What Does a Criminal Tax Attorney Do?
Your criminal tax attorney should be intimately familiar with both the IRS and your rights as a taxpayer. Your case may require your criminal tax lawyer to assert your Legal Rights, as well as helping you navigate the troubled waters of a criminal tax fraud issue. Some tax fraud prosecutions are based upon a tax evasion theory, in that someone has committed a criminal tax fraud by supplying the government with a false statement or report, in an effort to evade tax. Your tax fraud case may also involve an employment tax fraud scheme, in which case your tax fraud lawyer must be familiar with the different procedures involved in defending cases where there are wage and hour violations . Defense attorneys familiar with tax fraud schemes involving erroneous withholding of tax payments will be a valuable asset in presenting your best possible defense. Your criminal tax fraud attorney will work to represent clients in a variety of tax proceedings, from the audit of a tax return to administrative expenses as well as criminal tax fraud investigations conducted by the IRS Criminal Investigation Division. Enrolled agents, tax attorney representation and collection issues can all be handled under one roof by a competent criminal tax attorney. This will allow your attorney to spot any possible issues that might arise with other aspects of your tax situation.
When to Get a Criminal Tax Attorney
Finding yourself on the wrong side of the Internal Revenue Service is truly a nightmare scenario. They want to break you and they have the teeth to make it happen. Here are a few common scenarios that might lead one to hire a criminal tax attorney to fight back against the IRS.
Litigation regarding discrepancies between the tax return and information that the IRS has. This could involve asset concealment or unreported income. These types could result in civil litigation or criminal litigation if the audit expands and review of your actual assets indicates you are misreporting for a long period of time. Falsifying documents, witness tampering, or destruction of evidence for example could lead to criminal litigation.
IRS Tax evasion threat. You’re being investigated for tax evasion. A criminal lawyer can help protect you from criminal tax evasion charges.
IRS followed your tax return audit and found problems. You haven’t responded to the IRS and are getting notices of penalties. You need to be in compliance and you need to hire a criminal tax lawyer to respond to the IRS and if necessary get you into a repayment plan so you don’t owe them anymore money.
Fraudulent returns. The IRS believes you have filed fraudulent tax returns. The statutes for fraud allow the IRS to go back many years. You need to contact a criminal tax lawyer that can talk to the IRS for you.
What to Look for in a Criminal Tax Attorney
So, now you know that the best course of action is to reach out to an experienced criminal tax attorney, but do you really know what to look for in a quality lawyer? Investigating and vetting a potential attorney can be a lengthy process, but it can pay off for you in the long run, especially if you choose to work with the wrong one. Of course, the top-quality things to look for are:
Experience in IRS matters: Obviously, you want to go with an attorney who has lots of experience in dealing with the IRS and your particular type of tax crime.
Personal rapport: It goes without saying that you don’t want to work with someone you don’t click with or have to build trust with.
Fees and billing: What type of schedule and billing cycle will your attorney have? Will they charge by the hour, the project, retainer, or other means? Make sure you are familiar with what the attorney will be charging so there aren’t any surprises later on.
Aggressive representation: You want to work with someone who will advocate and fight for you as well as you would fight for yourself.
Successful track record: Overall, you should make sure you have researched the person’s background and have confidence and trust in this person, because you are going to be in for a bumpy ride otherwise. An attorney who is not well-regarded may be rightfully avoided.
How to Locate a Reliable Criminal Tax Attorney Near You
When searching for a criminal tax attorney, there are several strategies you can employ to locate a reputable professional in your area. First, conducting online research is an invaluable tool in today’s digital age. Search for "criminal tax lawyer" or "criminal tax defense attorney" along with the name of your city or state to get a list of local options. Once you have a list, visit their websites to learn more about their background, areas of specialization, and client reviews.
Referrals are another effective method of finding a qualified attorney . Ask trusted friends or family members who may have experience with criminal tax attorneys or even other legal professionals for recommendations. You could also reach out to your accountant or financial advisor as they may have contacts in the legal field.
In addition to online and referral searches, consider utilizing local bar association resources. Most state and local bar associations have lawyer referral services that can connect you with attorneys who have experience in criminal tax law. Simply call or visit your local bar association’s website to get started. You can also find reviews and ratings on attorney review websites such as Avvo or Martindale-Hubbell.
What to Anticipate When Meeting with a Criminal Tax Attorney
In most cases, a consultation with a criminal tax attorney will be your first step. Here’s what you can expect.
It is common for individuals to have no idea what to expect from their initial consultation with a criminal tax attorney. Fortunately, the appointment will be a conversation during which your attorney gets to know you and your situation better. He or she will want to know the details of your legal issue to the best of your ability, so ask questions, and avoid offering the attorney too much information that may confuse the matter (unless the attorney asks for additional information). It is important to stick to the specifics of your case, but you should feel free to ask questions that you believe are necessary to help familiarize yourself with your case.
A thorough consultation will require that you bring supporting documentation and any relevant information regarding your situation. For example, if you are being investigated for misstating your income on your tax return, you will need to bring copies of the relevant tax returns. You will want to bring these supporting documents to the initial consultation—waiting to obtain copies will only delay the time it takes to begin building your legal strategy.
Your criminal tax attorney should inform you of the price for a consultation beforehand, so there will be no surprise when you leave the office. In general, the consultation should be charged hourly based on the attorney’s normal hourly fee. If the attorney wishes to charge a higher hourly rate for consultations, he or she will inform you beforehand. Some attorneys do not charge at all for initial consultations.
The Price of Retaining a Criminal Tax Attorney
When considering what it might cost for a criminal tax lawyer, keep in mind that each case is unique, and the resulting counsel, advice or services should be, too. To that end, the fees can vary if one chooses to take a payment plan, hire a larger or smaller firm, or the case involves a simple answer or the conduct of a complex series of hearings and negotiations.
Fees can also vary if a large law firm adds a retainer when the case is accepted. It’s not unusual for the retainer to be larger for more complex cases involving lots of documentation or many hours of research, as this takes away from other work. Consequently, people who really need the help of a lawyer may opt not to hire any lawyer if it will cost too much, and they may be left to fend for themselves against the US Department of Justice. This is understandable for most, but can be devastating against the government. A great tax lawyer might not cost even half of a large retainer from another law firm.
Fees can also vary if the criminal tax attorney bills on an hourly basis rather than a flat fee. This can be a huge advantage in the right circumstances, but is dangerous in others. Hourly billing usually has an added "small business administration fee," which may sometimes be as high as 20%, but is generally 5 to 10%. Some firms will even require a non-refundable retainer, so if they do work for you and it turns out the case is so small it should have been left without legal representation, you still have to pay them hourly.
Some clients’ financial ability and risk tolerance dictate how they want to pay the fee. Some clients want to do a small amount of work, pay for it, do more work, pay for it, and so on until the case is resolved, while others are willing to pay for everything up front and get the case done.
Some criminal tax attorneys offer "limited service" arrangements. These can be a great value, depending on how it is set up. For example, in some cases the client pays for a consultation during lunch where the lawyer and the client discuss the situation over a sandwich. For a flat fee, the client simply pays the fee, then the lawyer works on the case until it is resolved.
Other criminal tax lawyers also take a "traditional" approach, charging a retainer for a certain number of hours of work per month at a set fee. All of these can be perfectly acceptable arrangements – let the client evaluate what is best for his or her own situation.
If you have money concerns, mention it to the criminal tax lawyer during the first meeting . Your prospective lawyer knows what he is doing. He or she will advise you if it is going to cost too much and offer ways around the problem. Most likely, the lawyer will create a new fee plan for you.
Are you worried about how much you are charged for working for a criminal tax attorney? Generally, the bigger your case, the cheaper you will be able to negotiate your lawyer’s fees because wealthier clients pay a lot more per hour than lower-income clients.
That’s just good business sense.
Lawyers often bill in six-minute increments, so be prepared for your bill to reflect a long phone call. If you pay for a 20-minute conversation, you’ll be charged for four tenths of an hour. If you are charged for two hours of billable time on a case that should have taken 20 minutes, then you may want to start complaining.
You need to be aware of whether the billable hours include activities that you don’t expect to have been included in the bill. Did you think faxing back and forth was included? Although it’s part of doing business, you may feel the lawyer should not have charged you for that work. But don’t complain, just find a different lawyer.
Some lawyers charge for faxes, or copies, postage, and even e-mail. Calling a lawyer’s office can be costly, as you would be charged for that phone call. That, of course, needs to be clarified. If your bill establishes a pattern when you call the lawyer’s office, you will know what is included and what the real cost of having access to that lawyer is.
Also be sure to inquire about whether there is a differential in fees between the senior partners and the other lawyers, and whether the senior partners get to review the bill before it is sent to you. Find out whether the bill is sent to the entire firm or if the junior lawyers are working on their respective roles, so that few need to read the entire document.
Remember that lawyers generally make more money by dragging things out, and the criminal tax fraud laws attempt to curtail that incentive. The rules governing attorney billing in the United States have become more uniform, and are designed to help prevent this from happening.
Keep in mind that lawyers are licensed and regulated by the separate regulations of their respective states. Therefore, each state will have its own disciplinary procedures. You can report ethical questions and concerns to the state bar association, and if you live in a small town like many, you may get your lawyer kicked out.