Tax attorneys are experts in tax law and have extensive knowledge of the tax code, regulations, and procedures. They can help you navigate complex tax issues and provide advice on tax planning and compliance. If you are facing a tax audit, investigation, or litigation, a tax attorney can provide legal representation and advocacy on your behalf. They can represent you in negotiations with the IRS or state tax authorities and can help you avoid or minimize penalties and fines. A tax attorney can provide valuable advice on tax planning strategies that can help you reduce your tax liability and maximize your tax savings. They can help you structure your business or personal finances to take advantage of tax incentives and deductions. Tax attorneys are bound by the attorney-client privilege, which means that any communications between you and your attorney are confidential. This can be important if you have sensitive or confidential information related to your taxes.
How to Choose a Good Tax Attorney in Alabama
Choosing a good tax attorney in Alabama can be a daunting task, but here are some tips to help you make the right choice:
Look for experience: Look for a tax attorney who has experience handling cases similar to yours. Check their website, online profiles, or ask for referrals from friends or colleagues to learn about their experience and track record.
Check their credentials: Verify that the attorney is licensed to practice law in Alabama and is in good standing with the state bar association. Look for additional credentials such as a Master of Laws in Taxation (LL.M.) or certification as a specialist in tax law.
Check their availability: Tax issues can be time-sensitive, so you want an attorney who is responsive and available when you need them. Ask about their availability, communication style, and how quickly they respond to phone calls or emails.
Consider their approach: Every attorney has their own approach to handling cases, so it’s important to find an attorney whose approach aligns with your goals and values. Consider whether they take a proactive or reactive approach, their level of aggressiveness, and their willingness to work collaboratively with you.
Consider their fees: Tax attorneys’ fees can vary widely depending on their experience, expertise, and location. Make sure you understand their fee structure and what services are included in their fees. Consider whether their fees are reasonable and competitive with other attorneys in the area.
Common Fees From Tax Attorneys in Alabama
The hourly fees for tax attorneys in Alabama can vary depending on their level of experience, expertise, and location. According to the Alabama State Bar Association, the median hourly rate for tax attorneys in Alabama is $270 per hour. However, some tax attorneys may charge higher or lower fees based on the factors mentioned above.nHere are some common hourly fees you can expect to see from tax attorneys in Alabama:
Junior tax attorneys or those with less experience may charge between $150 to $300 per hour.
Mid-level tax attorneys with more experience and expertise may charge between $300 to $500 per hour.
Senior tax attorneys with decades of experience and expertise may charge $500 to $800 per hour or more.
It’s important to note that some tax attorneys may charge a flat fee for specific services, such as preparing a tax return or providing legal advice on a specific tax issue. You should discuss the fee structure with the attorney before engaging their services to ensure that you have a clear understanding of the costs involved. Additionally, some tax attorneys may require a retainer fee, which is an upfront payment that covers their initial work on your case. The retainer fee can range from a few thousand dollars to tens of thousands of dollars depending on the complexity of your case and the attorney’s hourly rate.
Common Individual Tax Issues
Here are some common tax issues that individuals and businesses may face:
Failure to file taxes: This is one of the most common tax issues, where an individual or business fails to file their tax returns on time.
Failure to pay taxes: When an individual or business owes taxes but fails to pay them on time, they may face penalties and interest charges.
Tax audits: Tax audits are conducted by the Internal Revenue Service (IRS) or state tax authorities to verify that tax returns are accurate and complete.
Tax fraud: Tax fraud involves intentionally providing false or misleading information on tax returns to evade taxes or claim refunds that are not due.
Unreported income: If an individual or business fails to report all their income on their tax returns, they may face penalties and interest charges.
Employment taxes: Businesses must withhold and pay employment taxes, including Social Security and Medicare taxes, for their employees. Failure to do so can result in penalties and interest charges.
Estate and gift taxes: Individuals may be subject to estate and gift taxes if they transfer assets to others during their lifetime or after their death.
Tax liens and levies: If an individual or business owes taxes and fails to pay them, the IRS may place a lien on their property or seize their assets to satisfy the debt.
Common Tax Solutions
Here are some common tax solutions that individuals and businesses can use to resolve tax issues:
Installment agreements: If an individual or business owes taxes but is unable to pay the full amount, they can set up an installment agreement with the IRS or state tax authority to make monthly payments over time.
Offer in compromise:An offer in compromise is a settlement option that allows an individual or business to pay a reduced amount of their tax debt to resolve the issue.
Innocent spouse relief: If a spouse was unaware of or did not participate in the underreporting of taxes by their partner, they may be eligible for innocent spouse relief to avoid liability for the unpaid taxes.
Penalty abatement: The IRS or state tax authority may waive penalties and interest charges for taxpayers who have a reasonable cause for failing to file or pay taxes on time.
Tax litigation: Taxpayers can challenge tax assessments or other tax-related decisions through litigation in federal or state courts.
Offer in Compromise with Doubt as to Collectibility: This is a type of offer in compromise that is available to individuals or businesses who cannot afford to pay their tax debt in full and also have doubt that the amount of the tax liability is accurate.
Currently Not Collectible: This is a temporary solution that suspends collection activities by the IRS if an individual or business cannot afford to pay their tax debt due to financial hardship.
Corporate Tax Issues
Here are some common corporate tax issues that businesses may face:
Tax compliance: Businesses must comply with federal and state tax laws and regulations, including filing accurate and timely tax returns, paying taxes owed, and maintaining proper records.
Transfer pricing: Transfer pricing refers to the pricing of goods and services between related entities, such as a parent company and its subsidiaries. If the pricing is not at arm’s length or is designed to shift profits to lower-tax jurisdictions, the business may face scrutiny from tax authorities.
State tax nexus: Businesses must have a sufficient connection or “nexus” with a state to be subject to that state’s taxes. This can be a complex issue, particularly for businesses with operations in multiple states.
Deductibility of expenses: Businesses must carefully consider whether expenses are deductible for tax purposes, including expenses related to employee compensation, travel, and entertainment.
Depreciation and amortization: Businesses must properly depreciate or amortize assets over their useful lives for tax purposes. This can be a complex issue, particularly for businesses with significant investments in fixed assets.
Employee classification: Businesses must properly classify workers as employees or independent contractors for tax purposes. Misclassification can result in penalties and interest charges.
Tax credits and incentives: Businesses may be eligible for tax credits and incentives, such as those related to research and development, energy efficiency, and job creation. However, navigating the complex rules and requirements for these programs can be challenging.
When Do You Really Need a Tax Attorney?
If you are accused of tax fraud or evasion, it is in your best interest to hire a tax attorney. A tax attorney can represent you in legal proceedings and help you navigate the complex criminal and civil penalties that may apply. If you have a complex estate, it is also recommended to hire a tax attorney. A tax attorney can provide guidance on how to minimize estate taxes and transfer assets to heirs in a tax-efficient manner.
When Is a Tax Relief Company Better Than a Tax Attorney?
Tax relief companies and tax attorneys offer different services. Tax relief companies specialize in negotiating with the IRS on behalf of taxpayers who owe back taxes, penalties, and interest. These companies often have a team of tax professionals, including enrolled agents and tax preparers, who work to negotiate payment plans or settlements with the IRS. They may also provide assistance with preparing and filing tax returns, obtaining tax transcripts, and addressing other tax-related issues. There are situations where a tax relief company may be more beneficial than a tax attorney. Here are a few scenarios where a tax relief company may be a better option:
Your tax debt is under $250K: If you owe less than $250K to the IRS, a tax relief company may be a better option than a tax attorney. Tax relief companies can negotiate with the IRS to reduce or eliminate penalties and interest, and set up an affordable payment plan that works for you.
You need help with tax preparation: Tax relief companies often offer tax preparation services, which can be beneficial for individuals or businesses who need help filing their taxes correctly. This can help you avoid future tax problems and penalties.
You want to avoid the high cost of a tax attorney: Tax attorneys can be expensive, and their hourly rates can quickly add up. A tax relief company may offer more affordable options, such as a flat fee for their services.
Like any professional service, there are some potential risks associated with using a tax attorney in Alabama. Here are a few potential risks to be aware of:
High costs: Tax attorneys can be expensive, and their hourly rates can quickly add up. Be sure to discuss the costs upfront and get a clear understanding of what you will be charged for their services.
Limited availability: Some tax attorneys may have a heavy workload or limited availability, which could lead to delays in communication or slower progress on your case.
No guarantee of results: While tax attorneys can provide legal representation and advice, there is no guarantee of a specific outcome. Tax law can be complex, and there may be unforeseen issues or complications that arise during the process.
Possible disciplinary actions: In some cases, tax attorneys may face disciplinary actions or complaints from clients, which could impact their ability to practice law.
Benefits of Using an Experienced Tax Relief Firm
Using an experienced tax relief firm can have several benefits when dealing with tax problems. An experienced tax relief firm will have a deep understanding of tax law and the IRS. They will be able to provide you with sound advice and representation based on their knowledge and experience. Tax relief firms have experience dealing with the IRS and can often negotiate a resolution more quickly than an individual could on their own. Dealing with tax problems can be stressful and overwhelming. A tax relief firm can help take some of the burden off your shoulders by handling the negotiations and communication with the IRS on your behalf. An experienced tax relief firm can often negotiate a better outcome for you, such as reduced penalties, interest, or even a lower tax bill. They may also be able to help you set up a payment plan that is more affordable for your situation. Knowing that you have an experienced tax relief firm on your side can provide peace of mind and help you feel more confident in your ability to resolve your tax issues.
Biggest Cities in Alabama
Here are the five biggest cities in Alabama by population, according to the United States Census Bureau’s 2020 population estimates:
Birmingham – 199,358
Montgomery – 198,218
Huntsville – 204,563
Mobile – 188,720
Tuscaloosa – 104,902
If you are a resident of one of these cities or any other city located in the state of Alabama and are struggling to manage tax debt, CuraDebt Tax is here to assist.
CuraDebt Tax Is At Your Service
If you are a resident of Alabama who is overwhelmed with IRS or state tax debt, we are here to help. We have 22 years of experience helping clients with numerous tax related issues. Contact us toll free today for your free consultation. We will find the best resolution available to you based on your financial situation. 1-877-999-0486