What Does a Tax Attorney Do?

Image of a book titled Tax Law next to a judge’s gavel.

“Our tax code is so long it makes War and Peace seem breezy.” – Steven La Tourette, U.S. House of Representatives from Ohio.

A tax attorney is exactly what the name implies, a lawyer who specializes in the laws and procedures governing taxation. The world of taxation is complicated and ever-changing, and tax lawyers work to stay up-to-date on new rulings and changes to federal and state tax regulations. They have an understanding of accounting and finance, the ability to assess complex tax questions, and represent their clients in court when necessary. As practicing lawyers, they have the right to keep their clients’ information confidential, in contrast to a CPA, who does not have this privilege.

The laws that govern taxation are some of the most complex in our legal code, and nothing is really black and white. The legal reference site HG.org describes it as “a vast, black hole waiting to swallow up anyone who dares enter.” And that’s about how one feels upon receiving an audit request or any other notice from the IRS.

That’s where a tax attorney comes in, guiding clients through the grey areas and ambiguities, having the breadth of experience to leverage different legal interpretations in their favor, all the while keeping clients safely within the letter of the law.

It is tempting for some taxpayers to try to research these laws and to represent themselves before the IRS, but it is much safer and more effective to enlist a professional as your ally. By having a good tax attorney in your corner, you can be assured that you’ve covered your bases and will get an optimal settlement.

In short, tax lawyers are equipped to level the playing field when it comes to dealing with the IRS. Here are some of the most common issues these specialists take care of.

Unpaid Back Taxes or Unfiled Tax Returns

If you have taxes from previous years that were partly or fully unpaid, you can accumulate interest and

Image of a female tax attorney with a client. There is a statue of a woman holding scales and balance in her hand, representing justice. — lawyer in the office.

penalties with the IRS. This might happen intentionally or not. Regardless of the reasons, besides charging interest and fines, the IRS can also seize assets and property, garnish wages, place liens on property, and more. These are all serious consequences, and someone in this situation will often enlist a tax attorney to help them negotiate an Offer in Compromise to settle with the IRS.

Failing to file a required tax return is also a serious issue. It can result in penalties, or the IRS may file your missing tax return for you, minus any deductions or tax credits you would have gotten, making your taxes a whole lot higher than they should be. Delinquent returns are also scrutinized much more closely. A tax attorney can make sure your late returns are up to par, accurate, and complete, to avoid any further problems and restore your standing with the IRS.

Audit by the IRS

Getting an audit notice doesn’t always mean that you’ve done something wrong, but it’s not most people’s idea of fun. It does mean that the IRS is going to look over your records pretty carefully. Tax attorneys will help their clients to prepare for this, navigate meetings with the IRS, and if the case goes to litigation, they will represent their clients in tax court.

Setting Up a Trust and Estate Planning

Image of a book titled Tax Law next to a judge’s gavel. — Tax form, calculator and dollars on table

Estate planning is a complex sub-section of law that tax attorneys are adept at. This includes drafting wills, organizing family trusts, and administering estates in a manner that takes tax regulations into account and provides the greatest benefit for their clients.

Setting Up or Selling a Business or Partnership

A tax attorney can help new business owners to set up an entity in a way that will provide the most favorable rate of taxation. They take into account factors like depreciation and capital gains and losses to reduce tax liabilities. In the case of selling a business, taxes can take a huge chunk out of the selling price. Having the terms of sale reviewed by a good tax lawyer can minimize unnecessary losses and make everyone a winner.

“Ignorantia Juris non Excusat”- “Ignorance of the Law Excuses Not”

This is a legal principle that goes back to the days of Rome. If you are not aware of certain tax laws, or a recent change in statues or interpretation, our legal system does not excuse you. Having a reliable tax attorney on your side to navigate these issues can keep you safe, sane, and solvent. Tax attorneys do cost you something, but often save you much more. You’ll keep yourself worry-free and safe from fines and audits, and keep your taxes at the most reasonable level.

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Do you need help with tax-related issues such as unpaid back taxes, IRS penalties, or trust fund matters? Cumberland Law Group, LLC is a Better Business Bureau-accredited legal firm that strives to develop and maintain strong personal relationships with each client. Our tax attorneys in Atlanta have helped hundreds of individuals and businesses solve IRS and State tax issues. Give us a call at (678) 385-5953, or connect online at Cumberland Law Group. We’ll take the time to listen to you and find out what is important to you, and only an experienced tax attorney will work on your case.