7 Tips for Hiring a Business Tax Attorney

An estimated 2.5% of small business owners have to deal with an audit every year. There’s nothing quite as stressful as getting the notification that you’re being audited by the IRS. However, you don’t have to negotiate with the IRS alone. 

A business tax attorney can help you resolve the situation and make the most of your case. These experienced professionals have a deep understanding of tax law and the process of auditing a business. 

However, you want to hire the right professional for the job. So here are some tips you need to know before hiring a tax lawyer. 

  1. Begin Your Search With Recommendations

Chances are that you know someone or can connect with someone who has been in a similar position before. Start your search by asking your family, friends, and associates. Perhaps another business owner has dealt with the same issue. 

If you have a solid support network, make use of it. Someone will likely be able to refer you to a tax attorney that they know and trust.

Referrals allow you to narrow down your choices. Going through a list of nearby tax law professionals can take time, and as a business owner, you may not have enough hours in the day. 

  1. Ask About Credentials

This is a crucial step to take if you want to find an attorney that you can trust will do a good job. 

A tax lawyer must have a law degree and a license. Candidates have to pass a state licensing examination via a bar association or law board. The exact credentials may vary based on your state, so be sure to do your homework first.

Part of the responsibility rests with you, as you should have at least a basic understanding of the audit process. You can learn more about it on this page on tax audits.

Once you have a better understanding of what it means for a business to get audited and whether you need professional help to negotiate, you can successfully interview potential specialists. 

  1. Find an Attorney That Specializes in Similar Cases

Lawyers can specialize in many different areas, and you want to ensure you find someone that knows how to handle tax-related issues. They must have a firm understanding of tax law. It’s also a good idea to find an attorney that has worked on cases like your own in the past. 

Ask about their experience and their history of success. Of course, you have to remember that not all tax-related cases are the same. Don’t accept a one-size-fits-all approach. 

You want to find tax lawyers that have experience handling the IRS and understand the process inside and out. 

  1. Make Sure They Have Time

A tax attorney that’s too busy with other cases won’t spend the same time and energy on you as someone who has a smaller caseload. Make sure that they’re not overwhelmed with work and that they can devote the appropriate amount of effort. 

Go with a law firm that prides itself on its transparency. The more you know about the process and what to expect, the easier you can relax. 

Tax law is a complicated subject, and you’ll likely have questions. You want to find a specialist that takes the time to answer your questions or concerns. 

  1. Research the Costs and Fees

Hiring a tax lawyer can help you make the most of your case or to protect your company against getting audited in the future. These specialists know how to measure all the complicated tax calculations and ensure you’re reporting what you need to. 

It’s an excellent investment for any business owner. However, you also must ensure that you can afford the lawyer you’re researching. 

Ask them about their costs and any fees for their services. Some law professionals charge by the hour while others have a flat rate. Some offer payments that are contingent on the cases’ outcome. 

Of course, you don’t always want to select the cheapest option. The best attorneys charge more for the experience they have and their higher success rate. Research comparable rates and select someone who fits within your budget. 

  1. Think About Personal Compatability

You’re going to work closely with your attorney, so you want to ensure the two of you get along well at least on a professional level. 

Being audited or even managing your business taxes is a stressful process. You don’t want to make the situation worse by working with someone that you don’t trust or like. 

Go with someone that takes the time to explain the process and answers any questions you have in a timely manner. You should feel confident working with the professional that you select. 

  1. Ask About Continuing Education

Tax codes frequently change, meaning you want a professional that keeps up with all the latest laws. The best way to stay updated is through continued education opportunities. 

Ask your attorney what they do to stay informed about the latest alterations to the tax code. There are many ways to keep up with the changes, such as attending events, networking, or subscribing to publications and industry leaders. 

Invest in a Business Tax Attorney

There are many benefits to working with a business tax attorney, especially if you’re facing an audit or worried about accurately filing your taxes. They can help you prevent future complications and problems with the IRS, and help you make the most of your situation. 

Of course, finding the perfect attorney isn’t easy. Make sure to utilize these seven tips so you find the perfect law firm for your needs. 

Are you looking for more law advice or other ways to make the most of your business? Learn about everything from cybersecurity to marketing and more when you read some of our other blogs. 

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