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What to Know Before Hiring a Tax Attorney

If you are being audited, have tax debt to the IRS, have been accused of fraud, or any other tax related concern, it is imperative that you hire a good Tax Attorney. Ignoring these types of issues will not make them go away. If you wait too long, you can be subjected to fines and levies on top of the already strict penalties that the IRS imposes. Because your very freedom can be at stake, it is best to consult with a qualified tax attorney at the very first sign of problems. When you decide that it is best to hire him or her, you need to know how to find the best one first.

Attorneys can be general practice or specialists. You will need a specialist; preferably, one that specializes in the laws governing taxation. You will want to examine his or her reputation and his or her track record with former clients. Most importantly, your tax attorney must be in good rapport with the IRS and with your state’s bar association.

Another huge issue that you will need to examine is how much the tax attorney charges for his or her services, noting that these types of services are not inexpensive. At the same time, if you attempt to remedy the situation by yourself, the costs could be much higher. The actual charges imposed by your tax attorney will vary depending on certain factors, such as the state in which you live, the exact nature of your tax issues, the lawyer that is handling your case, and his or her hourly rate. So, before choosing your tax attorney, be sure that you can afford his or her representation.

Put together a list of possible tax attorneys that you want to contact. Ask them about their fee schedules. Some charge a contingency fee, meaning that you only pay if you win your case, while others will charge on an hourly basis. You may also have to pay a retainer fee, which is an amount the attorney requires to take on your case. If the entire amount is not used, you would receive a refund at the end of your litigation.

Successful tax attorneys that have a proven record trying cases such as yours will have a good background in tax litigation. He or she will have either worked with the IRS before or will have graduated college with a focus on tax law. Some even have experience in other financial arenas, such as accounting. It is important to note that any tax attorney you choose should be licensed by the IRS to handle cases such as yours.

Also, be sure that the attorney you choose is actually the attorney that is going to handle your case. You do not want a tax attorney that is going to farm your case out to another lawyer without your knowledge.

Finally, you are going to have to share pertinent private information with your tax attorney, so it is best that you choose one that you feel comfortable sharing that information with.