Tax Representative vs. Tax Attorney: Who Should The Taxpayer Choose?
Many taxpayers are aware that they have to pay their real estate taxes on their properties or the town in which they reside in will penalize them. This can be either from a late fee in the form of a percentage or even having a lien placed on the property. Now, most taxpayers know they have the right to reduce their property tax assessment by filing a tax abatement application. Although it is possible for the average taxpayer to complete the tax abatement application without representation, the process for actually obtaining a reduction in taxes has just begun. The below three points are important for taxpayers to know in choosing between a tax attorney and tax representative for assistance:
1. Many tax attorneys will charge a fee to discuss the tax abatement case in addition to a fee if an actual tax reduction is received. Most tax representatives only receive a fee contingent upon successfully reducing the client’s taxes. 2. If an appeal application needs to be filed, certain states, such as Massachusetts, allow for the tax payer, an attorney, or a partner appearing on behalf of a partnership where they are a member, to appear in front of the appellate board. Tax representatives are not permitted in Massachusetts at the appeal level where the amount being contested is above a certain level; whereas they are permitted in states like New Hampshire.
3. Tax representatives are limited in what they can offer besides representation in tax abatement cases; whereas tax attorneys can assist taxpayers with additional things, such as transfer of ownership, questions regarding the IRS, and business transactions.
Every tax abatement case has its own idiosyncrasies, and the tax professionals at Allobar Strategies can help taxpayers determine if tax representation is all they need or if a tax attorney is required, based on the circumstances of the case. Only the taxpayer knows their goals besides obtaining a tax reduction for the properties they own.