What is a Tax Attorney?

A tax attorney specializes in working with taxpayers to solve their problems with the IRS or state revenue department. In fact, they generally focus only on tax issues and relief. A tax attorney can help a taxpayer in trouble make it through an audit, have fines reduced, liens removed, and can navigate through the minefield of small business and self-employment tax issues.

Many small business owners consider their tax attorney to be as vital as their accountant. This is because a good tax attorney can help head off tax problems before they even begin. He or she can see potential trouble spots for a business and can advise the owner how to avoid them.

U.S. tax law is not only labyrinthine in structure, it also changes nearly every year. Thus, a good tax attorney will keep up with the latest changes and can advise clients accordingly. A tax attorney may also be helpful when setting up trust funds, stock portfolios and the like, so a taxpayer doesn't run into unexpected surprises on April 15.

A person looking for a tax attorney shouldn't call the first one listed in the phone book. He should look around, ask friends, or even his personal attorney (if he has one) to recommend a good tax specialist. As a prospective client, the taxpayer should look for a tax attorney with extensive experience in dealing with the IRS, in debt management cases, and in working with real live taxpayers. He should also ask the attorney for references. The taxpayer should also make certain his tax attorney is a member of the American Bar Association and the state bar association. A client should also make sure he knows what his attorney's rates are, and make arrangements for payment early on in the consultation process.

If a taxpayer finds himself in over his head where the IRS is concerned, he should certainly consult a tax attorney. Tax fines tend to snowball, and it is always in the taxpayer's best interests to get problems solved while they are still relatively small ones. Waiting until the last minute to see a tax attorney could be extremely costly, and might result in jail time for the taxpayer, as well as higher legal fees.

Money invested in the services of a tax attorney can be considered a wise investment for a taxpayer.

The Way to Donate Your Money to Charity Tax-free

by Jeff syam


What is Charity? A charity is a particular type of voluntary organization - that must aim at the relief of financial hardship, the advancement of education, the advancement of religion and other purposes beneficial for the welfare of the community. Charities can be organized in a number of different ways each of which has a different governance structure for example, a charity that is formed as a registered company will be governed by a board of directors, will be governed by a board of trustees if set up as a trust with governing document that commences the charity's objects and how it is to be dealt once registered. A charity is not allowed to have political objectives or participate in political soliciting other than in a generally educational sense.

Many wealthy people, includes leaving maximum part of their earning to a favorite charity as an significant part of their estate planning. You need not be wealthy to include charitable giving in your plan instead you need to be sure that your donations maximize the benefits both for the charity and for your estate. Many trained and qualified professionals will aid you to help you make your estate planning effective and leaving money to charity no more difficult.

According to Lawrence Wiener, director of the National Association of Estate Planners and Councils the very best place to leave money to charity is in a qualified plan or IRA, because the money in these funds is subject to estate taxes however, when it is donated to a charity, it can be donated tax-free or otherwise your money will go through probate that can cover few months and will be taxed. Apart from these judicial formalities, lawyer's fees and other court costs will be taken out of your assets reducing the amount of receiving funds.

When donating money in the charity that you have reserved via an IRA or qualified plan avoid delaying receiving the funds and unnecessary draining of your resources since no court processes are involved. Also remember that the Retirement Equity Act of 1984 requires the agreement of your spouse if you plan to donate more than 50 percent of your IRA to charity. Inclusion of a statement commencing that your executor will administer your resources at time of insufficient funds in the IRA or qualified plan to carry out your donation wishes from the estate in your will should be mentioned.


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Tax attorney for beginners

by Dylan Brent


Tax. Most people only need hear the word and they develop a sudden urge to find the nearest departing space shuttle and immigrate to Mars. Why is it such a sore subject to most people who are affected by the potential hazards of poor management of their personal taxes?

People generally are not accountants, so the blizzards of paperwork that one must brave in order to not face tax penalties can be rightfully feared. The IRS has attempted to make life easier in that they have tried to simplify the process for the average taxpayer.

Generally, the Internal Revenue Service, or IRS, requires each individual who qualifies for tax to hand in a full blown tax return on a certain date early every year. It is good to be prepared for this by having all ones deductions grouped in the appropriate manner to avoid getting penalized simply because of laziness and negligence. One must first of all identify oneself correctly. Are you single, married filing together, married but filing separately, are you the head of the establishment or a widowed wife with dependents? The head of household qualifies for lower tax rates. There is a list of form one might have to fill out additionally to the basic tax form, depending on how you classify in the above list and what type of income bracket you fall into. One has to report their yearly earnings and a form must by provided by their employer at the beginning of every year for this purpose. Interest and other additional incomes must also be reported and local banks and investment organizations can provide a form for this. Some areas that are destined to have errors, which are bad since the IRS may give penalties, are travel and entertainment deduction, or perhaps home or office capital gains or losses. If any tiny or massive mishaps are detected, one can make corrections with another form.

When providing a tax return one should take measures to assure punctual and precise attention. Make sure that it is neat and organized. Round off to the closest unit of currency, this makes calculating much easier and more guaranteed. Refer to previous year forms to ensure you do not miss important factors. Hand in returns in the required time regardless of whether there is money to be paid. If there is outstanding payment then write out a check for the amount. Keep reproductions of all of your documents on record. If you are not sure about any aspect of the process then it may be advisable to visit a tax preparation organization or tax attorney and discuss the angles. Categorize all documents into folders for future efficiency of storage to make the following years easier to organize. Hold on to your receipts and documents for at least three years after the submission deadline.

Whether you are a individual or a small business, there will always be the agonizing task at hand of trying to keep up with the dreaded IRS and yearly audits and such, so make sure that all the above guidelines are thrown aggressively into full swing, and you may just find yourself on top of your financial life, the benefits of course being infinite, as the more work you incur on yourself the harder life is to enjoy!


About the Author
Dylan wrote this artical for the online marketers at Capital Tax Consulting (Services).

The IRS Letter You Don't Want to Receive

by Rich Chappo


A letter from the IRS used to send each of us into fits of anxiety. Now we get them all the time, since the IRS likes to send us forms every other day. That being said, there is still one particular letter you do not want to receive from the agency.

The first thing you will notice about the letter is it is thin. This should worry you. If it contained forms it would be thick. As you open it, you see at first glance that it is not a form letter. This one has your name and social security number on it.

The dreaded thin letter from the IRS promises misery in all its simplicity. It is usually a one page statement, but packs the punch of a tank. Why? The IRS notice is issued under only one circumstance. The agency has found something wrong with your taxes.

Now, it can be said in truth that the ubiquitous notice sometimes is a good thing. The problem can be that you paid too much money. I had this happen once. Eighteen dollars. This is, however, admittedly a rare event and the news usually is not positive.

The bad news is you are probably being audited if you receive this letter. Go ahead, cry. Let it out. Once you are done, actually read the full letter. The audit may not be the torturous event you are imagining. In fact, it rarely is.

For the majority of people, the indication you are being audited is not the foreshadowing of a rough time you might expect. Instead, you stand a good chance of receiving what is called a correspondence audit. Yep, you get to deal with everything by letter.

The real beauty of these mail audits is their simplicity. The letter will detail what the agency is contesting. It will also provide a potential solution for you. The solution may not even involve you paying more tax, but it probably will.

Once you receive the letter, the burden is on you. You are usually allowed to do nothing if you agree with the proposal of the agency. If you want to fight it, you have 30 days to send a letter saying as much and why.

If you accept the proposed changes, the audit is over as long as you take any required action such as sending in more money. If you want to fight the agency, you can. Understand, however, you might be opening yourself up to a full audit.

If you receive one of these letters from the agency, don't feel like you are being picked on. The IRS sends out millions of them each year to handle issues with taxpayers. If you get a particularly nasty one, go talk to a tax attorney so you know your rights.


About the Author
Find tax lawyers to fight the IRS at BusinessTaxRecovery.com.Click here for other unique audit articles.

How To Choose The Right Tax Attorney

By Ronn Espy


It is absolutely necessary to choose the right tax attorney if you are burdened with tax issues such as being audited, having IRS tax debt, being accused of investment fraud or other IRS-related concerns. If you ignoring the tax problem will only make it worse it is best to get a tax lawyer. If you wait too late you could be subject to tax penalties that include fines, interest, liens, garnishment and other penalties up to imprisonment. With so much at stake when dealing with tax legal issues you should find an attorney who specializes in tax law.

If you have decided to use the services of a tax lawyer, you need to know how to find a good tax attorney.

Attorneys may be a general practitioner or a specialist. You need an attorney that specializes in tax law. Also, a good reputation and track record with former clients are important. The tax attorney should be in good standing with the IRS and any bar association.

Another consideration must be the attorney's fee. Now, be aware that legal representation may not be cheap. However, with you attempting to remedy the tax situation yourself, the cost to you could be multiple. First, consider the cost. The actual attorney fee will vary depending on location, the nature and complexity of the case, the particular lawyer involved and the tax attorney's hourly rate. So before you jump and choose a tax attorney that seems ideal, to prevent delay and disappointment, make sure that you can afford the representation.

Contact a few tax attorneys and ask about their fee schedule, find a payment arrangement that fits your situation. Most reputable tax attorneys will require a down payment for work performed, this is known in the industry as a "retainer". The retainer amount will vary. Part of the retainer will be refunded if the total amount is not used.

Here are some common fee structures:

I. Fixed or Flat Rate: This is an arrangement were specific legal services are covered by set fees.

II. Hourly Rate: Very common. Fees will be assessed based on the time the tax attorney spends on your legal issues.

III. Contingency Fee: Is a fixed percentage of the amount of recovery the tax lawyer is able to secure, which will serve as the attorney's fee. However, there are other expenses such as court costs, filing fees, copies, phone charges and more that will be your responsibility.

A successful tax lawyer with a proven track record will likely have a background in tax law, either as a course of study or in service in the IRS. They will also probably have financial experience in some other field such as a Certified Public Accountant. If you have a tax issue involving the IRS, make sure that you choose a tax attorney that is licensed to represent clients before the IRS.

In choosing the right tax attorney you want to know if the tax attorney will handle your case personally or refer it out. How many cases has the tax lawyer or firm handled. What is the ratio of cases that went to trial to those that were settled and the outcomes of those cases.

You must share personal, sensitive and confidential information, make sure you choose someone you are comfortable with. Ultimately, it is essential to choose a tax attorney that you can trust to represent your interest and bring relief to your tax issues.

Get tax relief. Taxes can be confusing and stressful get more information and help on Choosing a Tax Attorney as well as other resources related to tax preparation and tax resolution at Tax Preparation Help here: http://www.tax.totalinfoguide.com