A tax lawyer is also known as a tax lawyer, or tax accountant, having experience in the complex and often-changing world of federal and state taxes. Tax attorneys perform in-depth investigations and conduct interviews, review financial records, and communicate with their clients on behalf of the client. Tax attorneys are considered “in-law” lawyers because they specialize in a specific area of taxation. Federal tax law is extremely complex, so the services of tax attorneys are often sought after when pursuing tax issues. Tax attorneys must understand every facet of taxation law in order to properly represent their clients and advise them on applicable tax legislation.
The vast majority of people are not aware that they need to hire tax lawyers and not just ordinary accountants to help with their taxes. Most people do not understand the process by which their IRS agent will inform them that they owe the IRS money, the due date for filing tax returns, what deductions they can make, etc. Tax attorneys can greatly ease the burdens of their clients by providing sound tax advice, drafting a tax return, defending their clients against criminal prosecution, and other issues pertinent to tax planning and compliance with the IRS. They are very important in helping their clients navigate the ever-complicated maze that is the IRS.
The IRS can issue federal tax liens, which serve as legal notice that the government claims ownership of a property or asset. When tax lawyers collect the IRS’s money, they become responsible for collecting the tax liability owed. A tax liability arises when the taxpayer fails to pay taxes, which can result in criminal prosecution. The goal of an experienced tax lawyer is to prevent the loss of income or assets, as well as preserving the assets owned by the client.
An experienced tax attorney might need to be involved in proceedings with the IRS to recover unpaid taxes. If the IRS insists on pursuing collection efforts through the court system, a good tax lawyer might be needed to represent his/her client in such matters. Such proceedings might include demands from the IRS for repayment of past debts or penalties for past tax neglect.
Graduates with a law degree are often well-equipped to pursue a career in tax law. However, there are also several nontraditional routes to tax law practice, including working for a tax firm or in the private sector representing clients with tax law problems. There are many states, territories, and agencies that require tax attorneys to be licensed.
The future of employment for tax lawyers is not promising. Currently, the job outlook for taxation professionals is not positive. Many analysts believe that the long-term outlook for employment in this area is “fairly bleak.” The recent economic uncertainty has had a significant negative impact on tax revenue.
In general, most state tax offices are having a difficult time collecting the amounts owed to them by taxpayers. Years of budget cuts and dramatic increases in taxes for most individuals and businesses have rendered tax lawyers extremely disappointed in their job outlook for the foreseeable future. With that said, the tax lien attorney will need to make some significant improvements in his/her business plan in order to retain the positions he/she has. In most state courts, tax attorneys are not retained based on current revenues but rather based on future projections of revenues.
Tax lawyers must then get back to work educating themselves about the new tax laws that will be affecting their clients going forward. It is extremely important for tax lawyers to be proficient in all aspects of taxation law, as they will be dealing with cases that deal with both federal and state taxes. In addition, they will need to familiarize themselves with the new tax legislation that will be affecting businesses and individuals going forward. Taxation professionals should strive to maintain a high standard of client care. If a tax lawyer fails to do so, it may be time to find a new tax lawyer.