Business Tax Attorney

Tax lawyers are attorneys who consult clients in the area of tax law. They are normally retained by individuals and business entities experiencing problems with the Internal Revenue Service—the IRS—or with state taxation agencies. Many tax issues can be solved by the individual or company with the assistance of a good accountant, but as the internal revenue code becomes more and more complex, individuals and businesses may find themselves in a situation where they need the expertise of a qualified tax lawyer.

To become a tax lawyer an individual can take many routes; the most direct is to attend an accredited law school and graduate with a Juris Doctorate—JD—degree with a specialization in the area of tax law. Oftentimes, individuals graduate from law school without specializing in the area of tax law but decide later on in their careers to expand their area of expertise and then take further coursework to familiarize themselves with the field. Other tax lawyers began as accountants or CPAs who wanted to further their careers with the expansion of their expertise into the field of law.

Such individuals must still seek out a law school, apply, complete the appropriate coursework, sit for and pass their state’s bar exam, and become licensed to practice law in their chosen state; their advantage is that they are already familiar with tax codes and the field of taxation; they are simply supplementing their knowledge with the laws pertaining to the area.

Whatever path the individual chooses, upon graduation and successfully passing the bar exam, a tax lawyer needs to focus on building his or her practice; that is, attracting clients and winning cases. Because the area of tax law is a private practice, such attorneys need to have good marketing skills as well as skills to represent their clients well. Once the clients are attained, new tax attorneys must focus on doing what is best for their clients, which will begin to build a good reputation and hopefully bring in more clients.

The clients of tax attorneys are individuals as well as business entities. While it is common for many businesses to have CPAs who handle their tax obligations, the complexity of the federal and local taxation structures can make the task of documenting and filing returns confusing, sometimes landing both individuals and businesses into trouble with the IRS or local taxing authority. When such parties find themselves in a situation they cannot handle themselves, consulting a tax attorney is the right choice.

A potential client makes an appointment to see a tax attorney about their issue. Some tax attorneys charge a consultation fee, while others do not. During the first consultation, the attorney looks at the situation and considers what the best course of action is for the potential client, and what the attorney can do, if anything, for them. After some discussion about the situation and some consideration, the tax attorney will decide what he or she will do and how much it will cost.

There are three types of fee schedules most tax attorneys use; the type chosen largely depends on the special circumstances of the case, how much work is anticipated, and the affordability of the services for the potential client. The three most common structures are flat-rate, or “fixed”, retainer, and hourly.

For situations such as filing a return, the tax lawyer would probably chose the flat rate fee schedule, telling the client it will cost them a set amount to complete the task. For circumstances that are more complicated, such as those that would involve discussing the case with an IRS agent, the hourly rate is most likely. The attorney would set an hourly rate and then keep track of the hours he or she spends working on the case, and send the client the bill when the case is closed.

The retainer schedule is most common in businesses who anticipate the need for a tax attorney for many issues over a long period of time, or for all of their tax issues all of the time. This contract typically involves a lump sum due up front, and then either a refresher retainer due on a set schedule or a transition to an hourly rate at some point, and the business would just have to budget the attorney’s fees into their regular operating costs.

Tax attorneys play an important role in both the legal and political fields. They require a fair amount of specialized education, must work to build their own business and keep their clients happy, practice law, and run their own daily financial obligations. Individuals and businesses that need their services are grateful such attorneys are available should they find themselves in tax trouble.