7 Interesting Reasons to Hire a Tax Attorney!

At some point of life, there arises a need to consult a tax professional for any tax-related matter. In general, no one would prefer to lock horns with the IRS. Once we pay the taxes, most of us prefer to stay away from the limelight of the IRS. But sometimes, the IRS has no other option but to reach out to people who have bad records with their taxes or failed to file their returns or other reasons. Out of the different options available, a tax attorney can be the first choice to get rid of tax-related issues efficiently. As it can be an arduous task to deal with this organization, most of us prefer an expert. Hiring such a tax expert would make it easier and quicker to get to the correct path.

7 Interesting Reasons to Hire a Tax Attorney
  • Client-Attorney Confidentiality

The first & foremost reason to hire a tax attorney is that the information you share will be treated as confidential with the help of client-attorney confidentiality clause. This plays a vital role especially during trails because they cannot be pushed to testify in court to divulge what information they know. Thus, you don’t have to fear about sharing your important details to the tax attorney.

  • Audits

Most of us get panicked when we get a notice of a tax audit and worry you that it might end you paying more taxes and penalties. The process might be arduous to handle all by yourself and it’s better to hire a tax attorney to represent you.

  • Specialize in tax laws

Another reason for hiring a tax attorney is that they specialize in laws and considering the fact that taxes are hinged on laws, it’s best to consult these tax experts. By specializing, it means that they have the expertise to point out the grey areas and provide you different interpretations of the regulations to your advantage.

Moreover, state & federal tax laws keep changing and you would need some expert to keep you posted with the updates; this is where you can utilize the service of a tax attorney. Also, every state has different regulations and only a tax professional can give you the insight for the codes of each state.

  • Right Communication strategy and saves time

There is a need for a certain amount of eloquence while communicating with the IRS. There are lots of chances to jeopardize the relationship with the agency and things get trolled upside down, if the communication goes wrong or if you don’t find the person who can communicate under pressure.

A tax attorney has the experience to deal with the IRS and communicate in a well-organized manner. Thus, hiring a tax attorney to act as your communication liaison would make sense. A tax expert can send emails or letters, do phone calls in order to communicate the person’s intent to the IRS and it would be conveyed clearly without any miscommunication. In turn, would save a lot of your time as there would not be any necessity to give a number of explanations.

  • Knows to deal with criminal charges

When a situation arises that the IRS files a criminal charge against you, the first step should be to hire a tax attorney. A tax attorney has the experience of dealing with such situations and can guide you on the same. Such charges are filed when there is a doubt of hiding the income from government or purposefully evading your taxes. The penalty could be severe and can even end you up in jail. Thus, if you want to reduce your punishment then a tax attorney can help you with it.

  • Knows to deal with missing returns

Sometimes it happens with all to neglect to file your tax returns, even if you’re a responsible person. Whenever you face such a situation and you want the missing returns to be filed then it is advisable to hire a lawyer to do it for you. There are chances that the IRS would demand an explanation and a lawyer can help you explain your situation to get you returns filed & paid.

  • Handles CP notice, estates & inheritances

When you get a CP notice from the IRS, it means that you owe a balance to the government. It would be difficult to read and understand the terms in the notice; a tax expert can help you with that.

You need to pay taxes not only for your income but for the money received through estates & inheritance as well. Sometimes, the tax would already be paid by the estate owners before passed to the heirs. You would need a tax attorney to know the information if you need to pay any taxes for the estate or if it is already paid.

Summing up:

You can avoid any trouble with the IRS, minimize the penalties or get details about the tax regulations, by hiring a tax attorney.

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Can The State Of California Help Us Predict Mortgage Trends?

James Dondero is one of the nation’s leading hedge fund managers. Unlike many of his high-flying Wall St. peers, Mr. Dondero remained based in Texas and has followed a conservative, value-driven strategy through times of boom and bust. He’s continued to deliver strong returns for his investors by sticking to the basics, not getting too fancy and only investing in assets which he thoroughly understands.

One of Mr. Dondero’s main areas of investment has always been real estate and the syndicated mortgage market. As one of the pioneers of collateralised loan obligations, Mr. Dondero has gained a profound knowledge of the country’s mortgage markets and the real estate markets which drive them.

Mortgage

Over recent decades, some trends have been hardening into discernible patterns. Many of these trends are first seen in the state of California years or decades before they become predominant in the United States as a whole.

California as the country’s leading indicator

People have often remarked that California is a window into America’s future. From fashion to consumer technology to automobile regulation and design, this maxim has had more than a grain of truth throughout the last 100 years.

But it has been equally true of demographic and market trends. No place in the country is there a more diverse, dynamic and vastly unequal real estate market than in the state of California. It’s there that we see some fascinating trends emerge. From some of the most expensive cities to some of the most downtrodden, California gives us a glimpse into what America’s future real estate market may hold.

The haves and the have-nots have kids, the middle class, not so much

Perhaps no other trend is so exemplary of California’s housing market than the gaping differences between markets. Take San Francisco, for example. Between 2012 and 2017, the median home price has nearly doubled to $1,158,000. That’s almost $400,000 higher than before the housing crisis of 2007.

Now, compare that with Fresno. There, the average home price is at just $205,000. But in Fresno, the median home price is still $75,000 below where it was prior to the housing crisis. This does make apartments in Fresno quite affordable. The median rent price is just $1,100, as cheap as some Midwestern cities. So what’s the problem?

The demographics of Fresno are almost the mirror image of those of San Francisco. Between 1990 and 2010, the population of whites in Fresno has declined by 40 percent. And there are indications that the rate of white decline is actually accelerating. The portion of Hispanics has exploded while those of Asians and blacks have stayed roughly the same.

However, in San Francisco, the Asian demographic has exploded while whites and Hispanics have stayed roughly the same and blacks have sharply declined. This is a pattern seen over and over throughout the state. Whites and Asians will not buy homes in areas that are heavily black or Latino. But whites and Asians are precisely the groups that make up the vast majority of the state’s and the nation’s middle class. They will not live in the only place they can afford to. This leads to middle-class flight from the state and an increasingly Brazil-like gulf between the underclass and the technocratic overlords.

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Crucial Mistakes to Avoid While Choosing a Financial Adviser

Trying to manage your money without the help of a professional financial adviser is like walking on a path without knowing where you are heading. Although it is possible for you to find the desired destination, it would be better if you have someone by your side for leading you out of the mess.

But, picking a good financial adviser can actually be a critical job for you. Leaving all your financial matters in the hands of a novice might end up jeopardizing your whole life’s savings. Thus, choosing a skilled financial adviser is the first and foremost thing you should do, if you are planning to spend your retirement days freely.

Financial Adviser

So, have a look at these following mistakes and try to avoid them, while hiring an adviser.

Not Doing a Proper Research:

It is true that as a commoner like you would find it difficult to know everything about the financial world. But, it does not mean that you have no other ways left to know more details about the financial adviser you are going to hire.

You would never go to a doctor having no degree; similarly hiring a financial adviser without any proper degree should never be an option for you. The most prestigious designation, which your adviser can have are the Certified Financial Planner(CFP) or the Chartered Financial Consultant(ChFC). If your adviser has both of the designations or any one of it then, it would become clear that he or she has some real-time experience of the financial world.

Interviewing a Single Candidate:

Interviewing a single candidate should never be an option to you if you are really willing to find someone to take care of your financial issues with an expertise. Thus, the first candidate you meet might sound great to you, but interviewing a few more of them would definitely help you to find the right guy.

Taking someone’s assistance in picking your financial adviser is good but, never let your judgment be biased with a referral. Don’t let anyone fool you with their mesmerizing talks. The real capability of a financial adviser should never be judged by the way they present themselves. On the other hand, their capability should well be reflected in their work.

Holding your Focus Only on Products:

Every company is prone to offer you a wide range of products, from good ones to the bad ones. It is true that each and every company has its specialization but, it does not mean that all offered products of a particular company will be good.

So, stay away from those financial advisers who are more willing to sell their products than getting you out of the mess.

Focusing on Payment Style Only:

The total cost of hiring a skilled financial adviser is indeed a matter for you to think, but do not compromise with the quality of work. Saving a few dollars might end up in losing a thousand dollars due to the working procedure of your adviser. There is no point in believing the fact that the cheaper options will always be better.

Be reasonable enough to understand the value of money and the proper balance between the service you are getting and the money you are paying. If you are only planning to save some money for your future needs in your existing mutual funds then, there is no need for you to hire some expensive financial adviser for that. But, if you are really willing to reach a certain financial goal, then make your decision of picking an adviser wisely.

Letting your Adviser Control Everything:

Your financial adviser might have the capability of controlling your every single step to the financial world. But, letting him or her every decision on behalf of you can never be a good idea. As we are talking about your money, you are the one who needs to pay more attention to taking care of your money. Advisers are your financial partners, who can show you the right path to achieving financial success, but depending too much on them might make you face some uncanny situation in the future.

Ask your adviser about every move he has decided to take. Let your adviser know that you are the boss and any ill treatment from his end should never be tolerated by you. Your consultant should always pay attention to your needs instead of paying attention to his own purpose.

Don’t forget to conduct a thorough research before hiring a financial adviser. Only a strong analytical capability of different personalities can help you to pick a skilled financial consultant. Try to avoid the above mistakes at the time of choosing an adviser to hire. If an adviser spends more of his time boasting about his company and their products then, this is the high time for you to bid adieu to that person.

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4 Things You Should Know Before You Hire a Tax Attorney or a CPA

There are times when having lots of questions popping into our mind related to tax matters and it seems like a mystery. When it comes to taxes, being too careful or too organized is a difficult thing to do. We might get tired of answering these questions within ourselves: Who should I approach and how to deal with it? I too faced such a baffling situation so thought of sharing it with you.

When my company was facing a legal battle against IRS, just like everyone I was also confused with whom to look for and what to do? I spent most of my time in my PDA, googled a lot and was tired of reading numerous reviews about CPAs and Tax attorneys. Then, after a wide research finally, I found a tax attorney who turned out to be an acquaintance, not only helped me to win the legal battle and throughout the entire phase as well.

People who get themselves trapped in these tricky situations, knowing the difference between tax attorneys or a CPAs will help in salvaging the situation and pride.

“Nothing is certain except death and taxes.”~ Benjamin Franklin

As rightly stated, you might not know when there will be a situation cropping-up for a need to hire a tax attorney or a CPA. In a general note, almost all businesses depend on tax attorney or accountants for a lot of business-related matters. So, it’s essential to know about the roles they perform before you hire one.

4 Things You Should Know Before You Hire a Tax Attorney or a CPA

Let us know the difference between a tax attorney and a CPA:

Who is a tax attorney?

A tax attorney can double up as a tax consultant and a lawyer to fight the legal battle against IRS. Tax attorneys generally pursue a degree in law and specialize in taxation issues. Certain people pursue their master in law while others proceed to obtain their CPAs license. A tax attorney can provide attorney-client privilege as well. They can be the source to look for; when you need advice regarding any complicated legal issues. Their USP:
  • Confidentiality (attorney-client privilege)
  • Expertise in decision making related to tax matters

Who is a CPA?

Certified public accountants (CPA) are people, who help companies in bookkeeping, financial planning, tax planning, budgeting, cost and asset management, and can help in in-depth business growth decisions. Unlike tax attorney, they don’t fight legal battles on your behalf but can assist in legal proceedings since they prepare the financial statements. They have more specialized pieces of training and credentials as well. Now that you know the difference between the two, let us look at different scenarios to know whom to approach.

What’s common between the two?

While there are differences between a tax attorney and a CPA, there exist a few similarities as well. Both perform similar functions related to basic tax matters. For instance:
  • Both provide tax planning support.
  • Both assist individual & organization regarding financial decisions based on possible tax benefits and penalties as well.
  • Both can help organization or individual to defend themselves against any tax-related issues.
  • Both have had an extensive education to practice in their fields.

Things to consider before you hire a tax professional:

Before you hire a tax professional, you need to know them well. Consider these points and ask the professional about the following:
  • Education
  • Expertise in the field
  • Tax strategies and preparation strategy
  • Fees (It’s important to know if it fits your budget)

Who and when to look for?

Look for the tax attorney when:
  • Look for a tax attorney when you are fighting legal battles against IRS.
  • When you want to file litigation on IRS.
  • The tax attorney is experienced in this kind of legal battles and can help you in payroll taxation issues, international tax lawsuits.
  • You are planning to start a business and require a legal counselling to understand the structure, type of entity and tax matters.
  • When you are under IRS criminal investigations.
  • You are bothered by visits at your place for tax fraud investigation.
Look for the CPA when:
  • When you want someone to handle your tax-filing for your organization or individual, as they specialize in tax preparation and planning.
  • If you’re looking for a holistic tax strategy to deal with professional & personal financial issues.
  • For business growth and investment plans
  • For general business advice, an accountant may suffice your needs.
  • To assist with audits for your firm.
  • For budgeting your business, cost and asset management.

Summing up:

Never take your tax-related issues to the next level and be careful when you’re handling them. Now that you have understood the difference between a tax attorney and a CPA, it will be easy for you to hire the right professional as per your needs.]]>