Tax attorneys must complete extensive legal education prior to being able to practice law. Most earn a master s degree in a related field such as business or accounting and then complete law school. Tax attorneys may also complete special certifications based on the state they live in at the time of getting licensed. Some states require a lawyer to be a member of the American Bar Association that requires completion of an approved bar exam as well as a specific number of hours of continuing education each year.
A Tax Attorney is specialized in defending clients who are charged with serious criminal or civil charges that arise from personal neglect or willful misconduct related to making a mistake on their tax return. For example, if a person forgets to report an income or pay a tax bill, this will be punished by fine or even jail time. However, there may be a situation where the tax debt was not accrued legally and therefore the person may not be liable for penalties or interest. In these situations, the best course of action is to seek a tax lawyer’s expertise in trying to resolve the matter in such a manner that the client does not lose future income or incur further debt for the original mistake. Some common situations in which a Tax Attorney can be beneficial include:
When taxpayers make mistakes on their taxes which cause them to be assessed additional taxes or interest, they may attempt to negotiate with the Internal Revenue Service to resolve the issue outside of the court system. Sometimes this results in a compromise agreement between the two parties. Unfortunately, this often means that the taxpayers lose future income or have their wages garnished. Tax attorneys understand that this happens in situations like this and they are usually capable of getting the taxpayers a fair compromise in which they pay a reduced amount or compromise their future wages in exchange for the waiver of their criminal or civil liability. The Tax Attorney can also make sure that the taxpayers receive the maximum amount of tax liability forgiven for their criminal or civil liabilities.
If the IRS audits you, the most effective course of action is to seek immediate tax relief. In some cases, the audit itself can result in a compromise agreement. Tax attorneys can advise their clients on how to approach the audit and on what tax returns are necessary to get tax relief. In many situations, the tax attorney may even work out a deal with the IRS to settle the audit in order to avoid fines or potential jail time. It is important for taxpayers to understand the importance of hiring a tax relief attorney as soon as possible when an audit is pending.
Tax attorneys can also be helpful in situations where the taxpayer fails to resolve an audit properly. In many circumstances, taxpayers will attempt to resolve matters informally with the IRS. Unfortunately, it often results in the IRS coming after the taxpayer for fines or penalties. A Tax Attorney understands that the IRS cannot simply open a new investigation if the parties are unable to resolve the current issues. Therefore, the professional Tax Attorney in Orlando will take all necessary steps to ensure that the audit is resolved properly.
Many taxpayers fail to hire a tax attorney when they realize that they cannot resolve an audit or related matter in an informal manner. It is very difficult to explain why you did not pay an excessive amount for a particular item, or why you failed to file your return. However, dealing with the IRS in an informal fashion does not necessarily require a Tax Attorney. If the taxpayer is able to demonstrate that there is a substantial reason why the IRS demands a compromise, then a tax lawyer may be needed. In some circumstances, the IRS will agree to resolve the issue and the taxpayer will not need to hire an attorney.