Seven Indispensable Skills Required for Becoming a Successful Tax Attorney
Tax laws and codes govern just about everything in the financial arena – from the operation of a commercial enterprise to services provided by an individual. As a tax lawyer, you will need to provide assistance and advice to your clients on complex tax issues, ranging from business profits to personal income. You will spend a great deal of your time in figuring out ways to reduce your clients’ financial burden.
The good news is that taxes aren't going anywhere. But, the bad news is that tax lawyers have to face fierce competition just like most other lawyers. However, you can also get a chance to work with a tremendously diverse range of clients. You can work in law firms, corporations, government agencies, or start solo practice.
Apart from the significant amount of formal education, you are also going to need a set of different skills to be a successful tax attorney.
Here is a list of seven skills that will provide you with significant advantage over your competitors.
• Accounting and Mathematical Skills
Though an accounting or mathematics degree is no prerequisite to becoming a tax lawyer, you must have at least basic math and accounting skills. These may include basic accounting, derivatives, calculus, and statistics, as a tax lawyer deals with income tax, real estate planning, trusts and estates, securities, contracts, and bankruptcy. That said, who will hire a tax attorney with poor accounting and mathematics skills anyway?
• Creative Problem-Solving
Creativity and complex problem-solving are the most critical skills required to build a lucrative practice. Your clients expect you to find creative and practical solutions to their tax-related issues. Given the wide range of activities and areas covered under tax laws, these skills are a matter of admiration in this field.
In her short essay titled ‘Why do law students want to become tax lawyers?’ Linda Galler, a professor of Law, explains why law students with creative problem-solving skills are attracted to tax law. According to her, tax problems are more like puzzles. So, students with such skills often aim to become tax lawyers. “I am never surprised to see people interested in mathematics and science gravitate toward tax,” concludes Galler.
• Legal and Factual Research Skills
Legal and factual research is the central element in most tax law cases. As a tax lawyer, you not only have to interpret the correct meaning of a statute, but also find a feasible solution for a complicated tax problem. It is, therefore, necessary to develop strong legal and factual research skills. "As tax laws keep changing almost every year, it becomes necessary for a tax lawyer to master the skills of legal research," says Derek W. Kaczmarek, one of the leading Arizona tax litigation lawyers.
To put together a valid argument, you have to also take into consideration non-legal facts associated with your case. This is where factual research skills come in. Non-legal research can provide background information, find expert witnesses, or fulfill the required due diligence for your case.
• Analytical Skills
The process of finding a practical solution to every tax problem begins with an analysis of legal issues, opposition's argument, and the possible outcomes. Strong analytical skills are crucial for providing the best course of action to your clients. At times, you may also have to choose the most suitable outcome if your case has more than one reasonable solution. Apart from finding a practical solution, strong analytical skills can also help you explain complicated concepts to your clients in words they can understand.
• Writing Skills
Writing is an integral part of the legal profession. It includes everything from arguments to emails and letters. The capacity to explain legal opinions and conclusions is crucial for a good tax lawyer. Though tax-related cases rarely go to trial, good writing skills can help you prepare a persuasive plea bargain. They can also help you express all key points in a concise manner.
Apart from preparing courtroom arguments, writing skills also play an instrumental role in drafting legal documents. Tax lawyers often have to create complex legal documents such as contracts, settlement offers, plea bargains, and confidentiality agreements for their clients. Excellent writing skills can ensure that none of these documents have "holes" in them.
For example, structured finance requires tons of research and analysis. But, this complicated legal process also requires excellent writing skills as it involves writing memos and emails to fellow lawyers and clients. You may also need to create several rough drafts and share them with your colleagues during this process.
• Collaboration Skills
Since the onset of globalization, collaboration has become a necessity in almost all fields. The legal profession – especially tax law – is no exception to this trend. Tax lawyers often have to work in collaboration with other lawyers or non-legal professionals on everything from local to international tax-related issues. Collaborative skills enable a lawyer to work in a multi-party environment.
Though large corporations and commercial organizations have in-house legal staff, they often lack the tax expertise. So, they collaborate with tax law firms for assistance with their most complicated tax issues. For example, tax planning and financial structuring for a start-up may involve working with their in-house tax staff, financiers and investors, CEO, CFO, and COO, among others.
• Communication Skills
Excellent communication skills can certainly make you a better tax attorney. Tax lawyers usually have to work very closely with their clients, not to mention collaborators, on a daily basis. Besides, they also need to negotiate with state tax agencies and the Internal Revenue Service (IRS) officers on behalf of their clients. In either case, they need exceptional communication and interpersonal skills to present their case in a persuasive and coherent manner.
Considering the complex nature of the tax law and the fierce competition in the legal profession, becoming a successful tax lawyer is not as easy as it sounds. However, with the help of a few exceptional skills, you can climb the ladder of success. From generating new leads to collaborating with leading figures in your niche, these skills will help you establish a professional reputation among your peers.