What does it imply when any powerful agency files a case against me? Can a lawyer help me? When it comes to IRS tax-related queries, it’s very common to get baffled about where to go and whom to approach. Should I approach an IRS tax attorney or an accountant?
If you have any IRS tax problems, then it is important to handle it carefully or the consequences can be worse. We share with you some important tips that would help you understand the legal process and how an IRS tax attorney can help you in different ways.
Why would you require a Tax Attorney?
It would make sense to hire an expert in tax representation, when you or your business firm faces any sort of IRS penalties or interest-related issues or criminal actions etc. There are people like CPA, tax lawyer & IRS licensed enrolled agent to help you get out of such problems as they know the tax laws well and devise a plan as per the need of your case. It is equally essential to know about the various IRS penalties and what to do when you have to deal with it.
You would require a tax attorney, if you face any of the following are situations:
- Leaving behind an ancestral property or estate worth millions
If you anticipate that you might leave behind a taxable estate when you die and your heirs have to pay a heavy estate tax. Then a tax attorney would devise an estate-planning strategy to help you stay within the threshold limits also save a huge amount going to taxes from your estate.
- Planning to start a new business?
When you have plans to start a new business then you would have lots of questions cropping up in your head such as:
- Type of entity to set-up
- Corporate rate tax and rules
- Which type would be best – Private limited, sole-proprietor or a limited liability?
You can consult a legal opinion and get all the details regarding tax & non-tax issues to have clarity before you start your business.
- Give your business some new wings!
To grow your business internationally, you would need to consult a tax attorney to know about the tax treatments, terms for contract and other legal concerns.
- Going against IRS or facing any criminal angle with IRS
If you want to seek independent review of your case when you’re under criminal investigation by the Internal Revenue Service or maybe you plan to file legal charges against the IRS. And you would require a tax attorney to stand up for you to present your case and help you understand the legal complications.
When would you need a tax attorney’s help?
- Disputes related to IRS tax
In most cases, a dispute emerges in the form of an audit of sometimes one or many past tax returns. When you get a notification for an audit from the IRS, then immediately (without even having second thoughts) hire a tax attorney.
Role of tax relief attorney here:
- Communicate on your behalf with the IRS
- Assist in the audit
- If required, negotiate with a settlement
People sometimes get scared or are not sure how to react when they get a letter or warning from the IRS. For such cases, IRS with no choice left would threaten for criminal charges for tax evasion. So, you would need to hire a tax attorney soon who would reassure the IRS that you’re taking its investigation on a serious note. Also, your tax attorney would work with the IRS to avoid any criminal charges against you or if you’re charged with a tax-related crime then would represent your case in the court.
- Tax fraud charges or evasion
When people don’t file their tax returns, pay taxes or refuse to show all the sources of income then the IRS charges criminal offenses like tax evasion or tax fraud against them. With these criminal charges, there comes prosecution fees, fines, incarceration, interest on tax owed and even worst is public humiliation. Your entire details such as name, contact details etc. are published in the IRS website. If you’re in negotiation with the IRS and agents visit you (at home or office) for further questioning then its high time you engage a tax attorney to handle your case.
- OIC (Offer in compromise)
An OIC is termed as offer in compromise, an agreement signed between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS will accept the OIC if certain conditions are matched.
How to know if this tax attorney is the best for you?
Before you finalize on a tax attorney be sure to get all these possible details:
- Duration of expertise in the law field
- Has similar previous case experience
- Course of action for your case
- Assessment of your situation and fees etc.
IRS tax issues can be a crucial yet sensitive matter and cannot be handled lightly. A tax attorney can help you in most of the cases but it’s important to choose the right one.