If you’re like most Americans, you probably have a lot of questions about your taxes. If you’re not familiar with the complex tax laws that apply to you, it’s a good idea to talk to a lawyer. Here are five questions you should ask your tax lawyer.
What Questions Should I Ask My Tax Lawyer?
If you’re considering representation by a tax lawyer, there are a few key questions you should ask. Here are four to get started:
1. What services do you offer?
2. What is your experience with specific tax issues?
3. How much will you charge for your services?
4. What assurances can you provide regarding the quality of your work?
How to Prepare for Your First Meeting with a Tax Lawyer
- If you have never had to consult with a tax lawyer before, it may be helpful to read about different types of legal representation and what they entail before your first meeting.
- Be prepared to answer questions about your personal finances, including income, deductions, and exemptions.
- Bring all relevant documentation to the meeting – your W-2s, bank statements, etc. – so that the lawyer can get a good understanding of your situation.
- Ask the lawyer how much money you might owe in taxes and what options are available to you to reduce or avoid paying those taxes.
- Agree on a plan of action with the lawyer and commit to following through on it. It is important to remember that tax law is complex and changes regularly, so make sure you understand your options and what will need to be done in order to comply with the law.
Understanding the Different Types of Taxes
When you’re preparing your tax return, there are a few things to keep in mind. Here’s a rundown of the most common taxes and what they are:
- Income taxes: This is the tax levied on your income. You’re assessed a percentage of your total income, based on your filing status. Pay attention to deductions you can take to reduce your taxable income.
- Property taxes: This is the tax levied on the value of property within a municipality, county, or state.
- Social Security and Medicare taxes: These taxes are paid by employees and employers, respectively, on all wage and salary income.
- Sales taxes: This is the tax levied on the sale of goods and services. It’s often combined with other taxes (like income taxes) to create a total cost of purchase.
- Federal estate tax: If you’re inheriting money or property from someone else, you may have to pay estate tax. State inheritance/estate/gift tax: Depending on where you live, this tax may be imposed when someone dies.
Reviewing Your Tax File
When you file your taxes, it’s important to have an understanding of what’s in your tax file. Depending on your income and filing status, you may be entitled to certain benefits, including:
- A refund if you overpaid taxes.
- A reduction in your taxable income.
- A credit for child education expenses.
- A housing deduction.
To get the most out of your tax preparation services, it’s important to ask your lawyer about what’s in your file. Here are some questions to ask:
- What deductions can I take?
- What credits can I claim?
- What tax rates apply to me?
- What benefits am I eligible for?
Making Changes to Your Circumstances
If you have made changes to your circumstances since filing your taxes last year, you may want to consult with a tax lawyer. Here are four questions you might want to ask:
1. Have I sold or transferred any assets since last year?
2. What is the new value of my assets?
3. Have any bills been paid or expenses incurred since last year that were not taken into account when I filed my taxes?
4. What changes, if any, do I need to make to my income and deductions estimations?
Determining if You’re Eligible for a Tax Deduction
Taxpayers have many different deductions they may be able to take to reduce their tax liability. The most common deductions are for personal expenses, such as mortgage interest and charitable contributions. However, certain types of expenses may not be deductible at all, such as state and local taxes. In order to determine if you’re eligible for a particular deduction, you’ll need to speak with a tax lawyer.
Preparing for an IRS Audit
If you’re like most people, you probably don’t think about your taxes very often. But what you should know is that the IRS is always looking for ways to gain extra money…
When it comes to preparing for an IRS audit, there are a few things you should keep in mind. First and foremost, make sure you have all of your paperwork in order. This includes all of your tax returns, W-2s, 1099s, and any other documentation that proves you were.
