Tax Attorney Maryland: Is It The Best Solution For You?
Tax Attorney Maryland: Is It The Best Solution For You?
Hiring a tax attorney in Maryland can provide a range of benefits. A tax attorney has specialized knowledge and training in tax law and can provide expert advice on complex tax issues and can help you navigate the IRS and protect you from penalties or legal action. A tax attorney can help you develop a tax planning and strategy that can save you money and minimize your tax liability. They can represent you in court if you are facing a tax dispute or litigation. A tax attorney can act as a liaison between you and the IRS, ensuring that all communication is handled professionally and effectively.
How To Choose A Good Tax Attorney in Maryland
Choosing a good tax attorney in Maryland can be a challenging task, but there are a few key factors to consider when making your decision. Here are some tips to help you choose a good tax attorney:
- Look for a licensed attorney: Make sure that the attorney you are considering is licensed to practice law in Maryland and has a good standing with the state bar association.
- Check for experience: Look for an attorney who has experience in tax law and has handled cases similar to yours. A good tax attorney should have a solid understanding of federal and state tax laws, regulations, and procedures.
- Consider the attorney’s reputation: Research the attorney’s reputation by reading online reviews, asking for referrals, and checking with local organizations such as the Better Business Bureau.
- Evaluate communication skills: Look for an attorney who has strong communication skills and can explain complex tax issues in a way that you can understand.
- Review fees and billing practices: Ask about the attorney’s fees and billing practices upfront, including how they charge for their services and whether they offer any payment plans.
- Schedule a consultation: Finally, schedule a consultation with the attorney to discuss your tax issues and get a sense of their approach and expertise. This is also an opportunity to assess whether you feel comfortable working with the attorney and whether you think they can effectively represent your interests.
Seeking A Tax Attorney In Your City?
Here are the five largest cities in Maryland by population:
- Baltimore – With a population of over 590,000 people, Baltimore is the largest city in Maryland and the 30th largest city in the United States.
- Columbia – Located in Howard County, Columbia has a population of over 100,000 people.
- Germantown – Located in Montgomery County, Germantown has a population of over 90,000 people.
- Silver Spring – Located in Montgomery County, Silver Spring has a population of over 80,000 people.
- Waldorf – Located in Charles County, Waldorf has a population of over 70,000 people.
Common Fees For Tax Attorneys in Maryland
The fees for tax attorneys in Maryland can vary depending on a number of factors, including the complexity of the case, the attorney’s experience and reputation, and the geographic location. Some common fee structures for tax attorneys in Maryland include:
- Hourly rates: Many tax attorneys charge an hourly rate for their services, which can range from around $200 to $500 per hour, or even higher for highly experienced attorneys.
- Flat fees: Some tax attorneys may offer a flat fee for specific services, such as preparing tax returns or filing an appeal.
- Contingency fees: In some cases, a tax attorney may work on a contingency fee basis, meaning that they will only receive payment if they are successful in resolving your case.
- Retainer fees: A tax attorney may also require a retainer fee, which is an upfront payment to secure their services and ensure that they will be available to work on your case.
Common Individual Tax Issues
Here are some common individual tax issues that people may encounter:
- Filing late or failing to file: Failing to file a tax return or filing late can result in penalties and interest charges.
- Underpayment of taxes: If you did not pay enough taxes throughout the year, you may owe the IRS a penalty and interest on the underpayment.
- Incorrect deductions: Claiming deductions that you are not entitled to can result in penalties and interest charges.
- Tax fraud or evasion: Intentionally failing to report income or claiming false deductions can result in serious penalties, fines, and even criminal charges.
- Identity theft: Tax-related identity theft occurs when someone uses your Social Security number to file a fraudulent tax return and claim a refund.
- Audit or examination: If the IRS selects your return for audit or examination, you will need to provide additional documentation and may be subject to penalties and interest charges if discrepancies are found.
- Inheritance or gift tax issues: If you inherit property or receive a large gift, you may be subject to inheritance or gift tax, which can be complex and require the assistance of a tax professional.
Corporate Tax Issues
Here are some common corporate tax issues that businesses may encounter:
- Failure to file or pay taxes on time: Late filings or payments can result in penalties and interest charges.
- Improper classification of workers: Misclassifying workers as independent contractors instead of employees can result in tax issues and penalties.
- Accounting errors: Accounting errors, including improper record-keeping or incorrect deductions, can result in tax liabilities and penalties.
- Transfer pricing issues: If your business operates internationally, transfer pricing issues can arise if there are discrepancies in pricing for goods or services transferred between related companies.
- State and local tax issues: Different states and municipalities have their own tax laws and regulations that businesses must comply with.
- Sales tax issues: Sales tax laws and regulations can be complex and businesses must ensure they are collecting and remitting sales tax properly.
- Tax audits: If a business is selected for an audit by the IRS or state tax authority, they may need to provide additional documentation and may be subject to penalties and interest charges if discrepancies are found.
Common Tax Resolutions
Here are some common tax resolutions that individuals and businesses may pursue:
- Installment agreement: An installment agreement allows taxpayers to pay their tax debt over time in regular installments. This can be a good option for those who cannot pay their tax debt in full upfront.
- Offer in compromise: An offer in compromise is an agreement between the taxpayer and the IRS to settle tax debt for less than the full amount owed. This option is usually only available to those who cannot pay their tax debt in full and have no other options.
- Penalty abatement: Penalty abatement allows taxpayers to request relief from certain penalties, such as late filing or payment penalties, if they have reasonable cause for the delay.
- Innocent spouse relief: Innocent spouse relief is available to those who filed a joint tax return with their spouse and were not aware of errors or omissions on the return.
- Currently not collectible status: If a taxpayer is unable to pay their tax debt due to financial hardship, they may be able to request currently not collectible status, which temporarily suspends collection actions by the IRS.
- Audit reconsideration: If a taxpayer disagrees with the results of an audit, they may be able to request audit reconsideration, which allows them to present additional information or evidence to the IRS.
Risks of Using a Tax Attorney in Maryland
While there can be many benefits to working with a tax attorney in Maryland, there are also some risks to be aware of. Here are a few potential risks:
- Cost: Hiring a tax attorney can be expensive, especially if your case is complex and requires a significant amount of time and effort.
- No guarantees: There is no guarantee that working with a tax attorney will result in a positive outcome. While they can provide guidance and representation, the final decision rests with the IRS or state tax authority.
- Ethical concerns: Not all tax attorneys may act in the best interest of their clients, and some may engage in unethical or illegal behavior. It’s important to research and choose a reputable and trustworthy attorney.
- No protection from criminal charges: A tax attorney can assist with civil tax issues, but they cannot protect you from criminal charges if you have willfully evaded taxes or committed tax fraud.
- Complexity: Tax laws and regulations can be complex and constantly changing. It can be difficult to keep up with all the changes and ensure compliance with tax laws, even with the assistance of a tax attorney.
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.
Benefits of Using an Experienced Tax Relief Firm
Here are some benefits of using an experienced tax relief firm for tax resolution:
- Expertise: An experienced tax relief firm will have a team of tax professionals who are knowledgeable about tax laws and regulations and have experience dealing with the IRS and state tax authorities. This can provide you with expert guidance and representation.
- Time-saving: Handling tax issues can be time-consuming, especially if you are not familiar with the process. An experienced tax relief firm can handle the paperwork and negotiations on your behalf, saving you time and stress.
- Increased likelihood of a positive outcome: Tax relief firms have experience working with the IRS and state tax authorities, and they understand the best strategies for negotiating tax debt and resolving tax issues. This can increase the likelihood of a positive outcome, such as a reduction in tax debt or a payment plan that fits your budget.
- Protection from harassment: If you owe back taxes, you may be receiving phone calls and letters from the IRS or state tax authorities. An experienced tax relief firm can act as an intermediary, protecting you from harassment and providing a buffer between you and the tax authorities.
- Cost-effective: While hiring a tax relief firm does come with a cost, it can be a cost-effective solution in the long run if it results in a reduction of tax debt or penalties. Additionally, many tax relief firms offer payment plans and financing options to make their services more affordable.
CuraDebt Tax Is At Your Service
If you are a resident of Maryland 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