A tax attorney is a lawyer that deals specifically with taxes. Different kinds of tax attorneys specialize in different areas of tax law. Tax attorneys can be divided up into 3 basic types: 1) tax planning attorneys, 2) tax controversy attorneys, and 3) general tax attorneys, such as those that deal with bankruptcy and real estate taxes.
Tax Planning Attorneys
Tax planning attorneys help you figure out what to do when filing your taxes. They help foresee problems that might come up with your taxes, and they help you take care of them ahead of time. If you have trouble understanding something with your taxes, or are unsure of what you’re doing, a consultation with a tax planning attorney might be just what you need.
This type of tax lawyer can also help you formulate a financial strategy to help keep you out of trouble with the IRS. They don’t usually take cases to court, so if you already have a problem that will require litigation, you may want to see a tax controversy attorney instead.
Tax Controversy Attorneys
This type of tax attorney does represent clients in court cases. Tax controversy attorneys can help you when you’re already in hot water with the IRS, a tax audit for example. An audit is a review of your tax return. The IRS or state department of revenue will conduct audits. If you plan to bring suit against the IRS, are under criminal investigation by the IRS, or have committed tax fraud, you should contact a tax controversy lawyer.
Other Tax Attorneys
There are other kinds of tax attorneys that specialize in other types of tax law. Real estate tax law attorneys deal specifically with property. They ensure that their clients pay the appropriate amount of money in their property taxes. They might be called in for renegotiation purposes, but they probably won’t argue a lot of cases in court.
Bankruptcy tax lawyers address problems with the financial event of bankruptcy. Taxpayers file for bankruptcy in extreme circumstances when they can’t repay their debts. It is useful to have an attorney that is well-acquainted with bankruptcy proceedings so that everything goes smoothly if you file for bankruptcy. Bankruptcy tax law attorneys help clients cope with the tax fallout that results from a bankruptcy filing. They also make sure that financial reports in a bankruptcy filing are without error.
When you think you might have trouble with your taxes, you should err on the side of caution. Reach out to a tax attorney for help so you know you’ll have everything in order.