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7 Reasons to Hire a Tax Attorney

Even if you live under a rock, you are likely to know that the federal tax laws are complex. Indeed, according to a recent analysis prepared by the Tax Foundation, an independent tax policy nonprofit organization, the Internal Revenue Code (“IRC”) consists of some 2,412,000 words, with the regulations that help “explain” that law adding an additional 7,655,000 words. Ten million words, not to mention a substantial body of tax-related case law – what could be easier?  So when in doubt, hire a tax attorney.

Why Hire a Tax Attorney?

Is it any wonder that when most New Yorkers have a tax issue, they turn to a professional? What considerations should a taxpayer employ when hiring a tax attorney? Here are seven points to keep in mind.

1. For basic tax filing and business advice, a CPA may suit your needs. Indeed, particularly for an ongoing business, you’ll likely need the help of a qualified accountant. When it comes to more complex issues regarding the IRC and the mountain of case law that has developed over the years though, an experienced tax attorney is a must.
2. A CPA or other financial planner can provide “broad brush” assistance in estate planning, tax planning, and in business arrangements. Because they’re not permitted to practice law, however, they may not draft the important documents that are required to fulfill your wishes such as Wills, trusts, buy-sell agreements, and the like. Only a licensed attorney can provide those services.
3.  A tax attorney is trained to act as an advocate for you if you have been subjected to an audit or other tax investigation. Sometimes, you need an actual warrior.
4. Particularly when it comes to business organizations, a tax attorney has the skills and experience to navigate not only the IRC and regulations, but the New York Business Corporation Law. While an accountant can provide valuable advice as to various business alternatives, the CPA can’t draft and file the necessary organizational documents that are required.
5. A taxpayer often needs more than a spokesperson. A qualified, experienced tax attorney is usually a skilled negotiator. He or she can argue your case and get the best deal possible.
6. Only an experienced tax attorney can provide you with adequate representation if you are the target of a criminal investigation regarding your tax filings.
7. Many taxpayers overlook another important consideration: There is no such thing as a CPA-client privilege. Any communication between you and your CPA cannot be considered fully confidential. A CPA can sometimes be forced to testify against a taxpayer-client. All disclosures made to a tax attorney are, however, subject to the attorney-client privilege.

Mackay, Caswell & Callahan P.C. – Strong, Experienced New York Tax Attorneys

Do you have tax issues that leave you bewildered? Does your business need the type of counsel and advice that can only be provided by a skilled, aggressive, and strong tax attorney? Have you received an audit notice or other evidence that you or your business is under investigation? If so, contact one of the Upstate New York tax attorneys or New York City tax attorneys at Mackay, Caswell & Callahan P.C. today. With offices in Albany, New York City, Rochester, Syracuse, Utica, and Watertown and more than 30 years experience handling all types of tax controversies, we provide strong, proactive, and confidential legal counsel to individuals and businesses alike. We are absolutely committed to achieving the best results for our clients as efficiently as possible, with straight talk and effective solutions. Call us or contact us using our online form.