Many people wonder, “What is the Role of Tax Lawyers?” The IRS has a fairly specific view of the role of tax attorneys, and it is unclear whether they play an equal or adversarial role with their clients. Interestingly, the ABA Committee on Ethics and Professional Responsibility, which is composed of a variety of legal experts, has never issued a formal ethical code for tax lawyers. Until 1978, the IRS viewed lawyers as adversaries.
But the ABA and the NYSBA argued that regulations of attorneys would not have a material effect on the level of tax shelter activity. In fact, Sax identified taxpayer incentives as the “essence” of the problem, and the ABA and NYSBA questioned whether regulation of attorneys would be effective. The ABA and the NYSBA have since issued statements questioning the suitability of such regulations. However, their response has since been overruled.
In addition to helping you file your taxes, tax attorneys represent companies and businesses in tax litigation. They represent companies and businesses, including big corporations, small businesses, and pass-through entities. They also represent the interests of partnerships and S corporations, which generally enjoy tax-exempt status, but have different treatment from pass-through entities. These attorneys also provide specialized advice on corporation structure and tax code provisions. If you have a question about the role of a tax attorney in a tax case, a qualified attorney is essential.
When filing for a tax appeal, tax attorneys work with the IRS to determine if there are any possible ways to get a lower tax bill. In some cases, adjusting deductions will be required. The attorney will file the necessary proof to show that deductions are legitimate and appropriate. Once the lawyer has determined that the amount of the tax is unaffordable, the tax attorney will negotiate with the IRS on your behalf, if necessary. However, negotiations with the IRS are not always successful.
A tax attorney’s expertise is important to minimizing criminal prosecution. Tax defense lawyers are skilled in the citation of Code sections and Regulations to support a taxpayer’s tax claim. An effective tax defense letter cites Regulations and Code sections, and cites relevant Code sections. Tax attorneys are trained to identify issues in a taxpayer’s claim and review revenue agents’ reports. The tax defense letter must address any new issues brought forward by a third party and outline state jurisdictional defenses and setoffs.
The role of a tax lawyer is twofold: advocate and adviser. An advocate serves as the client’s advocate and adviser, while an adviser aims to provide a professional opinion on a client’s case. The advocate acts as a neutral third party, advising the client and resolving any questions regarding the bounds of the law. The adviser is responsible for giving a professional opinion regarding a client’s final decision.
Oftentimes, a taxpayer hires a tax attorney to negotiate a tax settlement. Tax attorneys can help clients get a tax refund, negotiate a reasonable payment schedule, and protect their credit ratings. No matter what type of tax problem, a tax attorney is a valuable asset. If you are dealing with an IRS investigation, a tax lawyer can help you save your credit rating, avoid jail time, and keep you out of court.