Thursday, March 19, 2009

What Does A Tax Lawyer Do?

By Richard Banbury

Tax lawyers are probably most often used by businesses rather than consumers although the services of a good lawyer with this kind of expertise can be useful to consumers if they are having problems with taxation authorities. But, in general terms, if a consumer needs tax advice when it comes to filing a tax return then they will generally use an accountant in the first instance.

This isn't always enough for a business, however. Here, an accountant can help you meet your tax obligations as a company but a tax lawyer could add something extra to the mix. From a planning perspective, for example, tax lawyers can simply help your business make sure that it has the kind of structure and operating procedures that minimize the amount of tax that your business will have to pay. Your lawyer here will work to make sure that you are meeting your business tax obligations from a legal perspective but will also try and keep these obligations to the lowest possible cost.

One of the big advantages to using the services of these kinds of tax specialists is the fact that they have a deeper understanding of the kinds of business taxes that your company may be liable to pay. They can also make moves to make sure that your company reaps all available tax benefits in the most cost effective way and that it does not end up paying too much in tax.

Do bear in mind that there are different kind of taxation issues in play here and not all tax lawyers may have expertise in all areas. In some cases, for example, you may find that a different kind of specialist lawyer can give advice on tax issues as they relate to his or her field. So, an employment lawyer may also be able to advise you on the tax issues that your company needs to consider from a payroll point of view.

In some instances companies and individuals may retain a tax lawyer on a regular basis or may even employ them in house in the case of large corporations. In others you may only need to call on this kind of lawyer for advice when you are planning the structure of your business or when you have a personal problem with a taxation authority and need qualified representation.

In some cases you may also find that your lawyer here has other business qualifications such as an accounting degree. This extra experience can be worth looking for as it means that you can get the best levels of advice from all angles when it comes to taxation issues. So, a lawyer who also has a CPA qualification could be useful in this instance.

At the very least you should check that any tax lawyer that you might use has all relevant qualifications. These include a law degree and admission to any regional legal body such as a state bar. You will often also find that many lawyers in this field will have taken time to gain specific tax qualifications such as a master's degree.

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