Tax Attorney Colorado: When Do You Need One?

Tax Attorney Colorado: When Do You Need One?

There are several benefits to hiring a tax attorney in Colorado. A tax attorney has specialized knowledge and experience in tax law and can provide you with guidance and advice on complex tax issues. If you are being audited by the IRS, a tax attorney can represent you and ensure that your rights are protected throughout the audit process. A tax attorney can help you develop a tax planning strategy that minimizes your tax liability and maximizes your tax savings.

How To Choose A Good Tax Attorney in Colorado

Choosing a good tax attorney in Colorado can be a daunting task, but here are some factors to consider that can help you make an informed decision:

  • Qualifications and experience: Look for a tax attorney who is qualified and experienced in handling tax-related matters. Check their credentials, including education, training, and any certifications or specializations in tax law.
  • Reputation: Check the attorney’s reputation by reading online reviews, testimonials, and ratings from previous clients. You can also ask for referrals from friends, family, or colleagues who may have worked with a tax attorney in the past.
  • Communication skills: Choose a tax attorney who communicates effectively and can explain complex tax laws and regulations in simple terms that you can understand. A good tax attorney should be able to answer your questions promptly and provide updates on your case.
  • Fees: Understand the attorney’s fee structure and how they charge for their services. Some attorneys charge hourly rates, while others charge a flat fee or a percentage of the tax savings they help you achieve.
  • Availability: Choose an attorney who is available and accessible when you need them. A good tax attorney should be responsive to your calls or emails and provide timely updates on your case.
  • Chemistry: It’s essential to choose an attorney that you feel comfortable working with and who listens to your needs and concerns. A good tax attorney should be approachable, empathetic, and able to build a good rapport with you.

Seeking A Tax Attorney In Your City?

Here are the five biggest cities in Colorado by population, according to the latest estimates from the U.S. Census Bureau (as of 2021):

  1. Denver – population of 753,385
  2. Colorado Springs – population of 481,603
  3. Aurora – population of 395,943
  4. Fort Collins – population of 172,235
  5. Lakewood – population of 159,844

Other notable cities in Colorado include Boulder, Pueblo, Greeley, and Longmont.

Common Fees For Tax Attorneys in Colorado

Tax attorney fees in Colorado can vary depending on several factors, including the complexity of the tax issue, the amount of work involved, and the attorney’s experience and reputation. Here are some common fee arrangements that tax attorneys in Colorado may use:

  • Hourly rate: Many tax attorneys charge by the hour, with rates that can range from $250 to $500 per hour or more, depending on the attorney’s experience and expertise.
  • Flat fee: Some tax attorneys may charge a flat fee for certain services, such as tax return preparation or IRS audit representation. Flat fees can range from a few hundred to several thousand dollars, depending on the complexity of the issue.
  • Contingency fee: In some cases, a tax attorney may agree to work on a contingency fee basis, where the attorney’s fee is contingent upon the outcome of the case. This fee arrangement is most common in cases involving tax debt relief, such as offers in compromise or installment agreements.
  • Retainer fee: Some tax attorneys may require a retainer fee upfront to secure their services. A retainer fee is a set amount of money that is paid in advance and is typically used to cover the attorney’s fees and expenses.

It’s essential to discuss fee arrangements with your tax attorney upfront and make sure you understand the terms and costs involved. Your attorney should provide you with a written agreement outlining the scope of services, fees, and payment terms.

Common Individual Tax Issues

Here are some common individual tax issues that taxpayers may encounter:

  • Failure to file or pay taxes: If you don’t file your tax return on time or fail to pay the taxes you owe, you may face penalties and interest charges.
  • Incorrect or incomplete tax returns: If you make mistakes on your tax return or leave out important information, the IRS may send you a notice or audit your return.
  • Tax debt: If you owe taxes that you cannot pay, the IRS may take collection actions, such as placing a lien on your property or garnishing your wages.
  • Unreported income: If you fail to report all of your income, you may be subject to penalties and interest charges.
  • Tax identity theft: Tax identity theft occurs when someone uses your personal information to file a fraudulent tax return or claim a refund in your name.
  • Retirement account issues: Withdrawals from retirement accounts may be subject to penalties and taxes, and contributions to certain retirement accounts may be limited.
  • State and local tax issues: State and local tax laws can vary widely, and taxpayers may face issues such as property tax assessments, sales tax audits, or state income tax audits.

Corporate Tax Issues

Here are some common corporate tax issues that businesses may encounter:

  • Failure to file or pay taxes: Similar to individual tax issues, if a business does not file its tax return on time or fails to pay the taxes owed, it may face penalties and interest charges.
  • Tax planning: A business should have a solid tax planning strategy in place to minimize its tax liability and take advantage of available tax deductions and credits.
  • Unreported income or deductions: Businesses may face penalties and interest charges if they underreport their income or overstate their deductions.
  • Employee classification issues: Businesses must properly classify their employees as either employees or independent contractors, as this affects the company’s tax obligations and the employee’s eligibility for benefits.
  • Sales tax issues: Companies may be subject to sales tax audits, and sales tax laws can be complex and vary by state.
  • International tax issues: Businesses that operate globally may face issues such as transfer pricing, foreign tax credits, and compliance with international tax treaties.
  • Business structure issues: The choice of business structure, such as a corporation, LLC, or partnership, can affect a company’s tax liability and reporting requirements.

Common Tax Resolutions

Here are some common tax resolutions that taxpayers may use to resolve tax issues:

  • Installment agreement: Taxpayers who cannot pay their taxes in full may be able to set up an installment agreement with the IRS to pay their tax debt over time.
  • Offer in compromise: An offer in compromise is a settlement agreement between the taxpayer and the IRS, where the taxpayer pays a reduced amount to settle their tax debt.
  • Innocent spouse relief: Innocent spouse relief may be available to taxpayers who filed a joint tax return with their spouse and were unaware of errors or omissions on the return.
  • Penalty abatement: Taxpayers may be able to request penalty abatement if they can show reasonable cause for the failure to file or pay taxes on time.
  • Currently Not Collectible (CNC) status: If a taxpayer is experiencing financial hardship and cannot pay their tax debt, they may be able to request CNC status, which temporarily suspends collection activity.

Risks of Using a Tax Attorney in Colorado

Like any professional service, there are some potential risks associated with using a tax attorney in Colorado. Here are a few to consider:

  • Cost: Hiring a tax attorney can be expensive, and the cost may not always be predictable. Depending on the complexity of your tax issues, the fees for a tax attorney can quickly add up, and there is always a risk that the final bill will be higher than expected.
  • No guarantee of results: Although a tax attorney can provide guidance and representation, there is no guarantee of a favorable outcome. The IRS can be a difficult adversary, and even the most experienced tax attorney may not be able to resolve every tax issue in favor of the taxpayer.
  • Communication issues: Communication between the taxpayer and the tax attorney is critical, and if there are communication breakdowns or misunderstandings, it can negatively impact the representation and the outcome of the case.
  • Ethical issues: Like any professional, tax attorneys are held to ethical standards. There is always a risk that a tax attorney may engage in unethical or illegal behavior, such as overcharging clients or providing fraudulent advice.
  • Trust issues: It’s essential to choose a reputable tax attorney who you trust to handle your tax matters. If there is a lack of trust or confidence in your attorney, it can lead to increased stress and anxiety.

When Do You Really Need a Tax Attorney?

If you are accused of tax fraud or evasion, it is in your best interest to hire a tax attorney. A tax attorney can represent you in legal proceedings and help you navigate the complex criminal and civil penalties that may apply. If you have a complex estate, it is also recommended to hire a tax attorney. A tax attorney can provide guidance on how to minimize estate taxes and transfer assets to heirs in a tax-efficient manner.

When is a Tax Relief Company Better Than a Tax Attorney?

Tax relief companies and tax attorneys offer different services. Tax relief companies specialize in negotiating with the IRS and states on behalf of taxpayers who owe back taxes, penalties, and interest. These companies often have a team of tax professionals, including enrolled agents and tax preparers, who work to negotiate payment plans or settlements with the IRS. They may also provide assistance with preparing and filing tax returns, obtaining tax transcripts, and addressing other tax-related issues. There are situations where a tax relief company may be more beneficial than a tax attorney. Here are a few examples of  where a tax relief company may be a better option:

  • Your tax debt is under $250K: If you owe less than $250K to the IRS, a tax relief company may be a better option than a tax attorney. Tax relief companies can negotiate with the IRS to reduce or eliminate penalties and interest, and set up an affordable payment plan that works for you.
  • You need help with tax preparation: Tax relief companies often offer tax preparation services, which can be beneficial for individuals or businesses who need help filing their taxes correctly. This can help you avoid future tax problems and penalties.
  • You want to avoid the high cost of a tax attorney: Tax attorneys can be expensive, and their hourly rates can quickly add up. A tax relief company may offer more affordable options, such as a flat fee for their services.

Tax Attorney or Tax Relief Firm: Know Your Options

Benefits of Using an Experienced Tax Relief Firm

There are several benefits to using an experienced tax relief firm for your tax issues. Here are a few:

  • Expertise: Experienced tax relief firms have a deep understanding of tax laws and regulations, as well as the IRS collection process. They can provide guidance and representation based on their extensive knowledge and experience.
  • Tailored solutions: Every taxpayer’s tax situation is unique, and an experienced tax relief firm can provide tailored solutions that address your specific tax issues. They can work with you to develop a strategy that meets your needs and goals.
  • Faster resolution: Tax relief firms have the knowledge and resources to expedite the resolution of your tax issues. They can work with the IRS to negotiate a settlement or payment plan, which can help you avoid additional interest and penalties.
  • Reduced stress: Dealing with the IRS can be stressful and overwhelming, especially if you are facing a significant tax debt. An experienced tax relief firm can handle the communication and negotiation with the IRS on your behalf, which can reduce your stress and anxiety.
  • Improved outcomes: With an experienced tax relief firm, you have a better chance of achieving a favorable outcome to your tax issues. They can provide expert representation and advocacy, which can help you avoid costly mistakes and achieve the best possible resolution.

CuraDebt Tax Is At Your Service

If you are a resident of Colorado who needs help resolving tax debt issues, we are here to help. We have 22 years of experience helping clients with numerous tax related issues. Contact us toll free today for your free consultation. Or submit here online for a free consultation. We will find the best resolution available to you based on your financial situation. 1-877-999-0486

Back to top

Get A Free, No-Obligation Tax Debt Relief Consultation


Get A Free, Tax Debt Analysis