Hiring an attorney to assist you with your tax-related legal issues is a big decision. When they're charging $200-$500 an hour, it is in your best interest to ensure you choose the right person to handle your issues. But before hiring a tax attorney first determine if you really need one. The answers to many basic tax questions can be found on the IRS's website for free, but if you fall into one of the following categories you may need to seek the advice of a qualified tax attorney:
- Starting a business
- Have a taxable estate
- Plan to sue the IRS
- Seeking independent review of your case
- Under investigation by the IRS
A tax attorney can explain in detail your best course of action for any of these situations. But before you retain someone, you should ask them these seven questions before proceeding:
If you are happy with the answers to all or most of these questions then you should be able to easily narrow down who you will hire. Don't forget to get recommendations from any attorney who may not be able to take your case. Chances are they know someone who can do the job and will gladly send the business to a friend.
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Can you help me with my situation?
For less complicated tasks like starting a business, most tax attorneys should say yes with confidence. However, if you are under criminal investigation then no attorney can predict the outcome of your case, but a good one may be able to give you an idea of a potential outcome.
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What do you charge?
Some lawyers collect a retainer when they accept a case and then bill by the hour, while others charge a flat fee to handle a case from beginning to end. Make sure you can afford their services before signing a contract.
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How long have you been practicing law?
When meeting with a lawyer for the first time, you are interviewing them for a job, so don't hesitate to ask about their experience and how it may help you.
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Do you practice tax law exclusively?
Choosing an attorney with a niche in practicing tax law will give you a more qualified attorney.
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Who else will work on the case?
You have a right to know if other lawyers or paralegals will be working on your case. Make sure you ask about their qualifications as well.
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How will you communicate with me?
Lawyers are busy people and chances are that they will not contact you immediately when progress is made on your case. Get some commitment on regular updates so that you are not left in the dark.
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How long will it take to resolve the case?
This could indicate how much you could spend in total, particularly if the case will take months to resolve. You will also want to know when you can expect the case to be resolved.
