A Tax Defend Network is the name given to companies or tax attorneys who assist taxpayers with claims of tax evasion. This may include but is not limited to, civil, criminal and administrative suits. Such an attorney will be able to assist a taxpayer seeking an outcome in which he or she is not guilty of tax evasion. Examples of such a suit are those brought by an individual who was wrongfully accused of tax evasion. In this case, the attorney will pursue and obtain the results that the taxpayer is entitled to.
The Tax Defend Network is very different from the normal lawsuit financing businesses because their litigation finance companies do not finance the lawsuit. Their role is to handle and manage the entire case as if it were their clients. They will review all the information provided by the client and determine whether there is a chance of success. If so they will help to secure a reasonable outcome for the taxpayer. If the tax evasion has been discovered before the lawsuit is filed, the tax-defense finance company will advise the taxpayer to go no further and to proceed with the lawsuit. However, if the taxpayer is in fact caught with his or her pants down with tax evasion, the firm will advise the taxpayer to pursue legal action to get a judgment in which he or she must prove that tax evasion was committed.
A tax-defense network can also advise a taxpayer on how to plead, with respect to a tax evasion lawsuit. While many people assume that a defendant can only be declared guilty after a verdict has been reached, tax attorneys note that in some cases the defendant can be declared innocent even before a suit has been filed. In this case, the taxpayer’s lawyer would file paperwork in an attempt to have the lawsuit dismissed. If the case is allowed to proceed, the tax-defense network will supply the taxpayer’s lawyer with the information needed to represent him or her in court.
One of the main goals of a tax-defense finance attorney is to ensure that their client’s tax problems are resolved. While many tax attorneys work solely on a contingency basis, in other cases they may work on a retainer basis, which means that they receive a percentage of any money the taxpayer wins, as well as a portion of any fees the case is lost. (It is important to note that this percentage is in addition to the usual costs of representation.) Some tax-defense finance firms offer financing for certain types of lawsuits, including claims for compensation for accident injuries and medical malpractice. However, this financing is not offered in all cases. The lawyer for the client must be able to demonstrate that he or she is eligible for this financing.
Because the tax-defense network can advise a tax lawyer on various strategies for handling a tax evasion lawsuit, it is often helpful for both the lawyer and the defendant to consult with one another prior to proceeding with the lawsuit. This consultation is typically free, although some companies may charge a minimal administrative fee. In some instances, the defendant may be asked to pay part of the expense, while the tax lawyer will recoup his or her portion after the case is settled. Some tax-defense finance attorneys work exclusively with clients who have realistic settlement options. These clients may prefer to avoid trial and paying large taxes.
Many tax attorneys choose to work through tax-defense finance companies because it reduces the chances that the client’s tax problems will be exposed during the course of the case. In some cases, however, a tax-defense finance attorney may represent a client whose tax problems are so severe that the person may qualify for legal assistance from a professional tax specialist, rather than a tax defense lawyer. When tax issues are complex, it is often necessary to retain more than one tax lawyer. The costs of retaining a tax attorney can be prohibitive. (Even though tax defense lawyers receive payment when their client successfully pleads tax evasion, they often receive no advance payment for the first year they perform the services.) Many tax defense lawyers prefer working directly with their clients so that they can focus on building strong defense strategies rather than having to manage several different clients.