Tax Attorney Louisiana: When Should You Hire One?

Tax Attorney Louisiana: When Should You Hire One?

Hiring a tax attorney in Louisiana can bring several benefits. Tax attorneys specialize in tax law and have a deep understanding of federal and state tax codes, regulations, and procedures. They can provide expert guidance on complex tax issues, including tax planning, audits, appeals, and litigation. Tax attorneys can help individuals and businesses minimize their tax liability by identifying tax deductions, credits, and other tax-saving strategies. They can also help clients negotiate with the IRS or state tax authorities to resolve tax disputes. If a tax dispute cannot be resolved through negotiation, a tax attorney can represent clients in court. They can present legal arguments, challenge evidence, and negotiate settlements to protect their clients’ interests.

How To Choose A Good Tax Attorney in Louisiana

Choosing a good tax attorney in Louisiana can be a daunting task, but here are some tips to help you make an informed decision:

  • Look for experience: Look for an attorney who specializes in tax law and has years of experience handling tax-related cases. An experienced tax attorney will be familiar with the tax laws and regulations specific to Louisiana and can provide expert advice tailored to your specific needs.
  • Check their qualifications: Ensure that the tax attorney you choose is licensed to practice law in Louisiana and is in good standing with the state bar association. Check their educational background, certifications, and any other relevant credentials.
  • Ask for referrals: Ask for referrals from other professionals, such as accountants, financial advisors, or other attorneys, who work in the same field. They may be able to recommend a reputable tax attorney based on their experience.
  • Schedule a consultation: Schedule a consultation with the tax attorney to discuss your specific tax issue and assess their communication skills, knowledge, and expertise. A good attorney should be able to explain complex tax issues in simple terms and provide you with clear and concise advice.
  • Consider the cost: Determine the attorney’s fee structure and how they bill for their services. Some attorneys charge hourly rates, while others charge a flat fee for specific services. Make sure you understand how the attorney bills and the costs associated with their services before engaging their services.
  • Trust your instincts: Trust your instincts and choose an attorney you feel comfortable working with and who you believe has your best interests at heart. A good attorney should be responsive, trustworthy, and professional in their dealings with you.

Seeking A Tax Attorney In Your City?

Here are the five biggest cities in Louisiana by population, according to the latest U.S. Census Bureau estimates:

  1. New Orleans – Population: 390,144 (2020 estimate)
  2. Baton Rouge – Population: 220,236 (2020 estimate)
  3. Shreveport – Population: 181,656 (2020 estimate)
  4. Lafayette – Population: 126,848 (2020 estimate)
  5. Lake Charles – Population: 75,321 (2020 estimate)

Note that these figures are estimates and may be subject to change.

Common Fees For Tax Attorneys in Louisiana

The fees for tax attorneys in Louisiana can vary depending on several factors, including the complexity of the case, the attorney’s experience and qualifications, and the location of their practice. Here are some common fee structures for tax attorneys in Louisiana:

  • Hourly rate: Many tax attorneys charge an hourly rate for their services. The hourly rate can range from $200 to $500 or more, depending on the attorney’s experience and qualifications.
  • Flat fee: Some tax attorneys charge a flat fee for specific services, such as tax preparation, tax planning, or IRS audit representation. The flat fee can range from a few hundred dollars to several thousand dollars, depending on the nature and complexity of the case.
  • Contingency fee: In some cases, tax attorneys may work on a contingency fee basis, where they only get paid if they are successful in resolving the tax issue. The contingency fee is usually a percentage of the amount of money saved or recovered by the client.
  • Retainer fee: Some tax attorneys may require a retainer fee upfront, which is a deposit to secure their services. The retainer fee can range from a few thousand dollars to tens of thousands of dollars, depending on the nature and complexity of the case.

It’s essential to discuss the fee structure with your tax attorney before engaging their services to ensure that you understand the costs and are comfortable with the arrangement.

Common Individual Tax Issues

Here are some common individual tax issues that individuals may face:

  • Failure to file tax returns: Failure to file tax returns or filing late can result in penalties and interest charges.
  • Underpayment of taxes: Individuals who underpay their taxes may also face penalties and interest charges.
  • Tax debt: Individuals who owe back taxes or have tax debt may face collection actions, such as wage garnishments or liens on their property.
  • Tax audits: Individuals may be selected for an IRS audit, which can be stressful and time-consuming.
  • Tax fraud or evasion: Deliberately failing to report income or claiming false deductions can result in serious consequences, including fines, penalties, and even criminal charges.
  • Innocent spouse relief: Spouses who were not aware of their partner’s tax fraud or errors on tax returns may be eligible for innocent spouse relief.
  • Identity theft: Taxpayers may become victims of identity theft, where someone else uses their personal information to file a fraudulent tax return or claim a refund.

Corporate Tax Issues

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

  • Tax compliance: Businesses must comply with federal, state, and local tax laws, which can be complex and confusing.
  • Entity classification: Choosing the right entity structure for your business can have significant tax implications, and businesses need to ensure that they are classified correctly.
  • Tax audits: The IRS may select a business for an audit to ensure compliance with tax laws and regulations.
  • Tax credits and deductions: Businesses may be eligible for various tax credits and deductions, but understanding and maximizing these benefits can be challenging.
  • Payroll taxes: Businesses must withhold and pay payroll taxes on behalf of their employees, and failure to do so can result in penalties and interest charges.
  • Sales tax: Businesses that sell goods or services may be required to collect and remit sales tax to the state or local government.
  • International tax issues: Businesses that operate internationally may face complex tax issues, including transfer pricing, foreign tax credits, and compliance with foreign tax laws.

Common Tax Resolutions

Here are some common tax resolutions that individuals and businesses may pursue to resolve their tax issues:

  • Installment agreement: Taxpayers who are unable to pay their tax debt in full may be able to negotiate a payment plan with the IRS or state tax agency.
  • Offer in compromise: Taxpayers who cannot afford to pay their tax debt in full may be able to settle for less than the amount owed through an offer in compromise.
  • Penalty abatement: Taxpayers who are facing penalties may be able to have them reduced or eliminated through penalty abatement.
  • Innocent spouse relief: Spouses who were not aware of their partner’s tax fraud or errors on tax returns may be eligible for innocent spouse relief.
  • Currently Not Collectible (CNC) status: Taxpayers who are experiencing financial hardship may be able to have their tax debt temporarily suspended through CNC status.
  • Audit representation: Taxpayers who are selected for an IRS audit may benefit from the representation of a qualified tax professional who can help them navigate the process.
  • Tax litigation: Taxpayers who disagree with a tax assessment may be able to pursue tax litigation, such as filing a petition in tax court.

Risks of Using a Tax Attorney in Louisiana

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

  • Cost: Tax attorneys can be expensive, and their fees may vary widely based on their level of experience and expertise.
  • No guarantee of success: Hiring a tax attorney does not guarantee that your tax issues will be resolved in your favor. The outcome of your case may depend on various factors, including the strength of the evidence and the interpretation of tax laws and regulations.
  • Potential conflicts of interest: Tax attorneys may represent clients with conflicting interests, such as representing both the taxpayer and a related party. In such cases, the attorney must disclose the potential conflict of interest and obtain the client’s informed consent.
  • Limited availability: Tax attorneys may have limited availability due to their caseload or other commitments, which could delay the resolution of your tax issues.
  • Ethical violations: Like all attorneys, tax attorneys are subject to ethical rules and regulations. Violations of these rules could result in disciplinary action or even disbarment.

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 potential benefits of using an experienced tax relief firm to help resolve your tax issues. Here are a few to consider:

  • Expertise: An experienced tax relief firm can offer a wealth of knowledge and expertise in tax laws, regulations, and procedures. They can help you navigate complex tax issues and provide guidance on the best course of action for your specific situation.
  • Negotiation skills: Tax relief firms often have experienced negotiators who can work with the IRS or state tax agency on your behalf to resolve your tax issues. They may be able to negotiate reduced penalties, interest, or even a lower overall tax debt.
  • Faster resolution: Tax relief firms may be able to resolve your tax issues more quickly than if you were to handle them on your own. They can dedicate more time and resources to your case and may have established relationships with the tax authorities that can expedite the resolution process.
  • Reduced stress: Dealing with tax issues can be stressful and overwhelming, especially if you’re not familiar with the tax laws and procedures. An experienced tax relief firm can handle the process for you, reducing your stress and giving you peace of mind.
  • Cost savings: While tax relief firms may charge fees for their services, they may ultimately save you money in the long run by helping you negotiate a lower tax debt or avoid costly penalties and interest charges.

CuraDebt Tax Is At Your Service

If you are a resident of Louisiana 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

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