Tax Attorney Texas: Information You Should Be Aware Of
Tax Attorney Texas: Information You Should Be Aware Of
Hiring a tax attorney in Texas can provide several benefits. Tax attorneys have specialized training and knowledge of tax laws and regulations that can be complex and difficult to navigate. They can offer guidance and advice on various tax issues, including tax planning, audits, appeals, and collections. If you are facing an audit or other tax-related legal issues, a tax attorney can represent you in court and negotiate with the Internal Revenue Service (IRS) on your behalf. A tax attorney can help you minimize your tax liability by identifying deductions, credits, and other tax-saving strategies. They can also advise you on how to structure your business to reduce tax liability.
How To Choose A Good Tax Attorney in Texas
Choosing a good tax attorney in Texas is important to ensure that you receive the best possible representation and advice. Here are some factors to consider when choosing a tax attorney:
- Experience and expertise: Look for a tax attorney who has experience dealing with the specific tax issue you are facing. They should have knowledge of the tax laws and regulations relevant to your case.
- Credentials: Check the attorney’s credentials, including their education, licenses, and certifications. You may also want to look for an attorney who is a member of professional organizations, such as the American Bar Association or the Texas State Bar Association.
- Reputation: Read reviews and testimonials from previous clients to get an idea of the attorney’s reputation. You can also check with the State Bar of Texas to see if there have been any complaints or disciplinary actions against the attorney.
- Communication: Choose an attorney who communicates clearly and regularly with you. They should be able to explain complex tax issues in terms that you can understand.
- Fees: Ask about the attorney’s fees upfront, including how they bill and what their hourly rate is. You may also want to ask about any additional costs, such as court fees or expert witness fees.
- Compatibility: It’s important to choose an attorney that you feel comfortable working with and who understands your goals and concerns. Schedule an initial consultation to get a sense of the attorney’s communication style and approach to your case.
Seeking A Tax Attorney In Your City?
Here are the ten biggest cities in Texas, based on population according to the U.S. Census Bureau as of 2020:
- Houston – 2,316,932
- San Antonio – 1,486,101
- Dallas – 1,343,573
- Austin – 1,081,030
- Fort Worth – 927,720
- El Paso – 683,047
- Arlington – 394,942
- Corpus Christi – 327,634
- Plano – 287,677
- Laredo – 272,148
It’s worth noting that there are many other large and vibrant cities in Texas, such as Lubbock, Garland, Irving, and Amarillo, among others.
Common Fees For Tax Attorneys in Texas
The fees for tax attorneys in Texas can vary depending on several factors, including the complexity of the case, the attorney’s level of experience, and the amount of time spent on the case. Here are some common fee structures for tax attorneys in Texas:
- Hourly rate: Many tax attorneys charge an hourly rate for their services, which can range from $200 to $500 per hour or more, depending on their level of experience and the complexity of the case.
- Flat fee: In some cases, tax attorneys may charge a flat fee for specific services, such as tax return preparation or a tax audit defense.
- Contingency fee: In certain cases, such as tax litigation, tax attorneys may work on a contingency fee basis. This means that they only get paid if they win the case, typically taking a percentage of the amount recovered.
- Retainer fee: Tax attorneys may require a retainer fee upfront, which is a pre-payment for their services. The retainer fee is usually based on an estimate of the total cost of the case and may be refundable if the attorney does not use all of the funds.
It’s important to discuss fees and billing practices with your tax attorney upfront, so you have a clear understanding of what to expect. Be sure to ask for a written fee agreement that outlines the scope of services and the fee structure.
Common Individual Tax Issues
Individuals may face a variety of tax issues related to their personal finances and tax obligations. Here are some common individual tax issues:
- Failure to file or pay taxes: If an individual fails to file their tax return or pay their taxes on time, they may face penalties and interest charges. It’s important to file your taxes on time and pay any taxes owed to avoid these consequences.
- Incorrect or incomplete tax returns: Filing an incorrect or incomplete tax return can result in penalties and additional taxes owed. It’s important to ensure that your tax return is accurate and complete to avoid these issues.
- Tax audit: The IRS may audit an individual’s tax return to verify the accuracy of the information reported. If you are audited, it’s important to respond promptly and provide any requested documentation.
- Unpaid taxes: If an individual owes taxes and cannot pay the full amount owed, they may be able to set up a payment plan with the IRS to pay the taxes over time.
- Tax identity theft: Tax identity theft occurs when someone uses an individual’s personal information to file a fraudulent tax return and claim a refund. It’s important to take steps to protect your personal information, such as using strong passwords and avoiding phishing scams.
- Estate tax issues: If an individual has a large estate, they may face estate tax issues upon their death. It’s important to work with an estate planning attorney to develop a plan to minimize estate taxes and ensure that your assets are distributed according to your wishes.
Corporate Tax Issues
Corporate tax issues can be complex and varied, depending on the size and nature of the corporation. Here are some common corporate tax issues:
- Tax compliance: Corporations must comply with federal, state, and local tax laws and regulations. This includes filing tax returns, paying taxes, and maintaining accurate records.
- Transfer pricing: Transfer pricing refers to the pricing of goods and services between related parties, such as a parent company and its subsidiaries. The IRS closely scrutinizes transfer pricing to ensure that it reflects fair market value and does not result in tax avoidance.
- State tax issues: Corporations may face state tax issues related to income tax, sales tax, and property tax. These issues can be particularly complex for corporations that operate in multiple states.
- Research and development (R&D) tax credits: Corporations that invest in research and development may be eligible for R&D tax credits, which can offset some of the costs of R&D activities.
- Employee benefits: Corporations may offer a variety of employee benefits, such as health insurance and retirement plans. These benefits may have tax implications, such as income tax withholding and reporting requirements.
- International tax issues: Corporations that operate globally may face international tax issues related to transfer pricing, foreign tax credits, and compliance with foreign tax laws.
- Tax reform: Changes in tax laws and regulations, such as the Tax Cuts and Jobs Act of 2017, can have significant impacts on corporate taxes. Corporations must stay up-to-date on tax reform and adjust their tax strategies accordingly.
Common Tax Resolutions
Tax resolutions are agreements between taxpayers and the IRS to resolve tax issues. Here are some common tax resolutions:
- 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 bill upfront.
- Offer in compromise: An offer in compromise is an agreement between the taxpayer and the IRS to settle the tax debt for less than the full amount owed. This is typically only an option if the taxpayer cannot pay the full tax bill and has no other assets to use to pay the debt.
- Currently not collectible: If a taxpayer is unable to pay their tax debt due to financial hardship, the IRS may place the account in a currently not collectible status. This means that the IRS will not actively pursue collection of the debt but will continue to accrue interest and penalties.
- Penalty abatement: The IRS may waive certain penalties if the taxpayer has a reasonable cause for not complying with tax laws, such as a serious illness or natural disaster.
- Innocent spouse relief: If a taxpayer’s spouse made mistakes on their tax return or engaged in tax fraud, innocent spouse relief may be an option to avoid liability for the spouse’s actions.
- Audit reconsideration: If a taxpayer disagrees with the results of an IRS audit, they may request an audit reconsideration to have the audit findings reviewed.
- Collection due process: Taxpayers have the right to appeal IRS collection actions, such as a tax lien or levy, through a collection due process hearing.
Risks of Using a Tax Attorney in Texas
While using a tax attorney in Texas can be beneficial in many ways, there are also some potential risks to consider:
- Cost: Tax attorneys can be expensive, and their fees may not be covered by insurance. Clients should carefully consider the costs and potential benefits of hiring a tax attorney before making a decision.
- No guarantees: While a tax attorney can provide legal advice and represent clients in tax matters, there are no guarantees that the outcome will be favorable. The IRS has broad powers to enforce tax laws, and there may be limits to what a tax attorney can do to help a client.
- Lack of transparency: Some tax attorneys may not be fully transparent about their fees or the potential outcomes of a tax case. It’s important for clients to ask questions and make sure they fully understand the terms of the attorney-client agreement before signing.
- Communication issues: Clients may experience communication issues if they hire a tax attorney who is difficult to reach or does not respond promptly to inquiries. This can lead to frustration and may hinder the progress of the tax case.
- Ethical concerns: While most tax attorneys are ethical and professional, there are some who engage in unethical or illegal behavior, such as providing false information to the IRS or engaging in conflicts of interest. Clients should do their due diligence and make sure they are hiring a reputable and ethical tax attorney.
When Do You Really Need a Tax Attorney?
If you are accused of tax fraud or evasion, it is beneficial 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 has knowledge and 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 potential benefits of using an experienced tax relief firm:
- Knowledge and expertise: An experienced tax relief firm will have a deep understanding of tax laws, regulations, and procedures, as well as the skills and experience necessary to navigate complex tax issues.
- Better outcomes: An experienced tax relief firm may be able to achieve better outcomes for their clients, such as reducing tax liabilities, negotiating settlements with the IRS, or securing tax relief options like installment agreements or offers in compromise.
- Reduced stress: Dealing with tax issues can be stressful and time-consuming. An experienced tax relief firm can handle the process on behalf of their clients, reducing stress and freeing up time for other priorities.
- Representation: A tax relief firm can represent their clients before the IRS, providing legal and strategic guidance during audits, appeals, or other tax-related proceedings.
- Tailored solutions: An experienced tax relief firm will be able to assess each client’s unique tax situation and provide tailored solutions to meet their specific needs and goals.
- Reduced risk of errors: Tax relief firms are staffed by experienced professionals who are well-versed in tax law and have extensive experience in dealing with the IRS. This can help to reduce the risk of errors or oversights that could result in additional tax liabilities or penalties.
CuraDebt Tax Is At Your Service
If you are a resident of Texas 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