What a Tax Attorney Does
The tax attorney profession involves advising and representing clients, usually high-net worth individuals or businesses, in understanding complex tax law issues, and resolving those issues with the relevant tax authorities. Tax attorneys must have a comprehensive understanding of federal, state and local tax laws, including statutes, regulations and administrative rulings.
On a daily basis, tax attorneys conduct legal research, write legal memoranda, provide written and oral legal opinions, and prepare tax planning and structuring proposals. Tax attorneys also might draft proposed legislation, new regulations, comments for inclusion in the record on pending proposed regulations, and guidance in ruling requests to be issued by federal or state taxing authorities.
Tax attorneys have a variety of duties in matters involving their clients’ tax issues, including performing all aspects of legal research, providing advice to clients on all aspects of tax law, including estate tax planning, gift tax planning, wealth transfer planning, and international tax planning, structuring and reviewing business transactions and tax compliance documents, representing clients at IRS and state tax authority audit and administrative appeals proceedings, and preparing tax returns and other tax forms.
Tax attorneys practice at law firms, accounting firms, government agencies, and corporations. Tax attorneys in law firms usually represent wealthy individuals, business entities, and charities in connection with their federal and state taxes. Tax attorneys at accounting firms and in government have other duties . Accountants and economists provide their services as part of a tax practice group, while government tax attorneys represent the government by working in tax policy, litigation, and other areas within their agencies.
Tax attorneys must be licensed to practice law in the United States. Many tax attorneys start out by earning a bachelor’s degree from a four-year accredited college or university, obtaining a Juris Doctor (J.D.) degree from a graduate or professional law school, obtaining a graduate (master’s) degree or certification in tax law, including one of many types of Advanced Degrees in Taxation (LL.M or MST) or Certifications, such as the Certified Public Accountant (CPA), or Certified Financial Planner (CFP), passing the bar exam for the jurisdiction in which they practice law, and meeting any continuing education requirements established by law or the local or state bar association.
Different jurisdictions have slightly different license requirements for tax attorneys. For example, in Chicago and Illinois, lawyers are needed in a range of areas, including tax law, and in-house counsel must pay license fees and comply with continuing education requirements. In Washington, D.C., the same requirements apply, along with the District of Columbia Bar Association’s voluntary certification program lawyers may wish to participate in.
Tax attorneys must be highly organized and detail oriented and must communicate clearly, both orally and in writing. Tax attorneys must also be able to juggle many tasks at once, and have solid technical skills and a comprehensive knowledge of the Internal Revenue Code and regulations, state tax codes and regulations, and other sources of tax authority that govern their clients.
Current Job Market Trends for Tax Attorneys
The demand for tax attorneys in Washington, DC has remained relatively stable over the past few years. Tax attorneys continue to be an in-demand niche of the attorney job market; they frequently turn up among the "hottest" and "most sought after" skillsets within the legal industry.
The majority of employer types currently hiring tax attorneys in DC include law firms, large multinational corporations, government agencies, accounting firms, private businesses, non-profit organizations and charitable foundations. Most large law firms in the region employ at least some tax attorneys, with several consisting of two- and even three-digit tax attorney bases. There is a fair number of larger, internationally prominent CPA firms with offices in the region that also employ tax attorneys. The most common types of employers of tax attorneys in metropolitan Washington, DC and nearby Northern Virginia are private law firms; most of these are in the DC area proper, but there are some tax attorney jobs in Northern Virginia as well. Most private law firms in the metropolitan region have only a few tax attorneys each; most have only one or two practicing tax attorneys. There are, however, some exceptions, such as firms with dedicated tax divisions and groups. For instance, one of the largest law firms in the city has a tax group of 90 tax attorneys; it is the largest tax practice in DC. In addition, some larger firms without quite so many tax attorneys nonetheless still employ a lot of tax attorneys: a firm like Hogan Lovells, for instance, employs about 70 tax attorneys. Houston-based Baker Botts LLP, with offices across the US and more abroad, has about 50 tax attorneys. State and federal government agencies typically hire tax attorneys directly, while certain local agencies use contractors to fill their needs. Many government agencies’ benefits and disability programs focus on federal income tax issues such as federal taxation of benefits. Utilities and other companies with wide consumer bases are often a prime source of tax lawyers; phone company tax lawyers in particular are common. Nonprofit organizations, especially educational institutions such as seminaries and colleges, are another major source of employment for tax attorneys in Washington, DC. Of course, the largest employers of tax attorneys in metropolitan Washington, DC are large law firms and multinational corporations. First, the region is home to one of the largest concentrations of large law firms in the country; many of them are active in the Washington office job market. Second, Washington, DC is home to the headquarters of a number of the largest multinational corporations in areas such as banking, telecommunications, shipping, transportation, food and energy. In addition, multinational corporations with relatively fewer resources will frequently have their main offices in more centrally located regions. For large companies that do not want to lease enormous office spaces, suburban Virginia may be a natural fit as a more affordable location; thus, there is still a significant number of large corporations and law firms with sizable tax functions operating out of Northern Virginia.
Education and Qualifications Necessary to Become a Tax Attorney
While the DC area demands the best and brightest minds in virtually every field, law and legal expertise are of particular importance here. Tax law is particularly complex, so it’s vitally important for tax attorneys in the Washington DC area to be educated, trained, and qualified on a level that exceeds other markets. As this is the nation’s capital, there will always be practitioners, educators, and attorneys from around the country, so the area has the highest standards in the country.
Law schools in and around the DC area are numerous, from the well-known George Washington University Law School and Georgetown University Law Center to the rather high-profile Howard University School of Law. The bar exam in the District of Columbia has the second lowest passing rate in the country (a mere one in three applicants), making the need for a top-notch education a matter of necessity.
One very important aspect of practicing tax law in the DC area is that any tax attorney is always well-advised to remain certified by the State Bar Association. However, in particular, almost all of the top-tier law firms in the DC area will literally insist that any attorney be a member of the Florida Bar. The Florida Bar is now regarded as one of the toughest to pass in the country, so passing it is a clear mark of excellence and achievement. A tax attorney can also seek to be certified by the Florida Bar in Taxation, though there are other certifications available, such as The Board of Legal Specialization’s certification. The Board of Legal Specialization has a highly rigorous process regarding tax law, which combines the best training from the Bar and also seeks to test those practitioners who apply.
Essentially, any applicant to become a tax attorney in the Washington area must meet top quality education requirements, pass a highly selective bar exam from the District of Columbia, and also be either a member (or actively seeking to become a member) of the Florida Bar (or another similarly strenuous new bar). Practitioners may also seek outside, additional certifications beyond the Board of Legal Specialization, though they tend to be optional as assessments of excellence in a specific area of practice, such as taxation.
Key Skills and Competencies
As a tax lawyer hoping to find the right job opportunity in Washington, DC, it is critical that you consider the specific skills that employers are seeking from candidates: Analytical Skills. Tax law can be highly abstract and requires a top-notch lawyer to provide the issues at hand great analysis. Sometimes this analysis may come in the form of developing a new concept under the law or focusing on how the law applies specifically in your client’s situation. Attention to Detail. When representing clients before the IRS and large state tax authorities, close attention to detail, writing accurate proposals and thinking through all applicable tax laws will make the difference between a favorable determination and a letter of reprimand. Tax Law Knowledge. The primary job is legal research, writing and litigation (when necessary). Tax lawyers must understand statutes, tax cases, administrative guidance and transfer pricing as well as any similarities or differences with accounting rules. This is crucial for a fair presentation before a U.S. federal or state tax authority.
Networking and Career Development
For attorneys who have practiced all over the country, our nation’s capital is an exciting place to be. Tax law is of particular importance in Washington, DC, where those in the field can meet and connect with a range of influential political actors that create, adjudicate and enforce tax policy. Here, tax attorneys will find opportunities working for the government, in the private sector or in leading nonprofits. The variety of organizations in the region means that jobs in tax law are abundant—as long as you know how to spot them.
For DC professionals, networking is everything. The area is dense with all levels of tax attorneys, meaning that there is no shortage of people who will be willing to share their favorite restaurants, secret job opportunities and go-to career advice. Listservs and organizations including Tax & Toast, a monthly speaker series on developments in tax law, allow tax attorneys of all experience levels to get involved, meet new people and learn about new opportunities.
The work of many public interest organizations focuses on tax law, such as the Washington Area Legal Services Alliance (WALSA) and the Center for American Progress. These groups regularly host events, from panel discussions to community strolls, which allow DC-based attorneys to earn volunteer hours, share their knowledge and make new contacts . The lively social scene around these events makes them ideal places to meet other attorneys off the clock.
Student organizations from nearby law schools and universities like Georgetown and GW also provide networking opportunities, such as conferences and events that often feature guest speakers with expertise in tax law. Alumni associations keep members connected, making it easy to reach out for career guidance.
Writing for a legal publication or speaking at a seminar are two great ways to boost your visibility in the DC market and move up the ranks. Writing for publications like Tax Analysts or the D.C. Bar Taxation Community’s Tax Views blog is an excellent way to build your portfolio and gain recognition in the field. On the other side of the coin, speaking at seminars or networking events is a surefire way to establish yourself as an expert in your field.
Although networking does not come naturally to everyone, nearly every professional working in tax law in DC will agree that it is key to success—especially when first starting out in a competitive market. Those keen on establishing a lifelong career in the area would be wise to jump in and start getting to know the many people who dwell in DC.
Salary and Job Benefits for Tax Attorneys
Tax attorney job opportunities in Washington, DC come with competitive salaries and a strong benefits package often included in the overall compensation. The majority of tax attorneys working in Washington, DC earned between $90,000 and $160,000 a year, with tax attorneys at large law firms or corporate tax departments earning a minimum of $120,000 per year, according to Robert Half Legal. Other beneficial perks included a variety of bonuses and perks, from health insurance to employer-matched 401(k)s.
Law firms and corporate tax departments consider tax attorneys who have a strong base of practical experience in handling IRS and state audits. Additional benefits that may be offered include assistance with professional development and education such as financial and estate planning, tuition reimbursement, transportation subsidies, and discounted membership to bar associations. Tax attorneys have the potential to make excellent salaries and enjoy many different perks and benefits while working in Washington, DC.
Challenges and Opportunities Facing Tax Attorneys
As we look around at the job market for any profession today, we see challenges – from the slow economic recovery to the large numbers of Baby Boomer professionals hitting retirement age at the same time that the hiring rate hasn’t fully rebounded. But for highly trained, specialized professionals like tax attorneys, the woes of the Great Recession are left behind as they are sought out by large, prestigious firms. Even in a down economy, the legal services market remained strong for tax attorneys. The only caveat was an overabundance of competition. While the hiring rate has improved, competition remains strong. Today, there are still a large number of tax attorneys all competing for the same limited positions of high prestige at large firms.
Specialization is a buzzword in many fields, including law. But in the field of taxation, the hot issue for specialization is international versus domestic tax . Concepts like BEPS (Base Erosion and Profit Shifting) and transfer pricing are becoming critical to the practice of either type of tax law. This is driving more and more law school graduates to pursue and eventually specialize in one or both, but as the number of candidates increase, the job market for these extreme specializations also stretches. Many government and corporate employers are beginning to hire international tax specialists, as the impact of globalization has increased on the tax law.
For experienced tax attorneys, the most common career path at this point in their careers is to manage or establish a practice group, either at their current employer or with a move to a new employer. Senior tax attorneys are in high demand for these very positions, making it a significant growth opportunity for any attorney that is interested in moving into management.