Choosing A Tax Attorney

English: Ewa Łętowska, Polish lawyer
English: Ewa Łętowska, Polish lawyer (Photo credit: Wikipedia)

Its tax time and that means you need a good Phoenix tax lawyer. A tax attorney can help you by managing your taxes, maximizing your taxes by finding exemptions and tax benefits and even ensuring that any IRS tax problems are managed quickly and effectively.  However, for this, you do need to find a talented professional tax lawyer and we have created a short guide just for this reason.

Step no 1 – Ask around with friends and family to find a reliable lawyer. People who are happy with their lawyers are always happy to recommend them.

Step no 2 — Check qualifications by accessing the American Bar Association website. You can also check whit the BBB and the State Financial Authorities.

Step no 3 — Set up an appointment with the lawyer and discuss your finances. Select an attorney with experience and knowledge in your area of taxation.

Step no 4 — Sign a contract with the lawyer. You may have to pay a small fee upfront to retain the lawyer. Hand over all the paperwork that is necessary for the lawyer but always check back with them to ensure that your tax application is complete.

Avoid hiring a tax lawyer who is your relative. You need a impersonal opinion of your taxes and relatives cannot provide that.

Do I Really Need to Hire a Tax Consultant?

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If you ever start your own part time business, keeping track of your finances is one of the needed keys to a successful business. In addition, learning how to read the tax laws is important as it allows you to keep your hard earned money. However, since the tax laws change frequently, it’s a good idea to hire your own professional tax consultant. It saves you on hassle and if you find a good one, they will do their job better than you ever could. So if you want your business to run smoothly, learn how to find a tax consultant.

First, ask your friends and family if they know someone suited for the job. A tax adviser that someone else knows is more likely to be trustworthy. If not, then it’s time to pick up the phone book and start interviewing everyone. Keep in mind that some people only want your money and aren’t necessary good for your business. Avoid these scammers. If you are interviewing a potential adviser and they demand to be paid for being interviewed, they are a bad fit, drop them fast. Be sure to interview several people before deciding on who to go with. Also, even if you hire someone that sounds good, there is a small chance that it may not work out. If it doesn’t, simply fire them and try again.

You may not need to hire a tax consultant if you are determined to do your own taxes. However, unless you plan to study up on all of the laws, you may make a mistake somewhere. Some people don’t want to get a tax consultant because it costs money, but the resources they save you are worth more than you are paying them. A good tax consultant will be able to save your business money in places that you may not have figured out yourself. Of course, a bad consultant can do the same thing, but they won’t follow the tax laws correctly, leading to trouble down the line. Before you choose a tax specialist, weigh the pros and cons first.

What Is An Advance Cash Settlement And When Is It Used

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When someone suffers injury an as a result of the actions of another individual, they often file against that person for a settlement. If the court finds in favor of the injured party, the defendant is liable to pay a settlement to that injured party. This cash payment will either be a single payment, or in installments over a period of time.

Payment by installment is preferred by many people. It is easier to manage the tax on smaller amounts, and, on occasion, a structured settlement by installments may not be subject to tax.

It may be that while the trial is taking place, the plaintiff finds themselves in financial hardship. If they are injured they may be finding it hard to find a job. In this case some choose to take advantage of an advance cash settlement, taken out against whatever may be awarded in the outcome of the lawsuit. This is a low risk option for the plaintiff as, if they lose their case, they are not obligated to repay the money loaned. However, the interest rates on these settlement loans tends to be high, so taking out a loan needs careful consideration.

If a plaintiff decides that they do want to go ahead with a loan, they should inform their lawyer immediately about their plans. This is so their lawyer is not surprised when the lender contacts the lawyer to find out how the case is going. Plaintiffs need to be aware that lenders only want to make loans to plaintiffs who have a good chance of being successful in court.

Advance Cash Settlement Pending a Lawsuit

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There are instances when a person is injured by the actions or negligence of another person, either emotionally or physically; and the injured party files for a settlement lawsuit against the latter. In case the court decides in favor of the plaintiff, who is the injured party, the defendant will have to pay him cash for settlement. This may come in the form of either lump sum money or structured settlement.

A structured settlement is a form of payment deferment which is given to the plaintiff in installments. This is more preferred by many people because of its various advantages. Because the structured settlement is in the form of smaller amount of cash paid on a certain schedule, taxes are not that significant. As a matter of fact, there are chances that the structured settlement may not be taxed at all.

However, during the trial period, there are times that the plaintiff may fall onto hard financial situations. Because most of them are physically injured, they may not be able to land a permanent job due to medical reasons. Thus, some opt to avail of advance cash settlement loan pending the lawsuit. This type of loan is being offered to the injured parties or plaintiffs of a settlement lawsuit, pending the litigation. This loan will be paid once the court grants the cash settlement to the plaintiff. What’s best about settlement loans is that once the borrower loses his case in the court, they do not have to repay for the loan. The drawback, however, is that settlement loans usually have very high interest rates, thus it is really advisable for the plaintiffs to think it through before finally deciding to avail a loan.

Once the plaintiff has finally decided on this, it is important that he informs his lawyer about the plan to apply for a settlement loan, as the lender will eventually contact his lawyer to get some information regarding the status of the case. Of course, the lenders will only grant the loan to those who have bigger chances of winning the case in the court. Moreover, it is also important to find a lender which gives the best interest rates and lowest fees.