How to Choose the Right Tax Attorney

People experiencing tax issues such as audits, tax debt, or accusations of tax evasion and fraud may underestimate the importance of understanding how to choose the right tax attorney. But if you are having trouble with the IRS, ignoring the problem will only lead to more fees and more problems such as fines, interest charges, liens on homes or businesses, wage garnishment, and even imprisonment. You have worked hard for what you have, which is why you need to understand how to choose the right tax attorney to deal with your financial concerns.

Preparing a tax audit

There are two types of tax attorneys that you will encounter- those who specialize in tax law, and those who are in general practice but also do tax law. Choosing a tax attorney who specializes in tax law is the best way to ensure that your interests are properly represented. You will want to start by finding out about your attorney’s professional reputation by talking to former clients. You will also want to check with your state’s bar association and the IRS to ensure that your tax attorney is in good standing.

When you are wondering how to choose the right tax attorney, it’s almost a given that the fee charged by a tax attorney is going to be an important consideration. The simple truth is that good legal reputation doesn’t come cheap, but it can often be far less expensive than the alternative. Before you begin working with any attorney, he or she should tell you how much they will charge in terms of hourly rate, and they may even give you an estimate of what the total case will likely cost. Be sure to think about what you will need to do to pay the bills before you agree to using a particular attorney. You may want to talk to several local tax attorneys to find out what their fees generally are, and you will also want to find out which attorneys offer a payment arrangement that you can work with. In most cases, your tax attorney will require a “retainer”, which is like a down payment for work that will be done. Some attorneys will charge only a fixed or flat rate, but this is usually only true of simple cases that will not require significant amounts of research or court time. There are also some tax attorneys that will work on a contingency, which means that they will collect a percentage of the money you are awarded or the amount you save in addition to court costs, fees, and other charges.

Another important consideration on how to choose the right tax attorney is determining whether his or her personality will work with yours. You will want to be sure that you can clearly communicate with him or her, and feel that he or she will do their best to represent you. While choosing a tax attorney can be a little bit scary, it is also the best thing that you can do to protect yourself when dealing with tax issues.