If you are asking what a tax attorney actually does, you either need to hire a tax attorney or you are considering a career as a tax attorney.
While tax law is considered a speciality in the legal field, the term “tax attorney” is quite broad. Tax attorneys can work in a number of varying roles. Tax attorneys can be divided or classified by the type of work they do, namely, tax relief, tax disputes, tax planning, or tax legislation work. The work performed by the tax lawyers in each of these categories varies widely from one category to the next.
Tax Relief Attorneys
Tax relief attorneys focus on helping clients who owe tax debts. They focus on helping taxpayers settle or resolve IRS and state tax collection matters. Tax relief attorneys who work for law firms may also do some bankruptcy work.
Many tax relief attorneys work for tax resolution companies rather than law firms. Others work as solo attorneys or for small boutique tax law firms. These small firms may focus on helping clients located in specific geographic areas, such as those owing back taxes in Houston, Texas.
While the work is important, it is not glamorous. Tax relief attorneys often do not need strong writing or math skills to be successful. Patience and the ability to build rapport with IRS and state collectors is more important.
Because this work focuses primarily on administrative guidance and policies rather than substantive tax law, some might even argue that this work is not even legal work. In fact, it is common for CPAs and enrolled agents to do this work.
Tax Dispute Attorneys
Tax dispute attorneys work on state and IRS tax audits, appeals or litigation.
Tax dispute attorneys often start their legal careers as attorneys for the IRS or state tax authorities. Most eventually end up working for small or mid-sized tax law firms. Like tax relief law firms, firms that focus on tax disputes are located throughout the United States and serve geographic areas. For example, you might find a tax dispute attorney in Houston, Texas or in other major cities.
A very small number of tax dispute attorneys start at large law firms right out of law school.
Tax dispute work can differ significantly between small/mid-sized law firms and “big law” firms. Small and mid-sized firms tend to focus on individual and small-business clients. Big law firms typically cater to Fortune 1,000 companies. The work is the same as that by small and mid-sized law firms, but the tax dollars at issue are typically much higher. The big law attorneys tend to focus more on corporate and international business transactions.
This work is often considered more prestigious than tax relief work, as it touches on substantive tax law. The challenge is how to apply the tax procedural rules and administrative functions in light of the substantive tax law to achieve a favorable outcome for clients.
This work also involves quite a bit of writing–from responses to auditors and appeals officers to briefing tax cases for court. Those who are successful in this work have a balance for research, numbers, and oral and verbal communication.
Tax Planning Attorneys
Tax planning attorneys help reduce tax bills. They structure or advise on the tax implications from various financial transactions.
Tax planning attorneys will typically have advanced law degrees in tax (a LLM degree) or have taken several tax classes in law school.
Tax planning attorneys may work for accounting firms or any size of law firm. As with tax dispute attorneys, the work tax planning attorneys do depends on the size of the firm. Smaller firms tend to help individuals and small businesses. Big law and accounting firms tend to help Fortune 1,000 companies.
The sophistication of the work increases for large law firms. Tax planning attorneys at smaller firms typically handle estate and gift and business transactions. Tax planning attorneys at larger firms may specialize in very narrow areas, such as particular employee benefits, M&A, etc.
Within the tax field, tax planning work is often considered to be the most prestigious work a tax lawyer can do. This is due to the requirement to keep on top of substantive tax laws. Strong research and writing skills are needed to be successful as a tax planning attorney. This also adds to the prestige.
Tax Legislation Attorneys
Some tax attorneys also focus on tax legislation. These attorneys assist state and Federal law makers in evaluating, drafting, and defending tax laws.
Many tax legislation attorneys start by working as an intern or staff position with a Congressman. They may even work for the Joint Committee on Taxation, with the IRS in its national office, or for non-profits that have a tax focus, such as the Tax Foundation or the Real Estate Roundtable.
As with tax planning, strong research and writing skills are needed to be successful as a tax legislation attorney. The ability to network and to get to know people helps as well.
Conclusion
Most tax attorneys either help taxpayers with unpaid taxes, handle tax disputes, help clients plan to minimize taxes, or assist Congress and others with new tax laws or policies. Understanding this range of work, one can better understand what a tax attorney actually does for a living.