Role of a Tax Attorney

The Congress set up an income tax system in 1913 that remains in effect in the United States today, despite numerous revisions. Personal income tax that is applicable to natural persons and trusts and corporate income tax that is payable by corporations are both part of this system. Individuals must pay income tax on taxable income from all sources across the globe, but the Revenue Act of 1921 provides special treatment to long-term capital gains. Earned incomes has been taxed at preferential rates at different times. Under existing tax law, corporations are taxes usually taxed as separate entities while shareholders pay individual income tax on the dividends they receive. Unincorporated businesses are generally not taxed. Instead the owners of such businesses pay individual income tax on the profits. They must pay tax on the profit even if they do not withdraw the profit from the business.
Tax law deals with the legal requirements for paying taxes to the federal government and state governments. The laws dealing with tax are complex. Federal law governs federal taxes while state law governs state taxes. The federal government collects Social Security taxes, Medicare taxes, income taxes, gift taxes and much more. Besides state income taxes and state sales taxes, states also collect many other taxes. Law firms that handle tax matters are called taxation law firms or tax law firms. A tax lawyer interprets and advises on issues of tax law. A person can easily commit mistakes because he or she has to keep track of many taxes including payroll tax, employment tax, income tax and state sales tax. A tax lawyer can help you avoid detrimental mistakes.
A tax attorney can assist you avoid known traps or to get you out of ones that you may have fallen into. A tax attorney can help you avoid tax vagaries and other levies . As tax law firms have expertise in the processes involved, they may be able to procure a reduction in tax money owed or to eliminate it altogether. Sometimes, tax lawyers work together with accountants to advise clients on the best ways to solve their tax problems, or carry out tax planning. Tax law firms have the skills required to interpret tax laws be it based on statute law, case law or international tax treaties. A tax attorney can assist you by negotiating with the Internal Revenue Service (IRS) if you owe back taxes. Tax laws are always changing and tax attorney generally keep themselves abreast of the changes. You will require a tax attorney if:
The IRS is taking serious action against you including audits, fines and liens.
You have a taxable estate, need to make complex estate planning strategies, or need to file an estate tax return.
You are starting a business and need legal counsel about the structure and tax treatment of your company.
You are engaging in international business and need help with contracts, tax treatment, and other legal matters.
You intend to file a lawsuit against the IRS.
You plan to seek independent review of your case before the US Tax Court.
You have been charged with tax fraud (such as claiming false deductions and credits) and need the protection of privilege.

There are no specific qualifications for becoming a tax attorney. A tax attorney like all other attorneys must have a JD degree from an American Bar Association accredited law school and must have cleared the state bar exam. A tax attorney must clear the state bar exam if he wants to practice in a state.

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