Tax Attorneys - When are they Necessary

A tax attorney is a professional who has focused his work to be in taxes. This could include real estate tax, personal tax, corporation tax, luxury tax, foreign tax, employment tax, payroll tax, state tax, or federal tax. All these taxes fall onto the desk of a person holding a law degree with a concentration in tax classes or a master's degree in tax law. Tax Lawyers have certification or a license required to practice law and to practice tax in multiple states so an MBE (multi-state bar exam) is also obtained. The bottom line is, an attorney is trained to argue cases and a tax accountant is an accountant.

Tax law is a profession that requires an attorney who can understand the laws and how they can be used to help clients get the best bottom line for tax reporting. This means making decisions like the best state in which to open a corporation or the preferred business entity to select for a new store opening shop. To protect investors, should a business file as a corporation, S corporation or form a partnership? The attorney can stand by a client in audits to explain complicated rules that taxing agencies require for businesses and individuals. Audits for any tax are one of the key reasons tax attorneys are needed as a profession.
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There is a need for an attorney when the taxpayer is facing stiff decisions for fraud or accused of using a tax law incorrectly for a purpose it might not have been intended. In many cases the tax attorney must show the intent of the law and its broader application. The broader application would be called a ''loophole''. The intent of the tax law might not be expressed, but the wording conveys the legitimacy of its use.

Compensation for a tax attorney can start as low as $60,000 in the lower paid regions of the US. However, after a few years of experience the salary can climb to $100K+. Here is a sample ad that you might see if an employer were looking for a Tax Attorney in the utilities industry:

Looking to hire a high end Tax Attorney with experience in project finance. The candidate must have tax structuring experience at both state and federal platforms. The employer  requests 3 or more year’s experience in energy utilities.

In conclusion, the practice of a tax attorney is an exciting branch of the law and is a very necessary profession. Tax law education is required in addition to the law degree and it is best to get some experience because tax is another special set of laws all to its own. The remuneration is considerable for the long hours and diligent time expended in research. The working environment might be in a law firm, government agency, a large corporation or even in real estate. The tax world is not likely to slow down for quite sometime because the government keeps putting out new laws, and clients are always looking for a tax break. Tax Attorneys will be there to show taxpayers their best way through the tax audits and court cases related to tax law.

See entry level tax attorney jobs on LawCrossing.