Business Tax: Selecting a Good Lawyer

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Tax law is a highly specialized area of expertise and there are many different types of taxes. Furthermore, not all lawyers have expertise in all types of tax issues or problems. Thus, it's a good idea to prepare a bit more in looking for a good tax lawyer than might be the case with other areas of law.

If you are specifically looking for a tax lawyer, there are several preliminary questions that you should ask yourself:

• What type of taxes are you dealing with? If you are dealing with state or federal income or capital gains taxes, professionals holding themselves out as tax attorneys may be your best bet. If you are looking at estate or gift tax issues, though, you should not rule out estate planning attorneys. If you have issues with payroll or employment taxes, you may want an employment or labor lawyer. If you are being challenged on sales, use or excise taxes, a business lawyer may also be able to address your needs.
• You must be able to clearly describe the type of tax issues that you have. In most instances, you probably fall into one of two categories: either you are doing business or estate planning, or you have a current problem with the IRS or another taxing authority. It's important to recognize the distinction, as not all tax attorneys can handle both types of legal problems. And there are many business or trial lawyers who could do a fine job for you on an IRS problem, even though they may not hold themselves out to be tax specialists..

Regardless of your situation, you may already have a list of prospective tax lawyers. If you don't, though, a great place to start your search for a lawyer is right here at lawyers.com. You can do a free search to come up with a list of lawyers by using the Find A Lawyer search box that can be accessed from anywhere on lawyers.com. (You should see a search box on the right side of your computer screen.)

Once you have a list of lawyers, you will want to find out every thing you can about them, and then do some initial screening to whittle down your list to three or four prospective candidates:

• Look at the biographies and Web sites for the lawyers and their law firms. Does the lawyer appear to have expertise in tax law? Does he or she have expertise in dealing with the IRS or other taxing authorities?
• Look for a list of representative clients. Are they the types of clients that you would want your lawyer representing? Does the lawyer represent other businesses similar to yours?
• Search on the Internet under the name of the lawyer and his or her law firm. Can you find any articles, FAQ's or other informational pieces that the lawyer has done that that give you a level of comfort?
• Ask other people if they have heard of the attorneys and what they think about them. With a tax lawyer, it would be a particularly good idea to talk to your own CPA or accountant. He or she may be a good source for a referral, as most CPA's and accountants do a lot of work with attorneys and tax attorneys in particular.
• Contact your state bar association or go to their Web site to find out if the lawyer is in good standing
• Check to see if the lawyer is in the yellow pages of your telephone directory. Does the lawyer advertise? If so, do you find it tasteful? (Tax attorneys typically don't place big advertisements in the yellow pages so don't be surprised if you can't find a lot here.)
• Check out the archives of your local newspaper. Has there been any publicity about the lawyer or the cases that he or she has handled?

Consider any special needs you have. For example, could you benefit from an attorney who speaks a language other than English?

Tax law is exceedingly complex. In many jurisdictions, lawyers are able to become certified legal specialists. If you have a sophisticated or difficult tax issue, you may want to talk to a tax lawyer who has been certified by his or her bar association as an expert in the field.

Many tax lawyers also have multiple degrees or certifications. It's not all that unusual, for example, for a tax lawyer to also be a CPA or an accountant. And a number of law schools also offer masters degrees in law (LLM's). They sometimes offer joint MBA/JD degrees, and many people who go through these programs end up as tax lawyers. Again, if you have a sophisticated tax problem, you may want to look for lawyers with this higher lever of training and education.

Look at the lawyer's background. Many tax lawyers have previous experience in other areas that can be invaluable, depending on your particular legal needs. For example, a tax lawyer who previously worked for the U.S. Attorney's office or the IRS may have invaluable experience and contacts if you have a tax problem dealing with the federal government.

Look to the future needs of your business as it continues to grow. Think about retaining a lawyer or a law firm that had areas of expertise to cover all of your anticipated business needs. It is probably fair to say that most tax attorneys belong to a law firm, or at least have an affiliation with one. So you may want to look at a "full service" firm that can handle both your transactions and litigation needs.

You will probably want to hire a lawyer with at least a few years of experience. Look for lawyers that have experience in representing taxpayers with problems similar to the one that you have.

Look to see if a lawyer is affiliated with associations that cater to legal issues affecting businesses. For example, most bar associations have sections in business law and other related categories. Having a lawyer who is involved in a chamber of commerce or other local organizations may also be a good sign, depending on the your legal needs.

Unless there are special circumstances, you will want to hire a lawyer with an office that is not too far away from your business. Special circumstances where you may have to go out of town would include a situation where local attorneys don't specialize in the area where you have specific legal needs, or where you are planning on expanding operations to another location.

Before you hire a lawyer: