Finding a Tax Attorney

As I mentoined before, we’re searching for a tax attorney. But this situation begs the question: how do you know the tax attorney you find is any good? My friends responded with answers that should help everybody:

Douglas Lineberry:

Ask another attorney. The bar association or lawyer referral services can be problematic. I believe the majority of attorneys that agree to take referrals from bar referral services genuinely want to help the folks that typically turn to a referral service (many of the referral services require the attorneys taking the referral to work at a reduced or no fee basis, or at least to provide a free initial consultation). There are, however, some attorneys that use the referral services because they cannot get any other work (and there is usually a reason for that).

Asking a friend or family member is a good start, but they are probably only going to be familiar with an attorney they know (being a friend of an attorney is not necessarily a reflection of how good that attorney is) or someone that they have worked with. If you get a referral to an attorney that friend or family worked with, the problem is that friend or family only knows if they had a good or bad experience. That doesn’t tell you anything about the qualifications of that attorney relative to other attorneys doing similar work in that geographic area.

The advantage to asking for a referral from another attorney is that they know other attorneys. For example, I don’t do family law work. However, I do know 2 or 3 exceptional family law attorneys in my county – people that I would hire if I ever needed representation in that area. If a friend or client asks me about a family law matter, I can save them a lot of time and energy by simply telling them who I would use.

With tax law in particular, if it sounds too good to be true is usually is. If you are talking to an attorney (or other alleged tax expert) and you are getting the idea that they are trying to tell you that you’ll never have to pay taxes again, try finding someone else. The sham artists will also go to great lengths to debunk legitimate planners. For example, they might say “well, you could get another opinion on this strategy from an attorney or a CPA, but they probably won’t understand it or they’ll tell you it won’t work because they don’t understand it and don’t want to admit that to you.”

Rose Hainey:

Chris,
You have found a good tax attorney when s/he has proven to your satifaction her/his ability to substantiate his/her expertise with clear understanding of the tax issues you are facing or want to avoid, depending on your tax situation.
Cheers!
Rose

Marc Aniballi:

I haven’t used one in a while, but the last time I did, the firm guaranteed their results. The agreement basically stated that so long as I had given them full disclosure of all relevant materials and situations, that any issues that cropped up would be their responsibility – not mine. Obviously, if there was new evidence brought forth, then I was back on the hook. This was not in the US though

Sam Cheris:

There are a variety of ways to verify your tax attorney’s credentials and capabilities.

1. Does (s)he listen to your questions and does (s)he explain in terms you are able to understand?
2. Does (s)he stay away from trying to sell you product?
3. Does (s)he have a Martindale AV rating?
4. Has (s)he received any honors from his peers, e.g. Super Lawyers, Best attorneys in America?
5. Have you gotten reference clients from him (her) that you know and respect?
6. Is (s)he willing and anxious to work with your current advisers (CPA, financial planner, etc.) or does he bad mouth them and want to be your sole source or steers you immediately to ‘his (her)’ team?

None of these questions alone will assure you of finding a good tax attorney, but taken together, they should weed out the unethical and the mediocre.

Robert Geurden:

If I recall, you’re on the West Coast, so I can write this without being too self-serving. My approach to giving tax or legal advice is to try to let the client know about both the advantages and disadvantages (or, if you prefer, risks and rewards) of a particular option, and, where possible, give more than one option. At the end of the day, it is the client’s decision whether or not to go ahead with the plan. That is, after all, what the ethical rules promulgated by the state bar associations require we attorneys to do. Non-tax lawyers may not always understand all of the details of the tax issues we mention, but one of my touch-stones for judging both my own work and that of my peers is whether the attorney tried to explain the issues. Fully explaining a complex tax issue in easy-to-understand terms takes time, though, and that time translates quickly into legal fees. Still, you should be able to get a sense during your initial interview of whether your attorney is inclined to consider the advantages and disadvantages and explain them to you.

I also agree that if it sounds too good to be true, it probably is – and the fact that the plan is promoted by a large firm does not necessarily mean that the plan will work. In fact, fraudulent tax plans promoted by large firms are more likely to draw the ire of the IRS since the settlement is likely to be large. There was a news article in Tax-News.com on May 25 about Sidley, Austin, Brown & Wood’s successor settling a civil claim with the I.R.S. for $39.4 million for allegedly promoting an abusive tax shelter. – Good luck

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