The Smart Attorney’s Best Friend: A Tax Professional – Part 1

Introduction

How often do Tax Professionals see clients after a legal proceeding and have to help them deal with the aftermath of the decisions that are already in place? If we had been in on the case before the judgments were made we could have helped them avoid a big tax mess.

Our goal today is to learn how to establish a liaison with the local Bar Association and/or individual Attorneys to consult on tax implications of various legal matters before judgments or court orders are issued.

Let’s address the pros and cons of this situation.

The Pros

1. Income stream – How much income can you expect from this? At the outset, not much, as you will need to build a reputation. This has building potential as you grow it. Do you already have an arrangement or contact with some of the Attorneys in your area? They are a great place to start.

2. Referrals – Once you show your expertise you can expect referrals from your partner Attorneys for other tax related items, also you could be cross referring clients to partner Attorneys. Can you speak about this subject at a local Bar Association meeting?

3. Market share – Is there a market out there for this? Yes! You need to let the area Attorneys know this is a service you offer. This is a growing market and the sooner you get your name out there, the more market share you will draw. You have to educate the Attorneys in your area as to what you can do for them. Some of you may already be in a partnership (formal or informal) with some of your local Attorneys, that is great!

4. Name brand improvement – You are more then tax returns! Just as you get your best tax clients from word-of-mouth referrals, you can get your best tax planning, representation and conflict resolution clients the same way from their Attorneys.

You have the expertise, experience, and talent to be able to take care of work Attorneys would probably rather farm out anyway.

The Cons

1. ROI – How much will you have to invest to do this? Training staff, marketing, billable hours vs. building up a reputation.

2. Liability – Will E&O cover this? Will you be covered by privilege? Get Kovel letters in place at the outset. Must have air tight engagement letters for each type of consulting to be done for both the client and the Attorney. Are you employed by the Attorney or by the client? Who can the client seek recourse from? (See sample engagement letters in the appendix)

3. Ability to fulfill commitments made – do you have enough staff that would be willing to do this? Should it or must it just be EAs? What kind of additional training will they need? Will they need to be year round on contract? What kind of compensation will they get? How far are you willing to take your commitment? (Simple individual consults, written opinions, going to court, related tax preparation, or just training the Attorneys and accepting referrals from them)

4. Too diversified – is this a market you want to go after? What is the upside for your business? Is this something that has been done elsewhere? Could you build on their model instead of reinventing the wheel?

What types of legal matters can we realistically help with?

▪ Divorce
▪ Child Custody
▪ Bankruptcy
▪ Cash lawsuit settlements
▪ Business start up
▪ Estate planning
▪ Criminal Investigations
▪ Identity Theft

Part 2, Divorce

In accordance with Circular 230 Disclosure

Anything and everything taxes. I also write the Louisiana State book to go to our new Income Tax Course learners and the state-wide training for upper level Tax Professionals. I am an Instructor of all levels of tax related classes. I love to teach and write as well as taking the absolute best care of my clients all year round.

26 years in Law Enforcement (13 in the Air Force and 13 at the Bossier City PD), 20 years doing income taxes professionally.
My goals now are to spend many years being my 3 grandchildren’s MeeMaw, taking the absolute best care of my clients, and continually learning new things.
Specialties
Taxes! I specialize in military, states, small business, and rentals.
The postings made on this site are my own and do not necessarily represent HR Block’s positions, strategies or opinions.

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