Tax Attorney New Mexico: Facts You Should Know

Tax Attorney New Mexico: Facts You Should Know

Tax attorneys are trained to understand the intricacies of tax law and can provide you with expert advice on a range of tax-related issues. If you are facing a tax dispute with the IRS, a tax attorney can represent you in court and negotiate with the IRS on your behalf. A tax attorney can assist you with tax planning, ensuring that you take advantage of all available tax deductions and credits, and help you minimize your tax liability. If you are facing an IRS audit, a tax attorney can represent you during the audit process and help ensure that your rights are protected.

How To Choose A Good Tax Attorney in New Mexico

Choosing a good tax attorney in New Mexico is essential to ensure that you receive quality legal representation and advice. Here are some tips to help you choose a good tax attorney:

  • Look for experience: Look for a tax attorney who has experience handling cases similar to yours. Ask about their track record of success in resolving tax issues, particularly with the IRS.
  • Check their credentials: Verify the attorney’s credentials and ensure they are licensed to practice law in New Mexico. You can check with the State Bar of New Mexico to ensure the attorney is in good standing.
  • Ask for referrals: Ask friends, family, or business associates for referrals to tax attorneys they have used or know.
  • Evaluate communication skills: Choose a tax attorney who is easy to communicate with and can explain complex tax matters in a way you can understand. Communication is critical to ensure that you receive the best legal advice and representation.
  • Consider fees: Choose a tax attorney who is upfront about their fees and who offers a reasonable fee structure. Some attorneys charge hourly rates, while others may offer a flat fee for specific services.

Seeking A Tax Attorney In Your City?

The five biggest cities in New Mexico, based on population, are:

  1. Albuquerque – Population: 564,000
  2. Las Cruces – Population: 101,000
  3. Rio Rancho – Population: 100,000
  4. Santa Fe – Population: 85,000
  5. Roswell – Population: 48,000

Common Fees For Tax Attorneys in New Mexico

The fees charged by tax attorneys in New Mexico can vary depending on several factors, such as the complexity of the case, the amount of time required to resolve the matter, and the attorney’s level of experience. Here are some common fee structures used by tax attorneys in New Mexico:

  • Hourly rates: Tax attorneys may charge an hourly rate for their services. Hourly rates can range from $200 to $500 per hour or more, depending on the attorney’s experience and the complexity of the case.
  • Flat fees: Some tax attorneys may offer a flat fee for specific services, such as tax preparation or audit defense. Flat fees can range from a few hundred dollars to several thousand dollars, depending on the scope of the work.
  • Contingency fees: In some cases, tax attorneys may work on a contingency fee basis. This means that the attorney’s fee is based on a percentage of the amount of money recovered on your behalf. However, contingency fees are less common in tax-related matters.

It’s important to discuss fees and fee structures with your tax attorney before hiring them to ensure that you understand their billing practices and can budget accordingly. Additionally, you may want to discuss whether there are any potential additional costs, such as filing fees or expert witness fees, that may be associated with your case.

Common Individual Tax Issues

There are several common individual tax issues that taxpayers may encounter when filing their taxes. Some of these issues include:

  • Filing errors: Filing errors can include incorrect or missing information on tax returns, failing to report income or deductions, and miscalculating tax liabilities.
  • Late or non-filing: Failing to file a tax return or filing after the deadline can result in penalties and interest charges.
  • Underpayment of taxes: If a taxpayer does not pay enough tax throughout the year or did not withhold enough tax from their paycheck, they may owe taxes when they file their return.
  • Audit or examination: The IRS may select a taxpayer’s return for an audit or examination, which can result in additional taxes, penalties, and interest charges.
  • Identity theft: Taxpayer identity theft occurs when someone uses another person’s Social Security number to file a tax return and claim a fraudulent refund.
  • Failure to report foreign assets or income: Taxpayers who have foreign financial accounts or assets may be required to report them on their tax return and may face penalties for failing to do so.

Corporate Tax Issues

Corporate tax issues can be complex, and failure to comply with tax laws and regulations can result in significant financial and legal consequences for businesses. Some common corporate tax issues include:

  • Underpayment or late payment of taxes: Corporations may be subject to penalties and interest charges if they do not pay the correct amount of tax or fail to pay on time.
  • Failure to file tax returns: Corporations may be required to file various tax returns, such as income tax returns, payroll tax returns, and sales tax returns. Failing to file these returns can result in significant penalties and interest charges.
  • Misclassification of workers: Classifying workers as independent contractors instead of employees can result in penalties for failure to withhold payroll taxes and other employment-related taxes.
  • Transfer pricing issues: Corporations that have international operations may face transfer pricing issues when pricing goods and services transferred between their foreign and domestic subsidiaries.
  • Tax credits and deductions: Corporations may be eligible for various tax credits and deductions, such as research and development credits or deductions for capital expenditures. However, failure to properly document these credits and deductions can result in the IRS disallowing them.
  • Tax audits: The IRS may select a corporation’s tax return for audit, which can be a time-consuming and costly process.

Common Tax Resolutions

When taxpayers are unable to pay their full tax debt, they may seek a tax resolution with the IRS. Some common tax resolutions include:

  • Installment agreement: An installment agreement allows taxpayers to pay their tax debt over time in monthly installments. This can be a good option for taxpayers who cannot pay their full tax debt upfront but can afford to make regular payments.
  • Offer in compromise: An offer in compromise allows taxpayers to settle their tax debt for less than the full amount owed. This can be a good option for taxpayers who cannot afford to pay their full tax debt and have no other means of paying.
  • Currently not collectible status: Currently not collectible status allows taxpayers to temporarily suspend their tax debt collection while they are experiencing financial hardship. However, interest and penalties may continue to accrue on the tax debt.
  • Innocent spouse relief: Innocent spouse relief is a form of tax relief for taxpayers who were not aware of their spouse’s tax errors or omissions and should not be held liable for their spouse’s tax debt.
  • Hardship relief: Hardship relief allows taxpayers to request relief from tax debt if they are experiencing significant financial hardship.

Risks of Using a Tax Attorney in New Mexico

There are some potential risks associated with using a tax attorney in New Mexico, although these risks can be mitigated with proper research and due diligence. Some possible risks include:

  • High fees: Tax attorneys may charge high fees for their services, and these fees can vary widely depending on the complexity of the case and the attorney’s level of experience. It’s important to discuss fees upfront and ensure that they are reasonable and transparent.
  • Unethical practices: Some tax attorneys may engage in unethical or illegal practices, such as overcharging clients, misrepresenting their qualifications, or engaging in fraudulent activity. It’s essential to research the attorney’s background and credentials and check for any disciplinary actions or complaints.
  • Inexperience or incompetence: Inexperienced or incompetent tax attorneys may not have the necessary knowledge or skills to handle complex tax issues effectively, which could result in additional tax liabilities, penalties, or legal issues.
  • Miscommunication or lack of communication: Poor communication between the tax attorney and the client can lead to misunderstandings, delays, and mistakes. It’s essential to establish clear lines of communication and expectations upfront and ensure that the attorney provides regular updates on the case’s progress.

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

Using an experienced tax relief firm can provide several benefits for taxpayers facing tax issues. Some of the benefits include:

  • Knowledge and expertise: Experienced tax relief firms have a deep understanding of tax laws and regulations and can provide valuable guidance and support in navigating complex tax issues. They can also help taxpayers understand their rights and responsibilities and identify potential tax relief options.
  • Reduced stress and anxiety: Tax issues can be stressful and overwhelming, especially for those who lack the knowledge and experience to navigate them. An experienced tax relief firm can provide peace of mind by handling the tax issues and communicating with the IRS on behalf of the taxpayer.
  • Increased likelihood of successful resolution: Experienced tax relief firms have a track record of successfully resolving tax issues for their clients. They can negotiate with the IRS to reduce or eliminate tax liabilities, penalties, and interest charges, and help taxpayers get back on track with their tax obligations.
  • Save time and money: Attempting to handle tax issues alone can be time-consuming and costly, especially if mistakes are made or the wrong approach is taken. An experienced tax relief firm can streamline the process, identify potential cost-saving options, and help taxpayers avoid costly penalties and interest charges.
  • Protection from IRS harassment and intimidation: The IRS has broad powers to collect taxes, and taxpayers who owe taxes can face aggressive collection efforts, including wage garnishments and liens. An experienced tax relief firm can protect taxpayers from harassment and intimidation by the IRS and ensure that their rights are protected.

CuraDebt Tax Is At Your Service

If you are a resident of New Mexico 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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