Tax lawyers are legal professionals who work in terms of tax planning and represent clients in cases of tax disputes or advise on problems with the government. The work of a tax lawyer involves much more than representing one of the parties in case of civil or criminal lawsuits related to taxes. It also involves advising people beforehand about the legal intricacies of tax laws and how to legally minimize their tax liabilities.
In tax planning, it is important to consult an experienced tax attorney so that he or she can advise on the best legal means available to minimize taxes, obtain exemptions or refunds, and the best filing arrangement. Federal and state tax laws are complex, and sometimes the laws differ from state to state. There are many tax breaks available to certain groups, such as seniors, who may not be aware of those exemptions. However, trying to minimize or avoid paying taxes using loopholes without first consulting an attorney is risky and can lead to problems with the government and the Internal Revenue Service.
Tax attorneys also represent a person or organization under investigation for tax evasion/fraud. This involves negotiating with the IRS on behalf of the client, fighting for the client in the event criminal proceedings are initiated, and working on reduced penalties if the client is found guilty. A knowledgeable tax attorney can settle out of court for the tax defaulter and minimize penalties if convicted.
Consulting a tax attorney is a better option than consulting a tax advisor or accountant because, as a lawyer, a tax attorney cannot be compelled to appear as a witness against his client. Therefore, all communication between the lawyer and her client is confidential, which is not the case if a tax advisor makes a statement against a person accused of tax crimes.
It is very important to select the right lawyer, with experience in the required area. Aside from experience, you must have excellent references and be a member of the bar association. A good tax lawyer is an asset that can save you from a lot of trouble later.