How Can A Tax Attorney Help You?

A tax lawyer helps you in your hour of need. He is different from accountants. Tax lawyer, not just wrangles with numbers, he fights the law. Accountants can't handle all the things associated with tax planning, that's where tax lawyers have to step in. A tax lawyer can handle your problematic events and help plan the best course in the future.

When Do You Need a Tax Attorney?

Tax lawyers must have a Juris Doctor degree, usually referred to as a "J.D." Tax attorneys must be admitted to the state bar to practice. However, these are just the minimum requirements. Tax lawyers should have advanced training in tax law.

There are tax attorneys having backgrounds in accounting. However, they don't all involve in preparing tax returns. They are focused on the legal implications of tax situations. You can hire a certified public accountant (CPA) or enrolled agent (EA) if you are going through complex accounting problems in addition to legal problems.

Let's see how an attorney can help you with various matters:

If You Have a Taxable Estate

Estates are also required to file returns as well. If the total value of your estate at the time of your death exceeds $11.58 million, or $23.16 million if you're married, then your estate is taxable. It's a lot of value, and most people don't have to worry about it, but your heirs are required to pay up to 40 percent of the balance over the threshold. An attorney will devise estate planning plans to guide you to stay below the exemption threshold so that you don't have to pay a major portion as tax.

If You're Starting a Business

A tax lawyer can guide you in what kind of business entity you should set up. He will tell you if you can function as a sole proprietor, and can you incorporate. Any kind of business setup you prefer will have tax ramifications. The tax attorney can advise you about the structure as well as the tax treatment of your company. He can also guide you in some non-tax issues that we usually don't consider.

Also, if you wish to engage in international business, you'll have to consider various contracts, tax treatment, and numerous legal matters. In these types of situations, a law attorney can help you and guide you so that you won't land in trouble.

Buying or Selling a Business: Matters like capital gains and depreciation to decrease the tax liabilities can be taken care of by law attorney.

Owning a Business Overseas: Every business want to make profit. A tax lawyer can give knowledge to clients about any exemptions so that they don't need to pay any unnecessary taxes.

Leaving Property or Money to Heirs: Estate planning is complex, and it is sub-specialty of tax law.

If You Have Legal Issues

Are you under criminal investigation by the IRS, or are you planning to bring a lawsuit against the IRS? Or, if you wish to inquire about an independent review of your case before the U.S. Tax Court, a knowledgeable and experienced tax lawyer can help you. Someone who is familiar with a courtroom can help you in these aspects. Certain non-attorneys can also represent clients in court. However, it's always better to be represented by an experienced lawyer who can guide you in the right direction.

Questions to Ask a Tax Lawyer

Here are a few questions one should ask when you initially meet with a prospective attorney:

• Are they admitted to the state bar?

• What are the charges?

• Their area of specialization of tax law

• How he can help in tax planning