Tax Attorney FAQ’s
A tax attorney typically charges anywhere from $295 per hour up to $390 per hour. However, these rates can vary depending on experience, location and other contributing factors. Tax attorneys with more experience may cost more than a fledgling tax attorney.
Tax attorneys specialize in representing taxpayers before legal authorities during audits. Although tax attorneys also provide a number of other services, you should look to a tax attorney for matters such as:
• International business tax issues
• Legal representation
• Estate planning
Although there are many tax attorneys to choose from, not every tax attorney is well equipped to handle your case. You should seek a tax attorney with experience and positive feedback. Additionally, you should ask your potential tax attorney questions such as:
• Has the tax attorney had experience in handling an issue similar to yours?
• What are your tax attorney's credentials?
• How long has the tax attorney and their firm been in practice?
Although tax attorneys and Certified Public Accountants (CPAs) are both qualified to help individuals with tax planning, financial consulting and minimizing tax penalties. However, there is one primary difference between these two types of tax professionals. A tax attorney is better suited to represent you in a tax related court case while a CPA is likely to provide more assistance in the financial planning side of your business.
There are several situations in which you should hire a tax attorney. For example, if you are being audited by the IRS you likely require a tax attorney's expertise. Tax attorneys can help you communicate with the IRS and negotiate on your behalf. Although it is not required, a tax attorney with experience can provide a great deal of relief. Listed below are a few circumstances in which it will be advantageous for you to hire a tax attorney:
• You owe the IRS over $10,000.
• You are self employed or a small business owner.
• Your financial situation is complicated or atypical.
• An Internal Revenue Officer has been assigned to your case.
In certain cases, you might have no better option than to retain a tax attorney. These circumstances include:
• You owe the IRS over $1,000,000.
• You have unreported foreign bank accounts.
• You have unreported income or other implications of tax fraud.
A tax attorney provides various services to their clients, the most common being that they will serve as your advocate before the IRS. Tax attorneys specialize in a number of services such as federal, state and municipal laws related to tax liability. Additionally, tax attorneys can provide assistance with taxation related to estates, income of any sort, business transactions and more.
A power of attorney (POA) is an authorization for someone other than yourself to act on your behalf. In this specific instance, a POA allows your chosen tax professional to negotiate with the IRS on your behalf. You should take this step-in order to allow your chosen tax professional to resolve your case as quickly as possible. To authorize the power of attorney to someone, you must fill out Form 2428: Power of Attorney and Declaration of Representative
No, your power of attorney agent is NOT responsible for your taxes. Although a power of attorney authorization allows the designated person to make financial decisions on your behalf, they are not in any way personally responsible for your finances.