When Do You Really Need a Tax Attorney?

The tax clock is clicking. By now, most workers have received their income statements from their employers. That is a subtle nudge to get going on pulling your tax return together before the dreaded April 15th deadline, and the majority of taxpayers file on time with little complications.

However, there are those incidents when filing a tax return can be a bigger challenge. It’s at that point calling a tax attorney may be helpful.

If you’re wondering if your circumstances warrant the assistance of a tax attorney, consider these potential factors:

You Are Being Audited

A notice from the IRS saying you’re being audited can certainly strike a chord of fear. This is a review process that is quite common. It is also a good reason to bring in a tax attorney.

If need be, that attorney can negotiate a settlement on your behalf. That settlement can take many forms such as an installment payment plan, an offer of compromise or a penalty abatement. You can familiarize yourself with those concepts, but a tax attorney will be in a stronger position to fully understand them and provide advice on the best path forward.

You Get a CP Notice

An IRS CP 501 notice is also referred to as a “reminder notice.” This is to inform you of an outstanding balance you owe the IRS, whether it’s from the current year or from a previous year’s filing. Your experienced tax attorney can help breakdown what the CP notice means and how you should respond.

You Have a Tax Dispute

Just because the IRS says you owe them money doesn’t make them 100% infallible. Yes, they have a decent track record when it comes to “keeping the books.” However, there are plenty of instances where they could get the numbers wrong.

With a tax code that is several thousand pages thick, mistakes can happen on both sides. You are well within your rights to dispute any claim presented by the IRS. Of course, you would be better served to have a tax attorney by your side. This is a person who understands the system and has worked through many disputes.

You Need Someone to Talk to the IRS

Navigating through the bureaucratic maze of the IRS can be equal parts intimidating and stressful. You can avoid that red tape by enlisting the services of a tax attorney who knows the system. By assigning that lawyer power of attorney for this matter, you are giving them permission to handle all your dealings with the IRS. They’ll make the calls, send out the letters and then report back to you. Instant stress reduction.

You Are Facing Criminal Charges

This is the worst-case scenario with regard to the IRS. It usually happens when a problem is ignored for a long period of time. The mere mention of “charges” should have your racing to a qualified tax attorney. The issue of income tax evasion is taken very seriously by the IRS.

You might think that many corporations and other wealthy CEOs get away with the tax loopholes. That might be true — but a defense of, “They did it, so I can, too” just won’t cut it.