Finding the Right Tax Attorney to Protect Your Wealth

April 2, 2024

You’ve built your wealth through hard work and savvy investments, only to find yourself facing a barrage of tax complexities threatening your assets.

That means it’s time to hire a tax attorney. But how do you find one who suits you? We can help.

Let’s go through how to find a tax attorney that can help you protect your money.

Figure Out Your Needs

Take stock of your assets, income sources, investments, and any potential tax liabilities. Determine the complexity of your financial affairs and the level of expertise you require from a tax attorney.

Pinpoint specific areas of concern where you need assistance. This could include tax planning for investments, estate planning, income tax issues, business taxation, IRS audits or disputes, international tax matters, or any other tax-related issues.

Consider the potential risks to your wealth posed by tax burdens, regulatory compliance issues, or legal disputes. Look at the severity of these different risks and prioritize finding an attorney who can help mitigate them effectively.

Look At Your Past Tax Matters

If you look at your past tax situations, it can point you in the right direction when it comes to choosing a tax attorney.

Gather copies of your past tax returns and examine them closely. Identify any areas where you may have encountered challenges, discrepancies, or concerns in the past.

This could include complex transactions, deductions, credits, or issues related to reporting income or assets.

Reflect on any past audits, inquiries, or compliance issues you’ve faced with tax authorities such as the IRS or state tax agencies. Consider how these matters were resolved and whether you were satisfied with the outcome.

If there were any unresolved issues or if you anticipate future audits, prioritize finding a tax attorney with experience in handling such matters.

Determine if there are areas of your tax planning or reporting that could be improved or optimized. This could involve strategies for minimizing tax liabilities, maximizing deductions or credits, or ensuring compliance with complex tax laws and regulations.

Do Your Research

Start by gathering a list of potential tax attorneys. You can do this through various channels. You can get referrals from loved ones or colleagues in similar financial situations who have had good experiences with tax attorneys.

You can look at online directories and legal referral services provided by bar associations or professional organizations.

You can conduct internet searches using keywords related to your specific needs. These could include search terms like “local tax attorney for estate help” or “IRS audit attorneys.”

Look at the specialties of different tax attorneys. Some professionals may specialize in estate planning, for example.

Narrow down your list to a few top candidates and schedule consultations with each of them. During your meetings, discuss your specific tax needs and objectives.

Assess the attorney’s understanding of your situation and their proposed strategies for addressing your concerns. Clarify any questions you have about their experience, fees, and communication processes.

Check Availability and Accessibility

When considering a tax attorney, schedule an initial meeting or consultation to discuss your needs.

Pay attention to how easy it is to schedule this meeting. See whether the attorney accommodates your preferred time and date.

Take note of how quickly a tax attorney responds to your initial inquiry or request for a consultation. Prompt responsiveness indicates their commitment to client communication and may be a good indicator of their availability.

Ask about the attorney’s current workload and client load to gauge their availability to take on new clients and handle your case effectively. Ensure that they have sufficient time and resources to dedicate to your matter without being overwhelmed by other commitments.

Consider Fee Structure

Familiarize yourself with common fee structures used by tax attorneys. They might operate on hourly rates, where the attorney charges an hourly rate for the time spent on your case. Rates can vary based on the specific attorney’s experience and location.

Some services might require a fixed fee. A fixed fee is charged for specific services, such as preparing tax returns, estate planning, or IRS audit representation.

There are also retainer agreements. You pay a retainer upfront, and the attorney bills against this retainer as work is performed. Once the retainer is depleted, you may need to top it off.

Obtain free quotes from multiple tax attorneys you’re considering to compare their pricing and fee structures. Keep in mind that the lowest fee isn’t always the best option; prioritize value and the attorney’s qualifications and experience.

Don’t hesitate to negotiate the fee arrangement with the attorney. That’s especially important if you have a straightforward case or can offer something of value in exchange for a reduced fee.

Trust Your Gut

Your gut instinct often provides valuable insights into whether you feel comfortable and at ease with a particular tax attorney.

Pay attention to how you feel during your interactions with them, including whether you trust their expertise, communication style, and approach to handling your financial matters.

While it’s essential to rely on rational analysis and objective criteria when choosing a tax attorney, don’t discount the value of intuition.

Striking a balance between rationality and intuition allows you to make a well-informed decision that feels right on both intellectual and instinctual levels.

Compatibility with Your Financial Advisor or Accountant

Arrange a meeting or conference call with your tax attorney, financial advisor, and accountant to discuss your shared objectives and priorities.

Aligning everyone’s understanding of your financial goals and concerns is crucial for coordinated decision-making and strategy development.

If you don’t have a financial team aboard yet, you might look for a tax attorney who already works in concert with other advisors. That way, you’ll know in advance that they work well together.

Consider whether your tax attorney, financial advisor, and accountant are part of the same professional networks or associations. Professionals who belong to the same industry organizations may have established relationships and shared expertise that can enhance compatibility and collaboration.