Tax Attorney Nebraska: When Do You Need To Hire One?
Hiring a tax attorney in Nebraska can provide a range of benefits for individuals and businesses facing tax-related issues. Tax attorneys in Nebraska have extensive knowledge and expertise in tax law and regulations. They can provide valuable guidance and advice on complex tax issues that may arise during audits, investigations, and litigation. A tax attorney can help individuals and businesses plan their tax strategy to minimize their tax liability and ensure compliance with tax laws.
How To Choose A Good Tax Attorney in Nebraska
Choosing a good tax attorney in Nebraska can be a daunting task, but there are several factors you can consider to make an informed decision. Here are some tips on how to choose a good tax attorney in Nebraska:
- Look for Experience: Look for a tax attorney who has experience in handling tax-related issues similar to your case. Check their track record and ask for references from past clients.
- Check Credentials: Check the attorney’s credentials, such as their education, certifications, and professional memberships. A good tax attorney should be licensed to practice law in Nebraska and have relevant certifications in tax law.
- Check Reputation: Research the attorney’s reputation in the legal community and among past clients. Look for reviews and testimonials online and ask for recommendations from colleagues and friends.
- Communication Skills: Choose a tax attorney who communicates clearly and effectively, and who is responsive to your needs. Make sure the attorney is easy to reach and promptly returns your calls and emails.
- Fees: Discuss the attorney’s fees upfront and make sure you understand the billing structure. Choose an attorney who offers a fair and transparent fee arrangement.
- Compatibility: Choose an attorney you feel comfortable working with and who understands your goals and needs. Look for an attorney who is empathetic, understanding, and who listens to your concerns.
Seeking A Tax Attorney In Your City?
Here are the five biggest cities in Nebraska by population:
- Omaha – With a population of over 478,000, Omaha is the largest city in Nebraska. It is located in the eastern part of the state, near the Missouri River.
- Lincoln – The state capital, Lincoln, has a population of around 285,000. It is located in southeastern Nebraska and is known for its historic architecture and museums.
- Bellevue – Bellevue has a population of around 57,000 and is located in eastern Nebraska, just south of Omaha. It is home to Offutt Air Force Base and is known for its parks and trails.
- Grand Island – Located in central Nebraska, Grand Island has a population of around 51,000. It is known for its agriculture and hosts the Nebraska State Fair each year.
- Kearney – With a population of around 33,000, Kearney is located in central Nebraska along the Platte River. It is home to the University of Nebraska at Kearney and is known for its museums and outdoor activities.
Common Fees For Tax Attorneys in Nebraska
Tax attorneys in Nebraska typically charge hourly rates for their services, and the fees can vary based on several factors, such as the complexity of the case, the attorney’s experience and expertise, and the location of the attorney’s office. Here are some common fees for tax attorneys in Nebraska:
- Hourly Rates: Most tax attorneys in Nebraska charge hourly rates that range from $200 to $500 or more, depending on their level of experience and the complexity of the case.
- Flat Fees: Some tax attorneys may offer flat fees for certain types of services, such as tax return preparation or tax planning. These fees may range from a few hundred to several thousand dollars, depending on the complexity of the case.
- Retainer Fees: Some tax attorneys in Nebraska may require a retainer fee upfront, which is an upfront payment to secure their services. The amount of the retainer fee may vary based on the complexity of the case and the attorney’s experience.
- Contingency Fees: In some cases, tax attorneys may work on a contingency fee basis, which means they only get paid if they win the case or secure a favorable settlement. Contingency fees may range from 20% to 40% of the amount recovered.
It is important to discuss the fee structure with your tax attorney upfront and make sure you understand the billing arrangement. Ask for an engagement letter or fee agreement that outlines the scope of the services, the fees, and the payment terms. By clarifying the fees upfront, you can avoid surprises and ensure that you can afford the services of a tax attorney.
Common Individual Tax Issues
Here are some common individual tax issues that individuals may face:
- Failure to File or Pay Taxes: Many individuals may forget to file or pay their taxes on time, which can result in penalties and interest charges.
- Tax Audits: The IRS may select individuals for tax audits to verify the accuracy of their tax returns. Tax audits can be time-consuming and stressful, especially if the individual does not have proper documentation to support their claims.
- Underpayment of Estimated Taxes: Individuals who are self-employed or have income from sources that are not subject to withholding may need to make estimated tax payments throughout the year. Failure to make these payments can result in penalties and interest charges.
- Deduction Errors: Individuals may make errors when claiming deductions, such as claiming deductions they are not eligible for or failing to claim deductions they are entitled to.
- Identity Theft: Identity theft is a growing problem, and criminals may use stolen identities to file fraudulent tax returns and obtain refunds.
- Retirement Plan Contributions: Individuals may make errors when contributing to retirement plans, such as contributing more than the annual limit or failing to take required minimum distributions after reaching age 72.
- Medical Expense Deductions: Deducting medical expenses can be complicated, and individuals may make errors when claiming these deductions, such as failing to keep proper records or deducting expenses that are not eligible.
- Taxation of Investment Income: Individuals who have investment income may face complex tax rules and may make errors when calculating the tax owed on this income.
Corporate Tax Issues
Here are some common corporate tax issues that corporations may face:
- Tax Compliance: Corporations must comply with numerous tax laws and regulations, and failure to do so can result in significant penalties and interest charges.
- Transfer Pricing: Corporations that operate in multiple jurisdictions may need to comply with transfer pricing rules, which require them to report transactions with related parties at arm’s length prices. Failure to comply with these rules can result in tax audits and penalties.
- Tax Credits: Corporations may be eligible for various tax credits, such as the research and development tax credit or the renewable energy tax credit. However, claiming these credits can be complex, and corporations may need to work with tax professionals to ensure they are claiming all eligible credits.
- State and Local Taxes: Corporations that operate in multiple states may need to comply with various state and local tax laws, including income taxes, sales taxes, and property taxes. Complying with these laws can be challenging, and corporations may need to work with tax professionals to ensure they are meeting their obligations.
- International Taxation: Corporations that operate in multiple countries may need to comply with complex international tax laws, such as transfer pricing rules, withholding taxes, and foreign tax credits. Failure to comply with these rules can result in significant penalties and interest charges.
- Depreciation and Amortization: Corporations may need to depreciate or amortize certain assets over their useful lives for tax purposes. However, determining the correct depreciation or amortization schedules can be challenging, and corporations may need to work with tax professionals to ensure they are following the correct rules.
- Corporate Reorganizations: Corporations may engage in mergers, acquisitions, or other corporate reorganizations that can have significant tax implications. Corporations may need to work with tax professionals to ensure they are structuring these transactions in the most tax-efficient manner.
Common Tax Resolutions
Here are some common tax resolutions that individuals and businesses may pursue:
- Installment Agreements: Individuals or businesses who are unable to pay their taxes in full may be able to enter into an installment agreement with the IRS. This allows them to pay their taxes over time in smaller, more manageable payments.
- Offer in Compromise: Individuals or businesses who are unable to pay their taxes in full and do not have the ability to enter into an installment agreement may be able to negotiate an offer in compromise with the IRS. This allows them to settle their tax debt for less than the full amount owed.
- Innocent Spouse Relief: Individuals who file joint tax returns with their spouse may be held liable for any tax debts or penalties owed, even if they did not know about them. Innocent spouse relief allows them to avoid liability for their spouse’s tax debts in certain circumstances.
- Penalty Abatement: Individuals or businesses who are assessed penalties by the IRS may be able to have them abated if they can demonstrate reasonable cause for their failure to comply with tax laws or regulations.
- Audit Representation: Individuals or businesses who are selected for a tax audit may benefit from the representation of a tax professional who can help them navigate the audit process and ensure that they are in compliance with all tax laws and regulations.
- Tax Planning: Individuals or businesses may benefit from proactive tax planning to minimize their tax liability and avoid potential issues in the future. This may involve working with a tax professional to identify opportunities for deductions or credits, or to structure transactions in a tax-efficient manner.
- Collection Due Process: Individuals or businesses who disagree with IRS collection actions may be able to request a collection due process hearing, which allows them to challenge the actions taken by the IRS and propose alternative solutions.
Risks of Using a Tax Attorney in Nebraska
Like any professional service, there are risks associated with using a tax attorney in Nebraska. Here are a few potential risks to be aware of:
- Cost: Hiring a tax attorney can be expensive, and the cost may not always be predictable or transparent. Some attorneys charge hourly rates, while others charge flat fees or contingency fees. It is important to discuss fees and billing arrangements with a tax attorney before engaging their services.
- No Guarantee of Results: While a tax attorney can provide advice and representation, there is no guarantee of a successful outcome in any given case. The outcome of a tax matter can depend on many factors, including the facts and evidence involved, the law and regulations, and the discretion of the IRS or other taxing authority.
- Ethical Concerns: Not all tax attorneys may be ethical or trustworthy. It is important to do your due diligence and research an attorney’s qualifications, experience, and reputation before hiring them. You can check with the Nebraska State Bar Association to confirm an attorney’s license and disciplinary history.
- Communication: Communication can be a challenge in any professional relationship, and this can be true with tax attorneys as well. It is important to establish clear lines of communication with your attorney and ensure that they are responsive to your questions and concerns.
- Potential for Audits or Investigations: Engaging a tax attorney may signal to the IRS or other taxing authority that you are being proactive about your tax compliance. This may lead to increased scrutiny or audits. While this is not necessarily a risk in itself, it is important to be aware of the potential for increased attention from tax authorities.
It is important to carefully consider these risks before engaging a tax attorney in Nebraska.
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
There are several benefits of using an experienced tax relief firm for tax-related issues. Here are a few:
- Expertise and Knowledge: An experienced tax relief firm will have a team of professionals with specialized knowledge and expertise in tax laws and regulations. They can provide guidance and advice on complex tax issues and help you navigate the often-confusing world of tax compliance.
- Representation: A tax relief firm can represent you in dealings with the IRS or other taxing authorities. They can communicate with the authorities on your behalf, negotiate settlements, and work to resolve disputes.
- Customized Solutions: Every tax situation is unique, and an experienced tax relief firm can provide customized solutions tailored to your specific circumstances. They can assess your situation, identify your options, and recommend a course of action that meets your needs and goals.
- Cost Savings: While engaging a tax relief firm does involve a cost, it can also result in significant cost savings in the long run. By resolving tax issues in a timely and effective manner, you may be able to avoid penalties, interest, and other fees that can accrue over time.
- Peace of Mind: Dealing with tax issues can be stressful and time-consuming. Working with an experienced tax relief firm can provide peace of mind, knowing that you have a team of professionals working on your behalf to resolve your tax issues and ensure compliance with tax laws.
Overall, using an experienced tax relief firm can provide numerous benefits, including expertise, representation, customized solutions, cost savings, and peace of mind. It is important to carefully consider your options and work with a reputable and qualified firm that has a proven track record of success in resolving tax-related issues.
CuraDebt Tax Is At Your Service
If you are a resident of Nebraska 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