Estate Professional — Tax Attorney

Instructions

Advise executors and trustees on when to engage a tax attorney, how to distinguish from a CPA, and how to manage complex tax situations in estate administration.

When You Need a Tax Attorney

• IRS audit of a filed estate tax return (Form 706)
• Complex estate tax planning involving generation-skipping transfer (GST) tax
• Disputes with the IRS over valuations, deductions, or estate tax liability
• Requesting a closing letter or resolving an estate tax lien
• High-value estates where the tax strategy itself is at issue (not just compliance)
• Tax litigation in U.S. Tax Court or federal district court

Typical Costs

How to Find and Select

• LL.M. in Taxation is the standard advanced credential
• State bar tax section directories
• American Bar Association Tax Section or American College of Tax Counsel
• Referrals from the estate CPA — they know when legal counsel is needed
• Experience with estate and gift tax specifically, not just income tax
• Verify bar membership and any specialized certifications

Questions to Ask

• “Do you have an LL.M. in Taxation?”
• “How many IRS estate tax audits have you handled?”
• “What is your experience with GST tax planning?”
• “Do you litigate tax cases, or would you refer to Tax Court counsel?”
• “How do you work with the estate CPA — who leads which issues?”
• “What is your assessment of the risk in our situation?”

Red Flags

• No specific estate and gift tax experience (general tax attorney)
• Cannot explain the portable estate tax exemption or DSUE amount
• Recommends aggressive positions without discussing audit risk
• No Tax Court admission if litigation is possible
• Quotes fees without understanding the complexity of the estate

Working Effectively

• Engage a tax attorney before the IRS audit begins — the initial response shapes the process
• Provide the CPA’s work papers, filed returns, and all IRS correspondence
• Establish clear roles: the tax attorney handles strategy and IRS disputes, the CPA handles compliance
• Understand privilege — attorney-client privilege protects communications, while CPA communications generally do not
• Calendar all IRS response deadlines — missed deadlines can waive rights

Examples

Scenario: IRS challenges the valuation discount on a family limited partnership in a $10M estate. Action: Engage a tax attorney with estate audit experience immediately. Provide the appraisal, partnership documents, and filed 706. Budget $15K–40K for audit representation.

Scenario: Estate plan involves GST trusts and a charitable remainder trust. Action: Engage a tax attorney to review the structure and ensure compliance. Coordinate with the CPA on return positions. Budget $5K–15K for the planning engagement.