This brings us to the matter of how to decide if you need a Tax Advisor or a tax lawyer. A decision can cause a considerable headache to many. Happily, some specific examples can help you determine whether you need a Tax Advisor or the servers of a fully qualified tax lawyer.
Reasons to contact a Tax Advisor
As a general rule to remember when you are making this decision is that Tax Advisor are more focused on the financial part of preparing tax returns. Therefore, it’s wise to hire a Tax Advisor if you find your business or personal tax forms confusing and complicated.
Reasons to contact a tax attorney:
However, as a tax attorney remote is far more comprehensive, they can help you with a broader range of issues.
Issues with estate inheritance
The first of these situations is if you have a high-value estate that you plan to pass on to someone else after your death. In fact, a tax lawyer can be especially helpful here. This is because they can advise you on legal tactics that will prevent your heirs from paying out a vast amount in taxes.
Sadly, such a high tax payout is often the case when dealing with inheritance. The reason for this is that estates worth over a certain amount are liable for tax of us to 40%.
Preparation of tax strategy
It’s not just Tax Advisor that are good with tax planning and preparation but tax lawyers too. For example, in a situation where you are looking to prevent tax losses on your assets, a qualified tax attorney can be the best person to call on. The reason for this is because of their expertise in resolving such disputes.
Additionally, if you are looking to steer clear of any issue with the IRS and the law, engaging a tax attorney can be beneficial. Just be sure to ask them for help in the planning stages of devising your tax strategy.
When you run your own business
Whether you already run or are considering starting up your own business, a tax lawyer is a professional that could be a great deal of use to you. This is because they can advise you on many different aspects of your business that will impact on your tax.
For example, if you choose to incorporate your business, you will be classed in a different tax bracket if you did not do this.
Other issues that a tax attorney may be able to help business owners include wage garnishment and legal contracts, among many others.
You run into trouble with the law regarding your tax
Finally, one of the most significant ways a tax attorney can help you is if you have the IRS knocking at your door. Something they tend to do if you have tax debts to be paid, or are querying your tax payments.
Additionally, you may find yourself in the uncomfortable position of being accused of a tax-related crime like fraud. Fortunately, the expertise of a tax attorney can make all the difference to your case.
Also, if you have or are close to having a levy on your wages or accounts, a tax account is definitely the person that can help. In fact, they may be the only thing standing between you and an infringement of your rights.
A word of warning here: When it comes to tax, money is critical, and that can often mean that the cheapest option will seem more appealing when looking for help with your issue.
Of course, this can make working with a Tax Advisor more appealing, too, as they tend to the cheaper of the options.
However, if you do find yourself coming up against the law, the only person that can help you is a quality tax lawyer. Something that means they are worth the extra investment involved.
How to choose the right tax attorney
Now you understand the difference between the situations where you would need the services of a Tax Advisor and a tax lawyer, we can move onto other vital elements of the selection process.
The first of these is that you need to check any tax attorney qualifications. In particular, make sure that they hold a J.D or Juris Doctor degree, and that they have passed the state bar exam. Also, some tax lawyers may have a specialized master’s degree known as an LL.M. A qualification that focuses specifically on the legal aspects of taxation and will ensure your attorney is very well qualified to assist you.
Next, before you choose a tax attorney, it can be advantageous to ensure they have the necessary experience in the area that you are struggling with. With that in mind, asking them what area of tax their specialist lies in is a smart choice.
Don’t be discouraged if the tax attorney you approach isn’t an expert in the field you require, though, as they may be able to refer you to one that is often within the same practice.
Then there is the more practical and pragmatic issue of your partnership with a tax lawyer to consider. The amount they charge for their services being the most obvious. Be sure to check whether they offer any free services like tax clinics or legal aid to those that are struggling with money too.
Additionally, if you find yourself in a particularly complicated situation, or are already dealing with trouble from the IRS, a qualified tax attorney is the person to call.