Tax Relief Firms – Is it a Law Firm, Accounting Firm, Or Something Else?

The tax relief industry has experienced significant change over the past several years. As the economy worsened and Americans faced increased financial pressures, many people and businesses sought relief from the strain by not paying their taxes. In response, an enormous number of tax companies started sprouting up to absorb the unprecedented demand for tax services. Tax gurus on late-night TV and radio advertise, they’ll “settle your tax debt for pennies on the dollar.” Despite being tax geeks ourselves, we couldn’t make sense of which tax companies are good and which are bad.

Tax Relief Firms – Choosing the Right One For You

Under the broad umbrella of “tax relief firms,” there are three types of professional firms: Law firms, CPA Firms, and Hybrids. The first two types are self-explanatory, and since there’s really no industry-standard name for the latter category, calling them a “hybrid” is probably acceptable. But which of the three categories is right for you?

Law Firms

As you know, a law firm is made up of ONLY lawyers. A law firm may employ assistants, like paralegals, but a tax attorney is ALWAYS the person ultimately responsible for any tax work performed. All tax attorneys employed by a law firm are subject to the ethics rules and disciplinary action of their state bar. A tax attorney may generally represent any client in any state on any U.S. federal income tax matter.

The pros to employing a law firm are that you can feel comfortable that (i) an attorney is the one ultimately responsible for your tax matter, (ii) you have a clear method to file grievances (i.e., with the sate bar) if the attorney screws up, and (iii) lawyers are subject to strict ethics rules so they should work according to the highest of standards. The cons are that law firms generally are more expensive than the other two types of tax firms. Additionally, some law firms (or attorneys) do not focus solely (or even primarily) on tax related work, so they may lack some of the skill and expertise needed to fight the IRS. Just ask your attorney what other types of work he or she performs, and that will give you a sense of whether tax (and specifically, tax relief) is his or her specialty.

CPA Firms

At CPA firms, you will obviously find CPAs (i.e., certified accountants), but you may also find tax attorneys. Like law firms, it’s nice to know that at CPA firms, there is a professional behind the scenes who is ultimately responsible for any tax work performed on your behalf. The pros and cons of CPA firms are similar to those of law firms, except the method of reporting grievances with CPAs isn’t as well defined (but exists nonetheless) as it is for attorneys. CPA firms are generally a little less expensive than law firms.

“Hybrid Firms”

The hybrid firms include tax relief firms that are not law firms or CPA firms. Tax relief firms in this category employ a mix of tax professionals, including tax attorneys, CPAs, and so-called “Enrolled Agents.” Enrolled Agents are tax professionals certified by the IRS. They are neither attorneys nor CPAs, but are tax professionals that the IRS has concluded (either through examination or experience) that they are qualified to represent taxpayers before the IRS.

Many tax relief firms fit in the “hybrid” category. Lots of the tax firms that advertise on the internet and radio are made up of tax attorneys, CPAs and enrolled agents and thus are hybrid tax relief firms. The pros are that these companies generally charge less for tax relief work and are very good at performing tax services and working with IRS since tax controversy work is their specialty. The cons are that unlike law firms and CPA firms, these hybrid firms are largely unregulated, so there’s no clear channel (like, for example, the state bar for attorneys) to file grievances. Since they are unregulated, many of the hybrid firms are just plain bad and if they rip a client off, there’s little recourse, except the traditional routes of going to the BBB or other quasi-regulatory bodies.

Tax Relief Firms – Is it a law firm, a CPA firm, or a hybrid?

Here’s how you can determine whether a certain tax relief firm is a law firm, a CPA firm, or a hybrid firm. First, don’t assume anything just because an attorney or CPA works at the tax firm. As explained above, this is meaningless. Second (and the most obvious), just ask! A tax relief firm should have little problem telling you how it’s organized.

Common Qualities of the Best Law Firms

In my 12 years of practice, I have been employed with a wide variety of law firms. When I decided to open my own practice, I started thinking about the qualities that make up the best law firms. In determining the best law firms do you include things such as employee benefits, firm culture and employee turnover rates? Or do you focus on the qualities that affect a law firm’s most precious commodity – the client? My take on this is that the best law firms employ quality attorneys and staff with the highest of ethical standards and the desire to fight within their ethical bounds for their clients.

One key factor in having a successful law practice is an effective leader. A good leader will have a vision for the firm’s direction, a commitment to serving its clients, and a desire to find like-minded people that believe not only in the clients, but the brand of the firm. I have found in my practice that effective leaders can quickly change with success and growth. They often lose touch with the very people that helped them grow into a successful powerhouse. It is easy to go from a scenario of weekly partner/associate lunches to rarely, if ever, seeing a partner in the office. Effective leaders at the best law firm have a good understanding of the legal work coming out of the office, the overall satisfaction of its clients, and an awareness of the employees’ overall job satisfaction. With success and growth, it is easy to lose touch with these important factors, but good leaders will remain cognizant of these factors, even with exponential growth of the firm.

The best law firms also have compassion for their clients. When attorneys at these firms meet with clients, it’s never about sharing the attorney’s successes. Rather, it’s listening to your clients concerns, determining their overall goal through representation by the firm, and showing empathy towards their situation. Many attorneys look at their clients and see dollar signs. They look at the opportunity to bill or the total fee they will earn on a contingency for a huge settlement. These attorneys fail to recall one of the most basic ethical consideration of attorneys, acting in the best interest of the client. Because at the end of the day, all the billable hours in the world won’t make a practice successful If you don’t satisfy and take good care of your clients. Firms with this mindset often have high turnover rates because they make billing THE priority. They burn their attorneys out and bring in brand new attorneys and start the process fresh with them. This can easily lead to dissatisfaction by clients. They may not know from one month to the next which attorney is representing them.

Another key quality of the best law firms is a narrow focus on a particular area of law. The days of general practitioners is (or should be) gone. Laws are complex and can change in an instant depending on legislation or new case law handed down by appellate courts. The best law firms have focus on one area of law and become very good at it. They are aware of recent changes as well as developing changes in their area of practice. With such a narrow focus, they can change strategy in an instant and become the authority to their clients by showing their knowledge in a particular area of law. Beware of the lawyer who claims to practice in all areas of civil litigation. While it is possible, consider that opposing counsel may have a more narrow focus. They may have that golden nugget of information that can make the case a winner for them and a loser for your client.

There are a number of other factors to consider when trying to determine the best. That may be the discussion for a future article. But those discussed here are, in this author’s opinion, the most important factors to consider when trying to figure out what makes a firm one of the best.

Qualities of an Exceptional Personal Injury Law Firm

If you are involved in an accident whose occurrence was due to failure of another party to take reasonable care, the first step that you should take is to hire a personal injury lawyer. This will help you get compensation for the physical, mental, and emotional injuries you suffer due to the accident. However, for this to be possible, you will need to hire an exceptional attorney with all the relevant skills, experience, and knowledge to take on your case. Unfortunately, you cannot find such lawyers in any other law firm. They are only available in distinguished personal injury law firms. There are many law firms specializing in personal injury law. Nevertheless, there are those that stand out from the rest because they possess certain qualities, which makes it easy for them to win cases. These qualities include:

Qualified Staff

One important quality of an exceptional personal injury law firm is that its staff is qualified. Their staff should be knowledgeable on matters pertaining to this branch of law and have all the relevant skills and experience to see them through all injury lawsuits, specifically yours.

Capable of dealing with insurance firms

Most insurance firms do not like meeting claims. They will do everything possible to avoid compensating you for your injuries. An exceptional firm should have massive experience in handling representatives of insurance firms. The attorneys of such firms should be able to negotiating with the insurance company’s representatives so that they can reach an amicable solution and fair settlement or compensation for your injuries.

System of payment of contingency fees

A good law firm that specializes in this field understands that sometimes you might depend on the damages or settlement to pay their fees. Nevertheless, you are liable by law to pay for basic expenses. A good law firm however, will not force you to pay for the expenses until you recover a good amount or fair value of damages entitled to you. From there you can pay them. This is the ‘no verdict no fee’ or ‘no recovery, no fee’ or ‘no settlement, no fee’ type of system.

Specialization

To get an exceptional firm to handle your case, you must choose that which specialize in personal injury law. If finding such a firm is difficult, this is almost impossible, look for the firm with a personal injury law department. Such firms have all a lot of experience to help them deal with personal injury cases and have probably handled a variety of cases related to personal injury, as they are never the same.

Other specialization

Apart from the firm’s lawyers having good knowledge in the field, they should also have reasonable experience in litigation. They should have the necessary skills to carry out important motions. In addition, they should be skilled in paperwork, which the court and the insurance companies expect in civil cases and in insurance claims.

Use other professionals

The firm should be able to hire and retain the services of other professionals. To have all the necessary information to help them win the case, they will need the information that the government agencies have. This means they will need to hire private investigators to collect information as to the cause of the accident, the negligent party, and to protect evidence, which could solidify and protect your case.