A tax attorney is a legal professional who specializes in tax law. They have in-depth knowledge and experience in all areas of tax law, including state and federal tax regulations. By working with a tax attorney, you can get expert advice on complex tax issues, tax planning, and strategies for minimizing your tax liability. If you are facing a tax audit, investigation, or dispute with the IRS or state tax authorities, a tax attorney can represent you and protect your rights. They can negotiate with the tax authorities on your behalf and work to resolve any tax disputes in your favor.
How To Choose A Good Tax Attorney in Delaware
Choosing the right tax attorney in Delaware can be a daunting task, but here are some tips to help you find a good one:
Look for a specialist: Tax law is a specialized field, so it is important to look for an attorney who specializes in tax law. This means that they have experience dealing with tax issues and are up-to-date with the latest tax laws and regulations.
Check their qualifications: Make sure the attorney you choose is licensed to practice law in Delaware and has a good reputation in the legal community. You can check their qualifications and reviews online or ask for referrals from friends or colleagues.
Experience: Look for an attorney with significant experience in tax law. Ask about their experience working with clients who have similar tax issues to yours, such as tax audits, tax disputes, or tax planning.
Communication skills: Choose an attorney who communicates well and is responsive to your needs. They should be able to explain complex tax issues in simple terms and provide regular updates on the progress of your case.
Fees: Make sure you understand the attorney’s fee structure before hiring them. Some attorneys charge by the hour, while others charge a flat fee or a contingency fee based on the outcome of your case. Choose an attorney whose fees are reasonable and transparent.
Seeking A Tax Attorney In Your City?
Delaware is a small state located in the Mid-Atlantic region of the United States. The state has only three counties and a total of 57 incorporated cities and towns. Here are some of the main cities in Delaware:
Wilmington – Located in New Castle County, Wilmington is the largest city in Delaware and serves as the economic and cultural hub of the state.
Dover – Located in Kent County, Dover is the capital of Delaware and is known for its historic sites and museums.
Newark – Located in New Castle County, Newark is home to the University of Delaware and has a vibrant downtown area with shops, restaurants, and cultural events.
Middletown – Located in New Castle County, Middletown is a rapidly growing city that has seen significant development in recent years.
Smyrna – Located in Kent County, Smyrna is a historic city with a charming downtown area and a rich cultural heritage.
Common Fees For Tax Attorneys in Delaware
The fees for tax attorneys in Delaware can vary depending on the complexity of the case, the attorney’s level of experience, and the fee structure they use. Here are some common fee structures for tax attorneys in Delaware:
Hourly rates – Some tax attorneys charge by the hour, with rates ranging from $200 to $500 or more per hour. This fee structure is typically used for cases that require a significant amount of work or involve complex legal issues.
Flat fees – For some tax-related services, such as tax return preparation or basic tax planning, a tax attorney may charge a flat fee. The fee will depend on the scope of the work required.
Contingency fees – In some cases, a tax attorney may agree to work on a contingency fee basis, which means they will only be paid if they are successful in obtaining a settlement or judgment in your favor. The contingency fee will be a percentage of the amount recovered, usually around 30%.
Retainers – Some tax attorneys require clients to pay a retainer fee upfront. This fee is an advance payment for the attorney’s services and is held in a trust account until the work is completed.
Common Individual Tax Issues
There are several common tax issues that individuals may face when filing their tax returns. Here are some of the most common individual tax issues:
Late or non-filing of tax returns – Failing to file your tax return by the deadline (typically April 15th) can result in penalties and interest charges. If you are unable to file on time, you can request an extension.
Errors on tax returns – Mistakes on tax returns can result in underpayment or overpayment of taxes. This can lead to penalties and interest charges if not corrected.
Failure to report income – Failing to report all income, including income from side jobs, investments, and rental properties, can result in penalties and interest charges.
Claiming ineligible deductions or credits – Claiming deductions or credits that you are not eligible for can result in penalties and interest charges.
Non-payment of taxes – Failing to pay the full amount of taxes owed can result in penalties and interest charges.
Audits and tax disputes – Individuals may be selected for a tax audit or face a tax dispute with the IRS or state tax authorities. This can be a complex and stressful process, requiring the help of a tax attorney or other tax professional.
Corporate Tax Issues
Corporate tax issues are complex and can have serious financial consequences for a business. Here are some of the most common corporate tax issues:
Non-compliance with tax laws – Corporations must comply with federal, state, and local tax laws. Failure to comply can result in penalties, fines, and legal action.
Tax evasion – Intentionally avoiding paying taxes by concealing income or taking improper deductions can result in criminal charges.
Transfer pricing – This occurs when a multinational corporation sets prices for goods and services between its subsidiaries in different countries to shift profits to lower-tax jurisdictions.
Failure to withhold and remit payroll taxes – Corporations must withhold and remit payroll taxes, including Social Security and Medicare taxes, for their employees. Failure to do so can result in penalties and interest charges.
State and local tax issues – Corporations must also comply with state and local tax laws, including sales and use taxes, property taxes, and franchise taxes.
Tax audits and disputes – Corporations may be selected for a tax audit or face a tax dispute with the IRS or state tax authorities. This can be a complex and time-consuming process that requires the help of a tax attorney or other tax professional.
Common Tax Resolutions
Tax resolutions refer to ways to resolve tax issues or disputes with the Internal Revenue Service (IRS) or state tax authorities. Here are some common tax resolutions:
Installment agreements – This is an agreement between a taxpayer and the IRS or state tax authority to pay their tax debt over time in monthly installments.
Offer in compromise – This is a settlement agreement between a taxpayer and the IRS or state tax authority in which the taxpayer pays a reduced amount to settle their tax debt.
Penalty abatement – This is the removal of penalties and interest charges assessed by the IRS or state tax authority. Penalties may be abated if the taxpayer can demonstrate reasonable cause for the failure to comply with tax laws.
Innocent spouse relief– This is relief from joint tax liability for a taxpayer who filed a joint return with their spouse and did not know about or did not participate in their spouse’s tax fraud or misrepresentation.
Risks of Using a Tax Attorney in Delaware
Like any legal professional, there are risks associated with using a tax attorney in Delaware. Here are some potential risks to be aware of:
Cost – Hiring a tax attorney can be expensive, especially if your tax issues are complex and require a lot of work. It’s important to discuss fees and billing arrangements upfront with your attorney to avoid any surprises.
No guarantees – While a tax attorney can provide legal guidance and representation, there are no guarantees that their efforts will be successful in resolving your tax issues.
Ethical concerns – Like all attorneys, tax attorneys are bound by professional ethics rules. However, there is always a risk of unethical behavior, such as conflict of interest or malpractice. It’s important to research and choose a reputable and experienced tax attorney.
Limited scope of representation – Tax attorneys may limit the scope of their representation to specific issues or stages of the tax process. It’s important to clarify what services will be provided and what is expected of you as the client.
Delayed resolution – Resolving tax issues can take time, and there is no guarantee of a quick resolution. This can be frustrating and costly, especially if penalties and interest charges continue to accrue.
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 and states 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 examples of 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.
Using an experienced tax relief firm can offer many benefits when dealing with tax issues. Here are some of the key benefits:
Expertise – Tax relief firms specialize in resolving tax issues, so they have a deep understanding of the tax code, tax laws, and tax procedures. They can leverage this expertise to provide the best possible representation for their clients.
Experience – Experienced tax relief firms have handled many cases similar to yours, so they know what strategies and tactics work best to achieve the desired outcome. They can use this experience to your advantage to help you resolve your tax issues as quickly and efficiently as possible.
Reduced stress – Dealing with tax issues can be stressful and overwhelming, especially if you are not familiar with the tax code or procedures. An experienced tax relief firm can handle all aspects of your case, including communication with the IRS or state tax authority, so you can focus on other things.
Reduced penalties and interest – Tax relief firms can work with the IRS or state tax authority to reduce or eliminate penalties and interest charges, which can save you a significant amount of money.
Comprehensive representation – Tax relief firms can provide comprehensive representation for a wide range of tax issues, including audits, liens, levies, wage garnishments, and tax debt relief.
Better outcomes – With their expertise and experience, tax relief firms can often achieve better outcomes for their clients than individuals can on their own. They can negotiate with the IRS or state tax authority to reduce tax debt, set up payment plans, or settle the debt for less than the full amount owed.
CuraDebt Tax Is At Your Service
If you are a resident of Delaware who needs help resolving tax debt issues, 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. Or submit here online for a free consultation. We will find the best resolution available to you based on your financial situation. 1-877-999-0486