Signs of advanced education or specialization. In most states, you must also graduate from law school to get a law license. Some tax lawyers have a master's degree in taxes (called LL, M). Some tax lawyers also have CPA licenses, meaning that they are also certified public accountants.
When choosing a tax lawyer, look for someone who has experience with your particular tax problem, as well as with the resolution method you want. If you have state and federal tax problems, make sure the tax lawyer has experience with your state's tax agencies. After choosing the right tax lawyer for the job, you can be sure that your tax problem will be resolved soon. To become an entry-level tax law specialist, applicants must have a four-year degree and experience in legal or tax accounting.
To find a professional and competent tax lawyer, you can request a referral from your return preparer, friends and family, who may know a trustworthy tax lawyer. Tax planning lawyers help companies and high-net-worth individuals organize their financial affairs in a way that minimizes their tax burdens and helps them avoid a tax audit. To decide if it's worth hiring a tax lawyer, you can compare the amount you can save on back taxes with the lawyer's fees. Because they have knowledge and experience in tax laws, IRS rules and the tax code, they can negotiate with the IRS, maintain in-person and remote communications with the IRS, and represent a person or company in tax court.
While lawyers who work in accounting or consulting firms may work more with tax laws, those at law firms can also appear in tax courts to represent clients. A tax lawyer is generally hired for complex tax matters, while a CPA is hired for the preparation of financial records and tax returns. For example, fraudulent tax resolution companies advertise Offer in Compromise from the IRS as a “cents on the dollar” program in which anyone can get a substantial reduction in tax debt, even to zero. A tax lawyer can help you design estate planning strategies and manage the paperwork that involves minimizing estate taxes, transferring assets to family members, establishing trusts, and other tactics.
You may also have the option of working with a tax lawyer in the event of a contingency, whereby the lawyer receives a percentage of your financial reward. When deciding between a tax lawyer and a CPA, you should also consider the pros and cons of tax lawyers. Because tax lawyers are qualified and trained, they can resolve complicated tax issues, such as tax evasion, tax evasion, challenging the IRS before a tax court, the suspension of a tax lien, and complicated cases of back taxes. A specialized tax lawyer can help individual taxpayers and organizations resolve the most complicated tax issues.
Ultimately, both professionals can handle complex tax matters, but in the rare event that a case goes to court, only a tax lawyer or a professional from the United States Tax Courts (USTCP) can represent you before the IRS. Since you'll be working closely with your tax lawyer, it's important that you have a positive attitude and that you can trust him with the details of your tax and financial matters.