A tax attorney is a person who provides legal assistance to individuals, business organizations and even the government in cases relating to the taxation of income or estate. Tax law or income tax law is a field of law in which governmental or public bodies, including state, national and local governments employ a body of legislation and rules to judge and collect taxes from an individual in a lawful context. The IRS, which is the chief administrative lawmaker for U.S. tax matters is a very senior government office but holds vast discretionary authority not only over income tax but also over all other federal laws including those governing the internal revenue services, customs and ferry regulation among many other areas.
Such discretionary authorities give tax attorneys a lot of power and flexibility to deal with clients who have disputes with the Internal Revenue Service over tax liability or with taxpayers and their representatives over federal tax compliance. In some instances the IRS can choose not to carry out a client’s request based on lack of sufficient evidence or on lack of adequate information. It has absolute discretion as regards to how it implements or carries out regulations or laws passed by Congress in the area of taxation. The courts are particularly strict about following the U.S. tax code as interpreted by Congress.
A qualified tax attorney can advise his/her clients on whether or not they qualify for any tax relief programs offered by the Internal Revenue Service. This advice can also be useful in determining whether or not they may be entitled to file any claim for tax depreciation, write off their mortgage interest or loss, or depreciate any capital assets that might have been used primarily as instruments of wealth transfer. There may also be circumstances under which one may be eligible for an adjustment to the basis for tax-free treatment of a Roth IRA. This might include education expenses and medical expenses incurred in getting the education. Taxation laws provide extensive provisions regarding charities and the taxation of the donations made to them.
Tax attorneys generally deal with a variety of other issues, including estate and trust administration, adoption, annuities, trusts, and state income taxes. They are required to retain a certain number of enrolled agents, or tax preparers, who are authorized to represent their client before the IRS. Certified public accountants also offer a variety of tax planning services. Taxation laws are constantly changing, so it is necessary for tax attorneys to keep up with these changes. In fact, recent changes by the IRS have led many CPAs to consider incorporating so they can more effectively serve their clients.
One of the key purposes of a tax attorney is to assist clients in resolving longstanding or unsettled federal and state tax disputes. Such disputes can arise at the federal level, state level or between a corporation and its related parties. In all cases, tax authorities must handle the resolution of such disputes in a reasonable and timely manner. This means that tax attorneys must not only adequately research and understand the technical and procedural issues that are involved in such cases, but they must also be skilled negotiators in order to satisfactorily resolve the matter.
A good Colorado Springs tax attorney will have extensive experience in dealing with federal and state tax problems, as well as local taxation. Their knowledge and experience will allow them to quickly locate the applicable tax laws, and work with their clients to resolve the issue. Additionally, tax attorneys are familiar with the technical terms and terminology that are used by tax authorities. This allows them to present their clients with accurate information regarding their small business tax liability problem. In addition to preparing and representing their clients before the IRS, many experienced tax attorneys also help their clients settle their outstanding tax liability issues with their creditors. Finally, some tax attorneys provide counseling services to their client on ways to avoid, or minimize the tax liability resulting from various tax problems.