6 Reasons Why You Should Hire A Lawyer When You Are Working on Taxes
It’s normal to get excited about starting a new career, whether you’re taking a role in a different industry, or starting your own business. However, with a new job comes new tax implications; many people get swept up in their changing circumstances and struggle to file their income taxes come tax time.
If you’re in this situation, fear not, you’re not alone. To effectively sort your taxes and maximize your return, hire a specialist tax advice lawyer to assist you in the filing process. Professionals working in tax law are skilled in all sorts of complex situations, from providing advice on your personal income tax, to more intricate guidance regarding issues with the Internal Revenue Service (IRS).
Table of Contents
- Here are six reasons it’s beneficial to hire a lawyer when you’re sorting out your taxes
- 1. You Won’t Get Confused By Tax Laws
- 2. You’ll Need Expert Advice If You’re Not Up-To-Date With Your Taxes
- 3. It’s Often Less Expensive To Hire A Tax Lawyer Than Pay Penalties
- 3. Your Tax Problems May Be Complicated
- 4. You May Need One If the IRS Finds You Criminally Liable
- 5. They’ll Be Knowledgeable About Changes To U.S. Tax Laws
- Final Takeaway
Here are six reasons it’s beneficial to hire a lawyer when you’re sorting out your taxes
1. You Won’t Get Confused By Tax Laws
It can be frightening and intimidating to navigate U.S. tax law. One major reason for this, is not everyone knows which laws and regulations apply to their profession or business. There are also countless laws to adhere to, and a failure to do so can result in serious fines or even criminal charges. If you’re an entrepreneur, you might be familiar with how your business works but are clueless as to the taxes you must pay. The same holds true with others pursuing new professions. Having the right lawyer on your team ensures you’ll comply with all relevant legislation.
2. You’ll Need Expert Advice If You’re Not Up-To-Date With Your Taxes
It’s common for people to forget to file their taxes or update their tax liabilities. Some may file the wrong forms, while others may have incorrectly declared their income tax and need to update the IRS. There are also those who’ve been deliberately dodged their taxes in the past, but who get caught by the IRS. In any circumstance where you’re not up-to-date with filing taxes, a specialist lawyer can provide advice and guide you through the process.
3. It’s Often Less Expensive To Hire A Tax Lawyer Than Pay Penalties
Some people think hiring a tax lawyer is too expensive and prefer to deal with the IRS directly. However, if problems arise and you allow them to worsen, the penalties you incur from incorrect declarations or failing to file your taxes may be more than the cost of a tax lawyer. To ease your worries, calculate your approximate taxes owed and consult a tax lawyer for a quote on their services before making a commitment.
3. Your Tax Problems May Be Complicated
If your circumstances have changed significantly across the financial year, such as starting a higher-paid job, it’s easy to get lost in your tax problems. One common example of complicated taxes is international business expansion. The profits achieved from reaching a new audience with your company may be good, but you must consider how the international scope of your business may affect your tax obligations.
Another example of an intricate tax problem is when the IRS actually owes you money. This requires you to file a lawsuit against the IRS itself to obtain the funds you’re owed. The more complicated your tax problems get, the more important it is to find a competent tax attorney to help you.
4. You May Need One If the IRS Finds You Criminally Liable
There are some cases wherein the IRS has conducted an investigation and decides to file legal action against you due to tax liabilities. If you’re not given the correct advice, you could literally wind up in jail. Thanks to client-attorney privilege, a tax lawyer will be able to consult with you and provide expertise. This principle means your lawyer isn’t legally bound to divulge your tax transactions to the IRS or any other government agency. Instead, they’ll go over your case in detail and determine the right course of action with your best interests in mind.
5. They’ll Be Knowledgeable About Changes To U.S. Tax Laws
Tax laws aren’t stagnant; they change over time. Thus, you need a tax lawyer who is up-to-date with current tax laws. A competent lawyer will point out any changes that’ll affect your profession or business, year to year. This will help minimize your tax liabilities so you don’t end up paying the wrong taxes or missing important information.
Income tax is one of the most prevalent concerns of U.S. citizens—particularly those who’ve started a new profession or those who own businesses. If it’s your first-time paying income tax, or you have complicated tax queries, an expert tax advice lawyer will help you through the process, ensuring all necessary IRS forms are completed and income tax paid. Without the stress of managing your taxes, you’ll have one less worry, so you can focus on your business or personal life.