What Is a Tax Attorney?

At its most basic, the role of a tax attorney begins and ends with a specific focus on the legal ramifications of the detriment or benefit imposed by taxation. The fact that this is an entire field of study and pursuit, however, speaks to the depth and breadth of how these professionals help their clients with all aspects of life, business and reasons for capital creation. There are few places where the responsibility of operating by the letter of the law can have as great an impact on the way business is conducted than in Washington DC. Nowhere can individuals and companies take on the kind of risk assumed by dealing directly with the government — especially when it involves an uncertain tax liability , like what debt relief attorneys in Washington DC offer. Because of this, the duties of a tax attorney and the advantage offered to their clients extends way beyond arguing a case for lower taxes or a more favorable tax scenario (or the re-establishment of solvency via federal tax code implementation). They also partake in the following: • Review and implement the tax ramifications of business structures, both new and existing. • Identify opportunities for tax credits or benefits that can mitigate accounting liabilities. • Partner with accounting personnel to minimize potential tax liabilities. • Advocate on behalf of corporate or personal clients in disputes with the IRS or other state-run collection agencies.

Tax Attorneys in Demand in Washington DC

Demand for tax attorneys in Washington DC is fueled by the concentration of government agencies and groups operating in DC. Department of Treasury, IRS, the Office of Tax Policy and the Tax Court of Washington, DC and the United States Tax Court are some of the fundamental sources of tax attorney employment opportunities.
Tax attorneys are also employed by entities which have business with these government agencies. Additionally, tax attorneys are hired by large law firms, think tanks, general service providers, academia, and nonprofits based in Washington DC and some work in large accounting firms. The employment opportunities in Washington DC are relatively high for tax attorneys as greater than one in every seven professionals working in the District are lawyers.
Washington DC based law firms hire tax attorneys because they are needed to serve their clients who need to comply with both State and Federal taxes and avoid tax liabilities through tax avoidance strategies. Washington DC law firms, such as DLA Piper and Hogan Lovells, also hire tax attorneys to handle tax litigation. Law firms hire tax attorneys to help their clients successfully navigate tax code.
Law firms seek tax attorneys to work on transactional and tax planning matters. Tax attorneys are hired to minimize tax consequences of transactions and help businesses construct corporate transactions in order to benefit from tax exemptions. Tax attorneys also help corporations merge or restructure so that they can qualify for tax free treatment.
Tax attorneys in Washington DC focus heavily in helping their clients plan their business financial and estate plans to minimize death in the payment of income, estate and capital gains taxes. Tax attorneys work with their clients to ensure compliance with IRS disclosure requirements. Tax attorneys in Washington DC are well poised for opportunities as litigation becomes increasingly more popular as tax law becomes more complex.

Requirements and Competencies

To become a tax attorney, a Juris Doctor (JD) degree is required as well as specific credentials in tax law. Most tax attorneys have an L.L.M. in taxation (Master in Law) and a bachelor’s degree in business or accounting. Another path, accounting major with a master of taxation and a CPA designation, has grown in popularity in the last decade. These programs highlight the increasingly wide-spread use of technology in the industry, which has made some traditional methodologies obsolete. The depth of knowledge in tax law and accounting required to pass the bar is onerous and attainable only by the most dedicated law school students. Many tax attorneys choose this specialty based on high grades and LSAT scores which can provide an opportunity to transfer to a tier one law school and then to obtain admission to one of the "big four" consulting firms or a large law firm with a tax practice. The most prestigious large law firms and consulting firms look for mid-level and senior attorneys with a strong background from a top tier law school (Harvard, Yale, Stanford, NYU and Columbia).

Job Prospects for Tax Attorneys in Washington DC

When looking for tax attorney job openings in Washington DC, there are many law firms specializing in this field. For example, the law firm of Baker McKenzie has a reputation for providing its clients with in-depth knowledge of their business environments and crafting individualized plans to accomplish their goals. They provide a wide range of public and private clients with highly sophisticated legal representation that helps them combat financial crimes. This includes tax fraud, healthcare and other criminal activity.
A large number of Washington DC law firms provide free and paid seminars on federal taxation rules and changes to internal revenue service tax codes. These are excellent opportunities to obtain additional information on jobs available in this field. For those thinking about continuing their education, get to know some of the instructors at these seminars. This can lead to valuable insights and even job opportunities, as instructors, who are also lawyers, often have extensive legal contacts in the industry. Several websites that focus on taxes, like TaxProfBlog, provide listings of open positions by geographic location.
Another excellent resource for job seekers is the employment page of the National Association of Tax Professionals (NATP). This organization currently lists 39 open positions after gaining nearly 450 resume submissions in the last 30 days, giving job seekers a good idea of who is hiring. Not all open positions on websites related to the practice of tax law will be listed on sites, so networking with peers and industry contacts is invaluable for discovering available opportunities.

Expected Salaries

Salaries for Tax Attorneys in Washington DC can differ greatly based on a number of factors. Attorneys will typically earn a higher starting salary at law firms than they will at a corporation or a non-profit. A 0-3 year Tax Attorney at a DC law firm can expect to make anywhere from $143,000 (Clark Hill) to $160,000 (Arent Fox, Steptoe & Johnson). If the new attorney decides to enter the public sector, he or she can expect a starting salary of $80,000 (US Department of Justice). A 0-3 Tax Attorney in the private sector typically makes less than those who practice directly under the government, but still can earn upwards of $100,000 through government contracts (Alston & Bird) .
The salary scale increase for attorneys within the federal sector and in private practice tend to be similar, with salaries increasing at about the same rate regardless of experience level. Those who decide to remain with the government generally see a pay increase for each additional year they stay on the job. The Tax Attorneys in the private sector that tend to earn the highest salaries are those that manage or supervise others. At the federal level, seasoned Tax Attorneys ($135,000 +) can move up to the GS-15 pay grade if they have proven their worth. Unlike the DC private sector, there is no room for partnership at the federal level.

Career Progression in Tax Law

A tax attorney in Washington, DC has the opportunity to work with clients including high net worth families, corporations of all sizes, and tax exempt organizations. These clients have different legal issues, but the goal for everyone is the same; to legally minimize their tax burdens. Tax attorneys who succeed in this atmosphere often go on to hold high level positions within the firm, or break off to start their own practice.
Tax attorneys must focus on high client service standards and building relationships rather than billing hours because most of the time, it is not an option for a tax attorney to hire outside counsel. Instead, there is usually a "team" of tax and non-tax professionals that regularly reviews the tax lawyer’s work and offers input. The client contact often tells the tax lawyer what the tax consequences of a decision will be, as opposed to the other way around. The tax practitioner focuses their work on how to implement the structure so that it will withstand IRS scrutiny.
Some firms allow their lawyers to specialize in one area of tax, while others want their attorneys to be generalists who can work with various specialties in-house. There is also a segment of tax attorneys in Washington in the estate planning and trusts department, where the work is more geared towards generating life planning documents, wills, living trusts, and trust funding documents. In this area, there is also a subset of attorneys who only do probate work.
Corporate practices focus on tax planning for mergers and acquisitions and restructuring. Although many corporations use large law firms, there is still a place for capable tax attorneys in their tax departments, although they usually do the research and analysis without any of the client contact. Some tax attorneys also work with privately held companies or tax-exempt organizations.
Tax controversies are the next subset of Washington, DC tax attorneys. The Tax Division of the Department of Justice is located in this city and handles most tax litigation, although the IRS has a litigation division of its own. In DC, most firms also staff litigation teams that handle individual cases or joint litigation teams and certain tax controversies for the government. Tax practitioners also help resolve and settle disputes, but issues such as appeals are handled mainly in house.
Tax lawyers in the federal government have a unique set of opportunities, although there is not as much room for professional growth and advancement. Most of this type of work falls under the IRS practice, but there are at least two government offices that hire tax lawyers in DC: The Treasury Department and the Government Accountability Office (GAO). Tax lawyers with specialization or special skills and experience are in high demand at GAO, and most of the positions pay well.
Tax lawyers in Washington, DC have the potential for career advancement in various areas. It is not uncommon for a tax attorney to end up in an executive position at a corporation, the government, or with a charitable organization. The leadership roles available outside of a law firm, particularly in government agencies, are generally at the senior executive level, so only highly experienced, established tax attorneys are ever considered for these positions.

Challenges and Opportunities for Tax Attorneys

Challenges Faced by DC Tax Attorneys
In addition to the demanding nature of their work, tax attorneys also face challenges that are unique to their profession. For example, the field of taxation is continuously evolving and changing on the federal level. Laws are passed, regulations shift, and new court decisions impact how taxes are calculated, how much is paid, and any applicable exceptions or special rules. Tax practitioners are expected to be in the know on all of the latest developments and to have a thorough understanding of these changes as they relate to their clients. This forces tax attorneys to constantly learn and adapt to the ever changing environment and adds an additional burden to the responsibilities faced by tax practitioners.
Additionally, the field of tax law is challenging due to both its complexity and how much it varies by jurisdiction. Clients are often expecting a quick and easy answer to their questions but, in reality, there may be numerous possible outcomes depending on a variety of factors. Most individuals, including those representing a large company with sophisticated counsel, do not have a deep enough understanding of tax law to sort through the many different interpretations and possibilities. Tax attorneys should be prepared not only to sort through these possibilities themselves, but to explain them to their clients and manage their expectations.

Professional Development for Tax Attorneys

Professionals who are working as tax attorneys in the Washington DC area commonly cite the importance of networking in the Greater Washington DC area and continual learning.
Many tax attorney jobs require participation in local and national associations of tax practitioners. Networking with judges and legislators is also often a key component of tax attorney work.
Active tax practitioners are often most interested in participating in groups such as the Tax Section of the American Bar Association. Other networking groups of interest to tax attorneys in DC include The Tax Coalition and The Young Tax Lawyers Committee of the Tax Section of The Virginia State Bar.
Attending local events is also very important for tax attorneys. For example , the District of Columbia Bar regularly produces events of interest to tax practitioners such as Taxation Section Browns Bag Lunch: Pro Bono and Continuing Legal Education.
In terms of professional development, continuing legal education (CLE) is very important for many tax attorneys in the DC area. The American Bar Association frequently hosts tax-related educational programs. The IRS is another source of CLE classes of interest to tax attorneys. In addition, many Washington DC law schools (such as the Georgetown University Law School) offer CLE classes on various tax-related topics.
Networking and continual learning are thus important considerations for the successful tax attorney in Washington DC.