Tax attorneys are lawyers who specialize in the discipline of taxation. Tax law or income tax law is a field of legal study where public or unofficial authorities, including state, federal and municipal governments utilize a complicated body of laws and rules to compute and collect taxes at a legal framework. The chief concern of taxpayers is to ensure that they pay the right amount of tax according to the law. Tax laws are specified in the Internal Revenue Code, and the tax codes are periodically revised by Congress. The tax code contains numerous sections, and the Internal Revenue Code contains the majority of U.S. tax laws.
Tax attorneys are tax law specialists who can advise taxpayers on various complex tax issues such as tax resolution, the compliance of various tax laws, and the proper structuring of their estates. Tax attorneys should not be confused with an estate attorney. Estate attorneys, tax attorneys and probate attorneys are three separate professionals. Tax attorneys, however, can file tax returns and perform other tax-related functions. They must also retain the services of a Certified Public Accountant (CPA) to prepare their financial records and comply with the regulations set forth by law. Certified public accountants (CPAs) are licensed by the CPA Association of National Bankruptcy Attorneys and the United States Justice Department.
Generally, a CPA would not represent the IRS. He would file the taxpayer’s tax returns for the year in question and provide other accounting and tax related services. CPAs take a retainer fee from their clients and must report all income earned, including any bonuses and overtime pay. CPAs obtain their certification upon completion of a two-year apprenticeship program at an approved college and passing a rigorous CPA exam. Retained clients retain exclusive rights to quote the fees for their services from a CPA. An important function of tax attorneys is to review financial records and assist their clients in complying with complex tax issues.
Tax attorneys would not represent clients in criminal matters such as DUI or tax evasion. Their main focus is preparing cases before the audit. They will conduct interviews with taxpayers and determine if there is cause for concern, will interview witnesses, conduct discovery, draft responses to discovery, and prepare closing arguments in cases involving criminal investigations.
Tax attorneys work on a contingency basis, collecting no fees unless they win the case. In most cases, tax lawyers work on a contingency fee basis, receiving their fees only if they win the case. Attorneys receive contingency fees only if they successfully represent their client. This means that in most cases, if they do not win the case, they will not receive any money. In exchange, they usually agree to work on retainer for a pre-determined amount of time.
Tax attorneys are in high demand because tax preparation has become a very lucrative industry. This industry is projected to experience growth over the next few years. As more people prepare their taxes, it becomes more important for people to have a tax expert on their side. To learn more about hiring tax attorneys, you can contact a business professional who specializes in tax preparation.