Tax attorneys assist businesses, organizations, and individuals with tax-related legal issues. This includes assisting organizations in reducing their exposure to tax liabilities.
Tax attorneys also represent clients who are involved in tax disputes with the IRS or other government entities that levy taxes.
According to legal industry observers and thought leaders, the job of a tax attorney can be less stressful than other legal specialties. Because taxes aren’t going away anytime soon, it’s also regarded as a very stable area of practice.
A tax attorney should be well-versed in tax laws and regulations, as well as have a background in accounting and business law.
A tax attorney must have skills that are common to most attorney positions, such as written and verbal communication, research, and negotiation.
This article explains more about tax attorneys, their responsibilities, and their average salary. Carefully read through!
Who is a Tax Attorney?
A tax attorney is a finance professional who specializes in tax liability policies pertaining to income, business transactions, intellectual and physical property acquisitions, and estate transfers.
Tax attorneys can work with tax law firms, clients on retainer, corporate and business entities, nonprofits, and individuals.
Some tax attorneys work as consultants, while others practice litigation, representing clients who have tax disputes that must be resolved in court.
Tax attorneys, who have a thorough understanding of the complexities of tax law and are highly sought after for their expertise, assist their clients in better understanding tax laws and staying in compliance with taxation.
They provide their clients with advice on trusts, wills, inheritance, estates, and personal wealth management. They attend audit hearings to negotiate tax obligations, related fines, and lien cancellations.
Some tax attorneys choose to specialize in Internal Revenue Service (IRS) issues and assist their clients with IRS settlements, audits and hearings, appeals in federal tax court, and even appeal to the United States Supreme Court.
Why do you want to be a Tax Attorney?
A tax attorney helps people in tax situations by applying their knowledge of tax law. They can assist clients in communicating with the IRS, appealing a court decision, claiming tax credits, or saving businesses money.
Tax attorneys act as advocates for their clients, guiding them through simple tasks like claiming deductions on tax returns to more complex tasks like representing them in tax court. Tax attorneys, in short, use their specialized skills to assist people who do not know enough about taxes to assist themselves.
One of the many reasons tax attorneys enjoys their jobs is the ability to assist clients. Here are some other reasons tax attorneys enjoy their jobs and why you should consider a career in this field:
- Stability: The need for tax law experts is constant and year-round. During economic downturns, the position remains stable and continues to grow.
- Tax attorneys can work in a variety of industries, from accounting firms to in-house counsel for businesses to the federal government.
- Balance: Tax lawyers have a better work-life balance than other legal specialties, working more consistently and for fewer hours.
- Attorneys in the United States earn an average of $96, 190 per year.
- Client diversity, ranging from small businesses to multinational corporations, litigation, and nonprofits, keeps work unique and interesting.
- Help: Tax attorneys can assist in the continuation of a business, the preservation of a family’s finances, the support of a charity, the implementation of a tax law change, or the provision of volunteer services.
Read Also: INTANGIBLE TAX | Definition, How It Works In Florida and Georgia
What Are Tax Attorney’s Responsibilities?
Tax law touches on a wide range of legal issues, but some common duties and responsibilities are as follows:
Purchase and Sale of a Business
Lawyers can help you with capital gains, depreciation, sales tax, and stock purchases. They look into the value of a company as well as the seller’s finances, debts and liabilities, and assets to determine how to structure the purchase and sale. In addition, they draft tax-related contract provisions and handle potential state audits and tax clearance issues.
Business Formation Lawyers advise clients on the best type of business entity to form, such as a C-Corp, S-Corp, or limited liability company.
They provide tax advice, draft business formation documents such as articles of incorporation, and complete forms to be filed with the state and the IRS.
These experts also draft LLC agreements and corporate bylaws and help clients transfer business assets to LLCs or corporations.
Estate Planning Practitioners advise clients on the best ways to pass wealth to heirs via wills and trusts.
They advise clients on the best types of trusts and trust provisions to maximize tax savings, and they keep them up to date on changes in federal and state estate tax laws. Estate planners help clients transfer assets from their estates into trusts.
IRS Disputes Specialists develop and carry out plans of action to address issues such as audits, back taxes owed, errors in tax amounts owed, and tax evasion.
They draft IRS letters, meet deadlines, negotiate resolutions and settlements with the IRS, and represent clients in federal court.
Appeals for Property Taxes
Attorneys who work on these cases double-check client documents for accuracy, including letters from local governments with assessed values and legal descriptions.
They investigate comparable properties’ tax assessments and potential exemptions, as well as arrange for property appraisal. These experts request assessments from the local assessor’s office and advise clients on the best course of action. In addition, they can file appeals with the assessor and represent clients at hearings.
Research
To stay current on changes in tax law, tax lawyers review legislative updates, IRS rule changes, and recent case law. To ensure client compliance, they read, synthesize, and analyze the federal tax code, as well as other tax laws.
Read Also: TAX ASSOCIATE: Duties, Skills, Career Path & 2022 Salaries
What Does a Real Estate Tax Attorney Do?
Real estate law governs the purchase and sale of real property, which includes land and any structures built on it. It also addresses legal issues concerning items attached to the property or structures, such as appliances and fixtures.
Real estate lawyers ensure that proper procedures are followed during the acquisition or sale of the property. They may also be concerned about how a property is zoned for use.
Deeds, property taxes, estate planning, zoning, and titles are all covered by real estate law.
State and local governments have different real estate laws. Attorneys must be licensed to practice in the state where the transaction is taking place, and they must keep up to date on any state or local developments that may affect the transaction.
Responsibilities of the Real Estate Tax Attorney
A real estate attorney is qualified to prepare and review purchase agreements, mortgage documents, title documents, and transfer documents.
A real estate attorney who has been hired to handle a transaction will always be present at the closing with the buyer.
When the money is paid and the title is transferred, this is referred to as closing. The attorney’s role is to ensure that the transfer is legal, binding, and in the client’s best interests.
The real estate attorney and staff may prepare documents, write title insurance policies, conduct title searches on the property, and handle the transfer of funds for the purchase during the purchase of a property.
If the purchase is financed, the attorney is in charge of preparing paperwork for the buyer’s lender, such as the federal HUD-1 Form and related transfer of funds documentation.
With a real estate dispute, such as a chain of title, lot line issues, or other contract-related issues, the attorney will resolve the issue.
When a real estate dispute ends up in court, a real estate attorney can represent either the buyer or the seller.
The real estate attorney gathers facts from both sides of the dispute and attempts to resolve them. Hiring a surveyor or title company to work through the details may be necessary.
Read Also: FORM 911: How to Request a Taxpayer Advocate Form
What is a Tax Attorney’s Salary?
The average salary of a tax attorney is $120,910 per year, according to the BLS. Salaries in the law field range from $58,220 to $208,000. Several factors may impact earning potential, including a candidate’s work experience, degree, location, and certification.
According to PayScale, a tax attorney’s salary starts around $80,000 per year. As attorneys gain experience and establish their skills, earning potential may exceed six figures. The table below details the average salary tax attorneys may earn as their career progresses.
The average salary for a tax attorney is $130,000 in the United States. Position salary will vary based on experience, education, company size, industry, and market.
| Location | Salary Low | Salary High |
| Phoenix, Arizona | $129,300 | $174,900 |
| Los Angeles, California | $145,850 | $197,350 |
| Denver, Colorado | $121,550 | $164,450 |
| Washington, DC | $148,050 | $200,350 |
| Miami, Florida | $121,000 | $163,700 |
| Orlando, Florida | $111,600 | $151,000 |
| Tampa, Florida | $112,700 | $152,500 |
| Atlanta, Georgia | $118,250 | $159,950 |
| Chicago, Illinois | $135,900 | $183,900 |
| Boston, Massachusetts | $146,950 | $198,850 |
| Minneapolis-St. Paul, Minnesota | $117,150 | $158,450 |
| New York City, New York | $154,700 | $209,300 |
| Philadelphia, Pennsylvania | $125,950 | $170,450 |
| Dallas, Texas | $122,650 | $165,950 |
| Houston, Texas | $121,550 | $164,450 |
| Seattle, Washington | $141,450 | $191,350 |
| National Average | $110,500 | $149,500 |
Tax Attorney Professional Organizations Jobs
Here are some organization jobs for tax attorneys:
Section of Taxation of the American Bar Association
Meetings and conferences can be attended by members from all over the country to discuss current issues and pending legislation. They also have the opportunity to network and hear from speakers on a variety of tax topics.
This section of the ABA also provides opportunities for continuing education, tax podcasts, and advocacy.
The National Association of Tax Professionals (NATP)
This association welcomes both new and experienced tax professionals, including tax attorneys, to gain access to federal tax code updates, networking opportunities, education courses, an online tax library, and advocacy.
The National Society of Tax Professionals
This organization offers its members a tax research service, a federal tax alert, continuing education opportunities, professional liability insurance, a newsletter, and email updates on current issues.
Tax Policy Institute
This website, which serves as a clearinghouse for tax topics, provides research and commentary, statistics, information on current and proposed laws, a blog, newsletters, and model estimates for tax attorneys and other professionals.
TaxProf Blog
This website provides legal blogs edited by tax law professors, deans, and lawyers, as well as a comprehensive list of global tax organizations, policy groups, grant opportunities, books, student resources, and state and federal tax law links.
FAQs
How much does a tax attorney makes?
The average salary of a tax attorney is $120,910 per year, according to the BLS. Salaries in the law field range from $58,220 to $208,000.
What does a real estate tax attorney do?
Real estate tax attorney ensure that proper procedures are followed during the acquisition or sale of the property. They may also be concerned about how a property is zoned for use.
Who is a tax attorney?
A tax attorney is a finance professional who specializes in tax liability policies pertaining to income, business transactions, intellectual and physical property acquisitions, and estate transfers.
