Let’s assume you talk to your attorney, and he advises you that you should create a reserve fund for taxes. Usually, it’s a good idea to listen to your attorney. If you don’t like his opinion, perhaps get a second opinion.
Of course, there’s also the Bozo method. The Miccosukee Tribe runs a successful casino near Miami, Florida. The tribe is exempt from taxes (it’s a sovereign nation). However, its members must pay taxes. They decided that they knew better than their attorney, and didn’t report distributions to its members or create a reserve fund in case their opinion was wrong. The Miccosukees filed a malpractice suit against their longtime attorney in a Florida court. The attorney had copies of his advice which pretty much (to this layman’s eyes) throws the malpractice case in the trash can.
Taxdood has more. Hint: The Miccosukee Tribe is the first nominee for the Bozo Tax Offender of the Year.
I’d add that if you don’t like the attorney that you’ve hired, fire him and find another one. It is always important to do your research when looking for tax help. There are many companies out there who have unethical practices.
http://www.consumertaxreports.org
This website exposes many of the large TAX companies – JK Harris, Tax Masters, Blue Tax, US Tax Shield…
Mike
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