Be Heard: How A Tax Attorney Stands Up to the IRS for You

A tax attorney specializes in the complex and technical field of tax law. They are experts in legal matters concerning taxes and hold a Juris Doctor (JD) degree, often supplemented with a Master of Laws (LLM) in Taxation. This specialized legal training equips them with expertise in tax laws and regulations.

Tax attorneys handle a wide range of areas within taxation law, including but not limited to:

• Tax Dispute Resolution: Representing clients in disputes with tax authorities, whether it involves negotiating with the IRS or representing a client in court.

• Tax Defense: Providing defense for individuals and businesses accused of tax evasion or fraud. Tax professionals ensure that their client’s legal rights are protected throughout the investigative process.

• Complex Tax Monitoring: Advising on structuring financial affairs and transactions in a way that minimizes tax liabilities legally and efficiently. This often involves sophisticated strategies for businesses or special financial transactions.

• Tax Debt Resolution ie Offer in Compromise: This is a financial arrangement where taxpayers negotiate with tax authorities to resolve their tax liabilities for less than the full amount owed. It involves demonstrating financial hardship and proposing a lump sum payment or a structured payment plan.

• Audits: Representation during an IRS audit can help ensure that the process goes smoothly and that your rights are protected. A tax attorney can help negotiate terms and handle any disputes that arise.

• Appeals: If you disagree with the conclusions of an IRS audit, a tax attorney can guide you through the appeals process, providing representation and advocating on your behalf.

• Business Structuring: From the inception of a company, a tax attorney can advise on the tax implications of business transactions. This can help structure the business in a way that is tax-efficient and compliant with current business tax laws.

Engaging a tax attorney before issues arise can often prevent more significant legal challenges down the road, saving you time, stress, and money. They are invaluable not only in dealing with disputes but also as proactive advisors who ensure compliance and optimization of your tax obligations.

What to Look For in a Tax Attorney

When selecting a tax attorney, it’s crucial to consider several key qualities that can significantly impact the outcome of your tax issues. Here’s a more detailed look at what to consider:

1. Experience:

• Relevance and Depth: Choose a lawyer who not only has years of experience but also specific experience relevant to your tax issues. For instance, if you are dealing with IRS audits, look for someone who has successfully handled audit defenses.

• Variety of Cases: Experience in a diverse range of tax matters is beneficial as it demonstrates the attorney’s ability to handle complex and varied situations.

2. Specialization in Tax Law:

• Certifications: Check if the attorney has advanced degrees or certifications in tax law, such as a Master of Laws (LL.M) in Taxation, which indicates a higher level of specialization.

• Continuing Education: Tax laws change frequently. The tax attorney must stay informed about the latest tax regulations and legal precedents through continuing education and professional development.

3. Good Track Record:

• Success Rates: Look at the outcomes of the cases they have handled. A good track record in achieving favorable outcomes for clients is a strong indicator of competency.

• Client Testimonials: Reviews or testimonials from past clients can provide insights into the attorney’s effectiveness and reliability.

4. Strong Negotiation Skills:

• Dealing with Tax Authorities: Effective negotiation skills are essential, particularly in reducing liabilities and settling disputes with tax authorities.

• Strategic Thinking: The ability to strategize and think several steps ahead is crucial during negotiations to ensure the best possible outcome for the client.

Tax attorneys act as your personal advocates with the IRS, representing you in all communications and negotiations. This professional representation is crucial, especially in complex cases or when disputing IRS decisions. 

By having a qualified tax attorney speak on your behalf, you ensure that your arguments are legally sound and strategically presented. It can also help you maximize the chance of a favorable outcome.

How to Appeal in an IRS Decision?

If you disagree with a decision made by the IRS, you have the right to appeal. Here’s how you and your tax lawyer can proceed with an appeal:

1. Understand the Decision: First, thoroughly review the notice or decision letter from the IRS to understand why the decision was made. The notice usually contains detailed information about why you owe additional tax or why a penalty was assessed.

2. File a Written Protest (if required): For many decisions, especially those involving larger amounts, you may need to file a formal written protest. This should include:

• Your name, address, and daytime telephone number.

• A statement that you want to appeal the IRS findings to the Office of Appeals.

• A copy of the letter you received that shows the determination you are disputing.

• The tax periods or years involved.

• A list of each disagreement and why you disagree.

• Facts supporting your position on each issue.

• The law or authority, if any, on which you are relying.

• Your signature under a perjury statement.

3. Request a Conference with Appeals: The IRS offers an independent Appeals process. You can request a conference with an Appeals or Settlement Officer, who will review the issues of your case independently. You can make this request through the IRS website or by responding to your notice if it suggests appealing.

4. Alternative Dispute Resolution (ADR): Consider using the IRS’s Fast Track Settlement (FTS) or mediation options, which can be quicker than the traditional appeals process. It is also recommended instead of going into a tax litigation process.

5. Understand the Timeline: Be aware of the IRS timeline. Typically, you must file your appeal within 30 days from the date of the decision notice. Failing to appeal within the prescribed time frame can limit your options.

6. Follow Through: After filing your appeal, you might need to attend meetings or provide additional documentation. Stay engaged and responsive to requests from the IRS Appeals Office to ensure the best possible outcome.

This process allows you to state your case and potentially overturn an unfavorable IRS decision. For more detailed guidance, you can refer to the IRS’s official website or consult with J. David Tax Law. This tax law firm specializes in taxation law, assessments, and IRS disputes.