Tax practitioners expect a very busy year for tax attorneys in 2021. There are many factors that fuel this speculation including the new government and economic slowdown due to the COVID pandemic. Corporate clients are still working through the changes they have faced during the last one year of the pandemic and there have been several tax reforms that are keeping both the clients and tax attorneys busy. Continuing on the topic, let’s take a look at the factors that will underline the importance of IRS tax attorneys and how they will affect taxpayers as well. Read on.
Change in the Government
Less than two months after being elected as President of the US, Joe Biden has moved forward on major elements of the Build Back Better Program. These will be funded by significant changes in the tax law. The American Rescue Plan and American Jobs Plan are supposed to lower the tax burden on the lower income group but will increase income taxes for corporates. Corporates will need tax attorneys to understand and implement the changes to avoid any hassles or mistakes.
Related Blog: Procedural Map to an IRS Tax Investigation
Economic Impact of COVID-19
The COVID-19 pandemic has had a deep impact on economic, business, and social activities. The US government has introduced several plans and frameworks to support businesses that have been affected by the pandemic. Additionally, states that are struggling for revenue due to the pandemic and are at the bleeding edge of the revenue crisis will see increases in taxes and heightened enforcements, which will result in more aggressive audits and it will be harder to get reasonable dispute settlement offers. Tax attorneys will need to work harder to find ways to help taxpayers get relief from such tax issues.
2017’s Tax Reforms by Trump Administration
As the 2017 tax legislation by the Trump administration works its way through the system, it is expected to result in more litigation in the courts as most businesses are still coping with compliance to the reforms. The increase in litigation means that tax attorneys have extra court cases which will keep them busy.
The Bottom Line
The year 2021 is characterized by significant changes to the tax structure and taxpayers need to be prepared to avoid any mistakes that may invite serious action from the IRS. If you have any confusion related to tax structure changes and need professional help, look no further. The Law Offices of Nick Nemeth can help. We have a team of experienced tax attorneys in Dallas, Texas, with a proven track record of helping clients resolve IRS tax issues. To consult with one of our IRS tax attorneys, call (972) 635-4098 or fill out our contact form, and we will take it from there.