What is a tax attorney? Tax law is a field of law in which governmental or public bodies, including state, federal and local governments use a complex body of rules and processes to evaluate and collect taxes from individuals in a legal context. Tax law involves many different areas, including taxation, collections and compliance, and international trade. Tax laws can be used at the federal level to levy taxes, institute auctions to raise capital for a country, or change the distribution of tax revenues. Federal tax law allows tax payers to have more control over their taxes by empowering the government to change tax rates without prior notice.
There are many professional tax accountants and attorneys who can provide advice on how to structure their businesses to take advantage of tax deductions, credits, and reliefs available to them. The United States government is now allowing the self-employed, or small business owners to deduct a portion of their wages and salaries from their income taxes. In general, tax experts can be found in large law firms, and many new business owners will initially hire a tax accountant to handle their tax matters. Certified tax accountants also provide advice to those who might not have a comprehensive understanding of tax law.
Tax attorneys can also help individuals and businesses that owe back taxes, negotiate with the IRS, draft contracts, settle IRS claims, draft a tax return, or represent individuals or families who have been subjected to hate crimes, civil rights abuses, or retaliation against them because of their status as taxpayers. In the current economic climate, many attorneys are working with debtors and IRS collections agencies in dealing with wage garnishments, tax liens, bank accounts, properties, and the like. Many tax attorneys also work as lawyers in major corporations.
Tax attorneys can also be used in cases involving financial records or estate assets. Financial records expert analyzes financial records, such as bank statements, tax records, mortgages, and other types of records to determine what tax liability may be created by an owner or manager of a business. These professionals can spot inconsistencies or errors in business records, or in the Social Security numbers or tax identification numbers on financial statements. They can review financial records for accuracy. A tax liability can be determined by these professionals if they detect an error on the part of the business owner or manager, or a potential infraction on the part of a worker’s tax record.
Tax attorneys can be hired to defend or negotiate with IRS auditors. Auditors are often looking for an opportunity to gain entry into a business’s internal records, which could reveal financial misdeeds. If tax attorneys can show that an audit is unjustified based on lack of evidence or suspicion, the audit can be thrown out. The tax attorney may also be helpful in negotiating back taxes with IRS collections agencies or in dealing with financial penalties for illegal payroll deductions.
A tax attorney-cap can also help individuals or businesses obtain the right tax settlements on back taxes from the IRS. These professionals have a high level of knowledge about the tax codes and laws surrounding these issues. Many individuals or small businesses find it difficult to deal with the IRS, as the agency has a long history of harassment and intimidation. A tax attorney can represent the client in negotiations with the agency, and can help to draft IRS agreements or settlements. Tax attorneys may also work to draft trust deeds or real property purchase agreements, which are used in connection with taxes.