What is a Tax Attorney?

Simply put, a tax attorney is someone who specializes in tax matters and in finding legal ways to solve issues related to taxes.

Tax attorneys will often work on all tax issues, and then specialize in a subset of tax work.

For example, we handle just about every type of tax matter or issue there is–from tax planning to tax litigation. We are also known for our research tax credit audit defense and work with self-directed IRAs.

There are other tax attorneys who focus on niche areas, such as FBAR compliance, IC-DISC transactions, 1031 exchanges, etc.

You can also define the tax attorney by their education and licensing. At a minimum, a tax attorney should have a Juris Doctor degree and pass the state bar examination. Ideally, they should also have advanced tax law degree and training in dealing with tax-related matters. The training usually comes from working directly for the IRS or state tax authorities or courts.

How Tax Attorneys Help

The average American taxpayer spent about 13 hours to file their tax returns.  And even after following the instructions, many taxpayers are not sure that they did everything right.  Most taxpayers could save a bundle in taxes with a little tax planning. A tax attorney can help with this.

More than 20 percent of Americans either fail to file their tax returns or fail to pay the tax reported on their tax returns.  The IRS has an entire collection function dedicated to these taxpayers.  A tax attorney can help with this.

Business taxpayers have to spend more time on their taxes.  Some of the largest corporate taxpayers employ more than 100 full time employees in their tax departments to continuously work on their tax returns.  This is justified as bigger issues may arise from errors or mistakes and there are more significant tax savings from tax planning too. Tax attorneys can help with this. 

Deep Knowledge of the Tax Law

Tax attorneys are you the go-to person when you struggle with any issue related to taxes. 

Your tax attorney can assist with resolving issues related to problem tax returns. At the same time, consulting a tax attorney before you file a return helps you strategize better for the future.

Tax attorneys are familiar with interpreting the law. They know the best way to handle transactions to minimize tax assessments and liabilities and penalties on your part.

Better Navigation of Tax Changes

Aside from mastery of the law, your tax attorney also keeps abreast of developments and possible changes in the tax law. The Tax Cuts and Jobs Act which took effect in 2018, is an example.  Congress rushed the legislation through so fast that many provisions were not well thought through.  This created gray areas, loopholes, and opportunities. In scenarios like this, a tax attorney could be a valuable resource.

A tax attorney has up-to-date knowledge of new rulings and administrative guidance. With their assistance, it’s easier to comply with new requirements and change your tax strategy as necessary. Their expertise, experience, and network allows them to provide better solutions to help you avoid taxes, penalties, and interest and reduce your future tax obligations.

Reliable Representation

A tax attorney could serve as your legal representative and deal with the IRS on your behalf. 

When you are at a point where you need to communicate with an IRS agent, it’s always better to consult someone who knows the law inside out. An attorney specializing in the tax law could provide valuable advice on how to solve the problem and what you can do to minimize damage on your part.

But tax attorneys are not only there to resolve issues from past problems. 

Since they have excellent foresight when it comes to tax matters, a tax attorney can help you plan the future better. These professionals can help you minimize taxes for your business, your income, and your estate.

Find Better Solutions to Your Tax Woes

If you want someone to oversee the resolution of the entire process, find a tax attorney who also prepares tax returns or has an accounting background.

Some tax attorneys help clients prepare and file taxes, but their main role is to help you handle the legal implication of your tax issues. All tax attorneys have financial knowledge but not all of them have an accounting background. These attorneys could assist with both the accounting and legal issues and provide advice on how to handle your transactions in a more comprehensive manner.

There are times when you can and should hire a tax attorney for a specific task. For example, if you have a very specific need, such as the need to litigate a case in tax court, find a tax court litigator.

Consulting a tax attorney helps you avoid the frustration and the hassle in dealing with a possible or existing tax issue. So, it’s crucial to find someone reliable and competent to handle complex problems with the IRS.

Get Help With Your Tax Matter

We are experienced tax attorneys in Houston, Texas. We help clients with just about every type of tax question, case and matter.

If you have a tax question or need help with your taxes, give us a call or schedule an appointment with our tax attorneys today.