Duties and Functions of a Tax Attorney

An attorney who deals with legal matters that concern taxes is called a Tax attorney. They generally manage financial or tax matters for their clients, as they have strong knowledge of tax laws of the state, which includes issues related to income, property, gift and government taxes. The tax Attorney Honolulu is also very particular about following all policies.

Duties of a Tax Attorney:

Tax attorneys are generally appointed for consultations regarding different tax laws, but sometimes their services are needed to represent clients in case of any litigation or dispute. They generally work for Law firms and are hired by clients like corporate, business houses, non-profits organizations, government, as well as individuals.

Duties and Functions of a Tax Attorney

Tax attorneys are also responsible for the following:

  • Maintenance of confidential records and tax information of their clients.
  • Should have understanding of finance of and accounts.
  • Should be able to communicate and negotiate with federal, state and local government.
  • Should be able to evaluating and assess complicated tax issues.
  • Should have in-depth knowledge of federal and state laws.

When is a tax Attorney needed?

A tax attorney manages lot things apart from filing individual tax returns for their clients. They handle the following cases as well:

When starting a business:

A tax attorney advises his clients when they are setting up their business, as to what kind of entity should they go for. Whether it should be sole proprietorship, or in partnership. They help to draw the tax structure of the company including some non-tax issues, which might not have been considered.

When starting an International Business: Tax Lawyers help in drawing the contracts and other legal matters.

Managing Estates:

A tax lawyer devises estate-planning strategies like planning the earnings of the estate in such a way, thatthe client stay below the tax exemption limit and avoid a huge portion of the estate earnings going to taxes.

For Creating Trusts or Wills: Tax attorneys also help in as an advisor for clients interested in setting up or changing trusts and wills. They also oversee the eventual distribution of financial and material assets among beneficiaries.

In case of a tax fraud: If the client is under criminal investigation by the Income Tax Department of the state, the tax attorney represents the client in the court of law he is not under obligation by law to divulge any information of tax wrong doings done by his client.

With the increasing complexity in tax laws, the services of a tax attorney have become very essential, as they help in the tax matters of individuals. They help their clients to  sail through complex and sensitive tax issues, such as noncompliance with tax filings , estate earning  administration, IRS audits, , federal tax liens and levies, ineffective business formation, foreign tax reporting etc. and increase their  chances of successful resolution while protecting their best interests.