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posted by admin on Feb 26

By Deborah Dillon

A power of attorney means peace of mind to a lot of people. What they don’t know is that there are several different types of powers of attorney and if you don’t have the right one it can put you and/or your family at significant risk depending upon your particular set of circumstances. An attorney can give you the details of each type of power of attorney and how they work in your state but here’s a quick description of the three most common.

The Most Common Powers of Attorney

• The Universal Power of Attorney allows one or more people to act on your behalf for any reason at any time.

• The Limited Power of Attorney specifies under what set of circumstances or during what period of time someone is allowed to act on your behalf for certain activities. As an example, it can give someone the authority to act on your behalf for all of your financial affairs in the event of your illness or incapacitation.

• The Specific Power of Attorney usually gives someone authorization to act on your behalf for one specific undertaking like authorizing someone else to sign the closing documents when you buy or sell a house.

Beware of the Universal Power of Attorney

So, why is it important for you to know what types of powers of attorney there are and the benefits and risks of each? The answer is that most of us use only the Universal Power of Attorney; thinking that we are protecting ourselves because we lack the awareness of all of the available options. Many people don’t realize a Universal Power of Attorney gives nearly unlimited power to the holder of this document. It gives that person the legal ability to at any time and for any reason access your medical records; withdraw funds from your bank or investment accounts; sign a contract in your name to buy or sell securities, real estate, an automobile or boat; take out a loan and on and on.

Limited Power of Attorney

A Limited Power of Attorney is an option for designated activities that kicks in only in the event of illness or incapacitation (which is valid as long as a doctor continues to certify the illness or incapacitation) or during a specific span of time. These limits reduce your exposure to possible excesses or bad judgments by those who hold your limited power of attorney.

Using Different Powers of Attorney for Maximum Flexibility

Another thing to consider when designing a legal backup system that will come to your aid when the unexpected happens is whether it is a good idea to overburden any one person with all of the responsibilities of keeping your life afloat until you are able to once again take control of it yourself. The person best suited to oversee your financial and small business matters may not be the best person to care for your pets, children or household. Consider that it would be overwhelming for one person to have to take care of all facets of someone else’s life for any period of time. Making separate authorizations naming several different friends or family members to undertake the various responsibilities of your life protects you more thoroughly.

Knowledge is Power

It is equally important that you provide those you have entrusted to act on your behalf in times of emergency or crisis with the information and instructions necessary for them to know how to help you. So, no matter how many authorizations or powers of attorney you may have put into place, you need to make sure that those who hold your powers of attorney know what you want and expect – from your business needs to the running of your household. If you don’t do this, it would be like hiring a builder but not giving him the plans for the house you want to build.

This process sounds daunting but it can actually be very easy and inexpensive with resources like those offered at http://livingsmartguides.com

Whatever tools you select to enable others to give you the help you need in a crunch, don’t delay putting these protections into place so you’re better prepared for whatever lies ahead.

About the Author: Deb Dillon is the founder and creator of LivingSmartguides.com She was diagnosed with a brain tumor and it changed her life completely and from this experience came LivingSmart, thorough legal guides to protect yourself and your family from life’s unexpected events by planning for them in advance. LivingSmart Guides address all important aspects of life – including medical, personal, household, financial, minor children, pets, small business, and estate matters. http://livingsmartguides.com

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Excerpt from: A Power of Attorney is No Cure-All

posted by admin on Feb 26

By Seomul Evans

For some people, the mere mention of the three letters I, R, and S causes a terrible case of dry mouth and shaky knees. Even for folks who have been timely and correct in their tax payments, the thought of interactions with the IRS that go beyond simply writing a yearly check can be very frightening. Add to that scenario the possibility of being audited and the whole prospect can be absolutely terrifying. Now you have an agent who is poring over every scrap of paper you’ve saved for the last year and you have absolutely no idea what to expect.

Unfortunately, the IRS isn’t known for its friendly, chummy agents who aspire to create a win-win situation for everybody, which is why you need to consider hiring a IRS attorney if you find that you are going to be audited. The primary benefit of hiring an IRS attorney is that the attorney will be able to manage all of the phone calls and other correspondence that you receive from the IRS. This means that you’re no longer on-the-spot, nervous and searching for words, every time you receive a call from an agent. Your attorney will also make sure that your rights are respected by the IRS. While you may be terribly intimidated by an IRS agent who calls or sends letters, your IRS attorney has dealt with the agents for many years and can assert himself or herself in a way that you probably aren’t comfortable doing yourself. In other words, the IRS attorney is going to be your advocate throughout the whole auditing process, making sure that your rights are respected and that you can get on with the rest of your life rather than laying awake and night and wondering who will be on the line the next time the phone rings.

Now that you know the benefits of using an IRS attorney, how do you go about finding one? Here are four keys to finding the right one for you.

1. Specialization. Every attorney specializes in a particular field of law, so you need to make sure you hire someone who specializes in tax law. When you’re interviewing potential IRS attorneys, ask them questions about your specific situation and ask them how much experience they have dealing with the IRS. Even if you don’t know how to deal with your specific situation, you can get a good feeling for the competence of an attorney by listening to what he or she says.

2. Trustworthiness. When you undergo an IRS audit, you will be required to share a lot of personal information, both with the IRS and with the IRS attorney. While you can’t choose which IRS agent to work with, you can choose which attorney to work with, so make sure you choose someone with whom you will feel comfortable sharing a lot of personal information, most specifically financial information. Get recommendations from friends and family whenever possible.

3. Background Check. Do some research on any attorney you’re considering hiring. Make sure that he or she is licensed in your state. If possible, get references from the attorney and follow up on them. Conduct a background check online. Find out how long he or she has been in the field and talk to other attorneys in your area to find out what kind of reputation he or she has with other professionals.

4. Fees. Before you hire any attorney, make sure you are very clear about what he or she will be charging you for services. Have the attorney put all terms and items in writing in case you need to revisit it later.

When you find yourself face with a possible audit, you need to call on professional help as quickly as possible. Find a trustworthy, competent, and capable IRS attorney in your area and get the representation you need.

About the Author: Seomul Evans is a Dallas SEO consultant for leading Fort Worth TAX Law Firm and contributor of Free Tax Articles.

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=377927&ca=Legal

Original post: 4 Keys to Finding the Right IRS Attorney

posted by admin on Feb 26

By Seomul Evans

Hopefully you will never require the services of a tax attorney, although it’s never a bad idea to consult with one on a regular basis in order to have him or her review your files and make recommendations. But if you do in fact require the services of a tax attorney, make sure you spend some time interviewing various attorneys in order to find one who can address your unique needs and with whom you feel comfortable. And before you choose to use the services of a CPA or bookkeeper instead of a tax attorney, remember that a tax attorney is required to keep all of your information confidential while a CPA is not. Here are some situations in which you may find yourself that require the services of a tax attorney:

1. Audits. This is the most obvious reason for hiring a tax attorney. If you find yourself subjected to an audit, the IRS has noticed a problem with your tax return. Whether you prepared your taxes yourself or hired someone to do it for you, now is the time to hire an attorney. An attorney can help you navigate the audit process and can advocate on your behalf.

While the IRS would like you to believe that tax laws are black and white, they really aren’t. A tax attorney knows this and can ensure that those various shades of gray work on your behalf by using loopholes and an intimate, up-to-date knowledge of tax laws. A tax attorney will also field any correspondence and phone calls from the IRS, which can remove a lot of stress from you and free up a lot of your time. IRS agents are intimidating and use strong language to scare taxpayers into simply giving them everything they ask for without putting up a fight. Tax attorneys aren’t intimidated by auditors, however, and can talk to the auditor in your stead.

2. Back Taxes. People who try to work with the IRS without the help of attorney typically end up paying a larger fraction of the taxes they owe than do people who get the help of a tax attorney. Because the information you provide to your attorney is privileged, you can confide in your attorney about exactly why you didn’t pay taxes in the first place. With that information, the attorney can work to get you the best possible outcome.

3. Business Ownership. If you own your own business, a tax attorney can help ensure that you set up your assets in accordance with tax laws. This means that you can potentially save thousands of dollars in deductions and can help you rest easy knowing that you’re doing everything by the book.

If you find yourself in one of the above three categories, you should enlist the services of a tax attorney right away. There is no way to overestimate the help that they can provide and the good that they can do on your behalf. Whether they simply answer a few phone calls for you and respond to a few letters or actually defend you in court, the services they provide can save you a lot of money and heartache. Audits and back taxes aren’t the end of the world, but they can sure seem like it when you find yourself in the middle of one of these sticky situations. They can be overwhelming and cause you to feel like the whole world suddenly has access to the details of your life. But a tax attorney can mitigate that awful feeling for you, and you’ll just feel more at ease when you realize that you have a professional advocating for you. And even if you haven’t had any IRS trouble, consider consulting with a tax attorney anyway just to make sure you avoid any potential trouble in the future. The cost of using a tax attorney is minimal compared to the cost that you might accrue by representing yourself in front of the IRS.

About the Author: Seomul Evans is a Online Marketing Services consultant for leading Fort Worth IRS Law Firm and contributor of Free Content.

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=377926&ca=Legal

Link: 3 Situations That Require a Tax Attorney

posted by admin on Feb 26

By Seomul Evans

If you chose in the past to forego the services of a tax attorney and now find yourself in trouble with the IRS, either because of back taxes, and audit, investment fraud, or anything else, now is the time to hire a tax attorney. And now means now. Don’t wait another minute. Waiting too long to address the issues can result in liens, garnishment, fines, interest, and even prison time. Here are four things you need to know when pursuing the services of a tax attorney.

1. Generalist or Specialist. The attorneys you find in your area will either specialize in a particular area or identify themselves as generalists. While generalists may be helpful in some cases, you need an attorney that specializes in tax law. And you need to find one with a good reputation and track record. Check him or her out to make sure he or she is in good standing with the bar association and with the IRS.

2. Fee Schedules. Tax attorneys aren’t cheap. They work hard to specialize in their particular area of expertise and they provide a valuable service to folks who find themselves in hot water with the IRS. Because of their value, they can get away with charging a lot for their services. So before you decide on one particular attorney, make sure you can afford his or her services. Fees will vary depending on how complex your case is, where you live, and the particular attorney you’re considering hiring. There are three typical fee structures.

• Hourly Rate. This is very common among tax attorneys. He will charge you based on the amount of time he spends working on your case. When you have your free consultation with him, he will be able to give you an idea of how many hours will be required for him to resolve the issues.

• Flat Rate. As the name suggests, the tax attorney will review your case and tell you exactly how much he will charge you.

• Contingency. In this case, the attorney will charge you a fixed percentage of whatever she is able to recover on your behalf. But you will be responsible for other expenses such as phone charges, copies, filing fees, court costs, and others.

3. Retainers. Regardless of the type of fee structure your attorney uses, you will probably be charged a retainer. A retainer is essentially a down payment for the attorney’s services and part of it will be paid back to you once the work is completed.

4. Other Questions to Ask. When you’re interviewing potential tax attorneys you also need to find out if the tax attorney will be handing off your case to someone else or taking care of it himself or herself. Handing it off to someone else shouldn’t necessarily be a deal-breaker, but you should ask to speak to the person who will actually be handling your case. Find out how many cases similar to yours your potential attorney has handled. How many went to trial and how many were settled outside of the courtroom? Are you comfortable sharing sensitive, personal, and financial information with this person?

Although the cost of hiring a tax attorney may seem prohibitive, the cost of not hiring a tax attorney is far greater. Tax attorneys can negotiate on your behalf such that you end up having to pay the IRS far less than you would had you represented yourself. They can advocate on your behalf as you interact with IRS agents, which makes the whole process much less intimidating and scary. So instead of asking yourself whether you can afford a tax attorney, ask yourself if you can afford not to hire one.

About the Author: Seomul Evans is a DFW SEO consultant for leading Ft Worth IRS Lawyers and contributor of Free Cyber Law articles.

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=367089&ca=Finances

The rest is here: 4 Things You Should Know When Hiring a Tax Attorney

posted by admin on Feb 26

By Seomul Evans

If you think that being in debt to the IRS is stressful in and of itself, try coming face to face with an IRS auditor or getting correspondence from the IRS listing your back taxes plus the penalties and interest that are quickly accumulating. In other words, if you find yourself in an IRS-related predicament.

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If you think that being in debt to the IRS is stressful in and of itself, try coming face to face with an IRS auditor or getting correspondence from the IRS listing your back taxes plus the penalties and interest that are quickly accumulating. In other words, if you find yourself in an IRS-related predicament, you need to deal with it immediately and you need to enlist the assistance of a professional. So if you find yourself in any sort of uncomfortable position with the IRS, the wisest move you can make is to hire a tax attorney. What might those positions be? Here are five:

1. You pay taxes. Yes, tax attorneys can help anyone, whether a business owner, owner of a large estate, or just a regular citizen. And it’s never a bad move to consult with one regularly in order to avoid future tax problems. Tax attorneys can help you organize your paperwork and keep your records straight, which can reduce a lot of personal stress.

2. You owe back taxes. If you or your business owe back taxes and find yourself unable to pay them in full, you need a tax attorney. There are many reasons why an individual or business might not file back taxes. Some simply don’t think the IRS will notice. Others choose not to pay taxes because they can’t afford to at the time. The truth is that there are employees of the IRS whose sole responsibility it is just to look for individuals or businesses that don’t file taxes. It’s a serious issue to the IRS and they will treat it as such. That’s why you need a tax attorney on your side.

3. You’re negotiating anything with the IRS. You may be negotiating back taxes or addressing an audit. Regardless of what it is you’re discussing with the IRS, you need a tax attorney working for you. Tax attorneys know the lingo. They know the loopholes. They know where the grey areas are in the tax law and how to make those loopholes work in your best interest. They can not only speak the language, but they can make sure you only pay the minimum amount required to the IRS.

4. You’re considering bankruptcy. There seems to be an overriding attitude in this country that filing bankruptcy can solve all of an individual’s financial problems. In reality, bankruptcy laws are very strict and often involve much more trouble than most people realize. A tax attorney can not only help you decided if you should file for bankruptcy but can also make sure you do it by the book.

5. You own your own business. Any small business owner should use the services of a tax attorney. It is quite difficult to keep paperwork in order, which can be a problem if you find yourself subjected to an audit. A tax attorney can help you organize all pertinent information so that it can be easily produced in the event of an audit. Organized paperwork not only makes you look more professional in the eyes of the IRS, but it also shows that you take the process seriously. A tax attorney can also help you determine your options regarding tax returns so that you can save the maximum amount of money and reinvest it in your business. They can also point out which deductions you’re not taking advantage of and can help you get the biggest refund you can.

Many people approach consulting a tax attorney with much trepidation, fearing that the cost will be prohibitive, but the fact is that the services provided by a tax attorney can actually save an amazing amount of money for you or your business in the long run.

About the Author: Seomul Evans is a Dallas Search Engine Optimization consultant for leading Fort Worth Tax Lawyers and contributor of Free Law articles.

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=367072&ca=Finances

Read more: 5 People Who Need to Hire a Tax Attorney