We all have to do our taxes correctly because the IRS forgives nobody. But what happens when you are faced with an IRS-related issue? From overdue taxes to overwhelming tax debt, there are plenty of serious tax-related matters that are very difficult to deal with. Fortunately, you can ask for help. Your taxes are your responsibility, but you can seek the assistance of a tax lawyer when things get complicated. But how do you know when it’s time to hire an attorney? Here are a few things that can tell you that the time has come.
You have overwhelming tax debt
It’s very easy to overlook taxes, but rest assured that it all catches up to you. Tax debt can quickly turn into an overwhelming amount, which will destroy you financially. To prevent that from happening, you have to take action. If you have large tax debt, you can sign up for an IRS fresh start program. Tax law specialists can help you pay off your debt in several installments, which will not drain you financially, rather than a huge lump sum payout.
You are facing an IRS audit
If you get an IRS audit notice, then it is best you seek professional assistance. The tax code is over 74,000 pages long, so your tax records are likely to need some fine-tuning before facing the IRS. This is the time to call a tax lawyer, who can help you through the auditing process, but who can also represent you should your case be transferred to tax court. Prevention is the best possible approach when it comes to IRS audits.
You are facing suspicion from the IRS
The main goal of the IRS is to make sure that businesses abide by the tax code. As such, they have to make sure that your taxes check out down to the last detail. Even if your business has done nothing wrong, it might exhibit a suspicious pattern, such as accelerated financial growth, and it will be closely monitored by the IRS. If you are facing IRS suspicion, then it is time to get a tax lawyer, simply because you may need a mediator in your further contact with the federal authorities.
You are facing tax-related criminal charges
If you are facing criminal charges related to your taxes, such as tax evasion, do not minimize the situation and get legal representation. Having a good attorney is your best chance at getting a positive outcome and avoiding serious fines (up to $250,000) and even jail time (up to 5 years in prison).
The benefits of working with a tax lawyer
Hiring a tax lawyer might seem like an unnecessary expense, but in the long run, it can help you steer clear of a wide range of tax-related issues. The best course of action is to prevent these problems before they get a chance to affect your life or your business. Working with a professional offers some invaluable benefits that will make a difference. Here are some of them:
Superior knowledge of the tax code
You may do your taxes religiously, but you are far from mastering the tax code. A specialist has a profound knowledge of it and will be able to spot out any irregularities, but also help you optimize your tax records. Moreover, should you be faced with a tax-related issue, a lawyer can use the tax code to your advantage.
Protection from intimidation
Dealing with the IRS can be a very time-consuming process and you are exposed to various intimidation techniques that their representatives might use. An attorney can shield you from all of these intimidation tactics and get you a positive outcome for your issues. Your attorney will act as in intermediary between you and the IRS, so you don’t have to deal with them directly anymore.
Assistance with filing returns
If you have to file tax returns, then your lawyer can help you submit the correct data to the IRS. Moreover, an attorney can help you file late returns, as well as the returns from this year. Should you need an extension for filing your returns, your lawyer can fill out the required paperwork and get your request in.
As you can see, there are several situations that may require you to seek professional help from a tax lawyer. If you are dealing with overwhelming tax debt or facing IRS suspicion or charges, then it is time to get yourself an attorney, who can use the fine details of the tax code to your advantage.