
Are You In Need Of A US Tax Lawyer?
Your need for a tax lawyer in the US depends on the tax issue that you have faced while residing in the nation.
You can either need a tax lawyer in the US if you own a business in the region or just a citizen.
Here are some reasons behind your need of a US tax lawyer:
- If you are willing to plan your estate, then a tax lawyer comes in need. The tax lawyer will effectively plan your estate, like setting up trusts, transferring assets to family members, and reducing the estate tax, among a few.
- You might also need a tax lawyer when starting out a new business venture. They will guide you in knowing the tax codes required for managing your business operations.
- You will need a tax attorney if faced with a tax dispute. The tax lawyer will assist you effectively by complying with tax codes for resolving your tax dispute with local authorities or the IRS.
- You can also need a tax lawyer for tax relief. If you tend to have an outstanding balance with the IRS or any other tax authority, then you might need a tax lawyer to negotiate. The tax attorney might aid you in pursuing the following options for tax relief:
- Installment plans to pay tax over time.
- Innocent spouse relief.
- Offer in compromise.
Cost Of Hiring A Tax Lawyer
The cost of hiring a tax lawyer in the United States varies due to various factors.
The first factor that determines the cost of a tax lawyer is their experience in the field. On the other hand, their cost also determines due to the location they are practicing in.
The hourly costs of a tax lawyer in the United States vary from $200 to $550 per hour. The hourly cost of an experienced tax attorney will be obviously more compared to others.
Moreover, whether your tax attorney charges you by the hour or acquires a flat fee, you can expect the average cost of individual tax resolution to cost around $3,500 to $4,500 on average.
Final Thoughts!
Now you have a fair idea of the role and duties of a tax lawyer, along with the factors that might require you to appoint a tax lawyer.
Now you are aware of the cost of hiring a tax lawyer for your legal woes. By having an idea of the average fees of a lawyer, you can effectively hire an experienced lawyer with no hidden charges.
So, it is advised that you consult with good and experienced tax lawyers to effectively comply with your regional tax codes
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