Let’s face it: no one looks forward to paying their taxes every year.
From doing impossible calculations to wondering why you’re having to part with so much of your paycheck, it’s easy to feel frustrated when tax season rolls around.
But sometimes, issues with your taxes go way beyond the standard amount of annoyance. You’re now facing new tax consequences that you didn’t expect. Perhaps you’re also being audited, or maybe the IRS has accused you of lying on your tax return.
You’re considering hiring an IRS tax attorney to help you through this challenging time.
But is doing so the right move, and does your current situation truly warrant the help of a legal professional?
Keep reading to find out when working with a tax attorney is the right move.
1. You’re Being Audited by the IRS
Even though the official auditing rate of the IRS has declined in recent years, some people simply get unlucky.
One of the biggest reasons why you should work with tax lawyers is if you’re being audited by the IRS. Hiring an attorney doesn’t mean you have “something to hide.” Instead, it helps you to protect your money and ensure that the amount that you do owe to the IRS is a fair one.
Legal representation means that you’ll likely be able to pay far less in tax debt that an audit uncovers than you would if you tried to handle things on your own.
An attorney can help you with things like installment payment agreements, offers in compromise, and develop a strong explanation of economic hardship.
Plus, facing an audit alone is incredibly intimidating. The right representation can help negate that stress.
2. You’re Facing a Criminal Accusation
It should go without saying that you need to hire an IRS tax attorney if you’ve been accused of committing tax fraud.
However, you might be surprised by the number of people who feel they can defend themselves.
Don’t be like them.
If you’ve been accused of willfully falsifying information on your tax return, withholding income, or claiming false tax deductions, you need an attorney.
This is especially true if you’re being accused of using a fake or stolen social security number, if you’ve failed to file your tax return, or if your business failed to report cash payments to employees.
Learn more on this IRS website page about other common examples of tax fraud.
And remember: saving a little money isn’t worth potentially years in jail and high fines that could easily destroy your financial future.
3. You’ve Opened or Acquired a Business This Year
Not all reasons for searching for a “tax attorney near me” online are bad ones.
Sometimes, you should work with a tax lawyer because doing so can help you to maximize your deductions.
For example, maybe you’ve bought a business this year.
In this case, a qualified tax attorney can help you to work out how depreciation allows you to make up the purchase price quickly.
If you’ve sold your business to someone else, you need an attorney to help you to get the maximum amount of capital gains. (This article by Property Capital Allowance helps you understand how to leverage capital allowances to your advantage.)
If you’ve opened up a business this year, it can be a bit tough to determine how you need to file and pay taxes based on the specific business entity you’ve set up.
An attorney helps you to understand your tax obligations when it comes to this new business, looks for deduction opportunities, and even helps you to navigate any international business you do when it comes to owed income tax.
4. You Owe Back Taxes to the IRS
Even hardworking people sometimes fall behind on their tax payments.
Maybe you were hit with an unexpected expense that made it impossible for you to pay the full amount you owed to the IRS. While you’re in better financial shape now, you’re still concerned that you won’t be able to pay the full amount owed.
This is yet another example of why you should hire a tax attorney.
They’ll ensure that you settle with the IRS for a fair amount — often, one that’s much lower than what you currently owe. You should certainly contact a tax lawyer if your back taxes have resulted in wage garnishment or bank account levies.
The same thing goes if you want to apply for financial hardship forgiveness, or if you need to settle payroll tax disputes.
Above all, working with an attorney means that you don’t have to worry about communicating with the IRS. Instead, your tax attorney can take care of all the correspondence.
Let an IRS Tax Attorney Handle Things for You
We understand that getting any kind of unexpected notice from the IRS can be frightening.
Even if you haven’t done anything wrong, it can be terrifying to think about the money that you might have to come up with.
That’s why the smartest thing for you to do is to work with an IRS tax attorney.
These professionals have tons of experience in working with cases similar to your own, and they can also tell you how to avoid tax complications in the future.
Looking for more information about what to look for in a tax attorney? Curious about how the legal process for tax fraud works?
Our blog is here to help.
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