What does a tax attorney do? This is a common question I am asked. The world of taxation can be vast and complex and the practice of law in this field can be broad or specific. Further, taxation relates to almost every area of law. For example, when working with businesses, tax considerations are made from the formation and structure of the business, to specific transactions as the business operates and of course when the business is sold, transferred, liquidated or otherwise disposed of. In estate planning, tax considerations are made for the gifting of property and when drafting wills and estate planning documents. In divorce matters, tax issues and considerations are made regarding payments of child support and/or alimony, or through the transfer of property. In personal injury cases, tax issues come about when determining what settlement amounts or portions of a settlement are taxable income. Thus, the tax laws within the United States flow into almost every area of law. In some respects, an attorney with a tax background may work in other areas of law applying their tax knowledge within those specific areas. For example, maybe an attorney with a background in tax is also a business attorney, or maybe an estate planning attorney. The article below is a brief statement regarding what a tax attorney may do.
– Represent their clients before the Internal Revenue Service when a tax debt exists, a client is being audited or there is another tax dispute.
– Business matters: An attorney with a strong understanding of tax law may be involved with their business clients from the formation of the business to explain how the business and the business owners will be taxed. As the business operates, the tax attorney may be used to analyze the tax implications of a specific transaction and draft and/or negotiate certain legal documents. For example, if a client were selling certain assets, a tax attorney could analyze the tax implications to the business and business owners regarding the sale of the business assets. Moreover, a tax attorney may conduct tax planning for their client whereby the client’s current circumstances are analyzed, and options are brought to the client whereby the client may be able to take advantage of legitimate actions to defer or lower their tax liabilities. A tax attorney may assist their client with certain mergers & acquisitions as well as tax free reorganizations.
– Individual matters: A tax attorney may work with their individual clients to analyze the individual income tax implications of certain individual choices such as rental properties, vacation homes, retirement account and/or investment account matters, tax credit issues, pass through income from LLCs or S Corporations, trust income, gifting matters and many other individual choices that impact income tax. Drafting of trust documents to gift property to family, friends or charitable organizations.
– Assist a client in receiving non profit or tax exempt status before the Internal Revenue Service and analyzing circumstances for their client to ensure this tax exempt status is not lost.
– Prepare tax returns for their individual and business client.
– Assist other attorneys regarding the tax implications of a certain issue of which the other attorney is not comfortable in providing.
– Private Letter Ruling: Assist a client in requesting a private letter ruling from the IRS.
The above examples are only a few of those in which a tax attorney may apply their knowledge of the Internal Revenue Code to their client’s situations, issues and matters. A Denver tax attorney at The McGuire Law Firm can assist you with matters before the IRS such as IRS tax debts and IRS audits, in addition to tax related business matters such analyzing the tax treatment of certain business transactions and individual and business tax planning.
You can speak with a Denver tax attorney at The McGuire Law Firm through a free consultation! John McGuire has worked with many small businesses and individuals regarding their business and tax legal matters, and would welcome the opportunity to meet you.