why should you hire a tax attorney

by Margarette Pfannerstill Published 2 years ago Updated 1 year ago 6 min read

8 Reasons Why You Should Hire a Tax Attorney

You Get Professional Advice. For an ongoing business, it is difficult to underestimate the need for a CPA. A...
Awareness of Tax Policies. The tax laws are updated now and then, and it is almost impossible for the ordinary...
Cost Efficiency. While great representation is not cheap, lousy representation is way more...

Tax attorneys help clients understand complicated tax laws, settle disputes with the IRS, provide tax relief, prepare tax-related documents and offer their expertise in broader areas such as corporate, estate or business taxes.Oct 22, 2021

Full Answer

Should you hire an IRS tax lawyer for back taxes?

Jan 19, 2022 · When to Hire a Tax Attorney Estate Planning. A tax attorney can help you with estate planning, handling paperwork, or devising estate planning... Starting a Business. A tax attorney can also come in handy when starting a business. Depending on where you do it and... Tax Disputes. IRS audits are ...

What can a tax lawyer do for You?

May 12, 2022 · There are several reasons to hire a tax attorney, including: You Are Behind on Tax Returns If you find yourself dealing with years of unfiled tax returns, your best bet might be to get a tax attorney. You can indeed fill them out and send them with the help of your accountant, but you are still going to need the use of a tax attorney.

Should I hire a tax attorney or a CPA?

Jul 13, 2020 · 8 Reasons Why You Should Hire a Tax Attorney 1. You Get Professional Advice. For an ongoing business, it is difficult to underestimate the need for a CPA. A... 2. Awareness of Tax Policies. The tax laws are updated now and then, and it is almost impossible for the ordinary... 3. Cost Efficiency. ...

Do I need a lawyer for an IRS audit?

Apr 21, 2020 · When you hire a tax attorney to help you through this process, you get their experience, knowledge of the law, and negotiating skills on your side, and you put yourself in the best possible position to secure a favorable resolution. The IRS Says You Owe a Sizable Tax Debt The Internal Revenue Service frequently makes mistakes.

Why might you seek the help of a tax attorney rather than a CPA?

Unlike CPAs, who are skilled in managing financial records and preparing tax returns, the tax attorney is more planning and dispute-oriented; meaning they are primarily trained to help minimize a business' tax liability through the structuring of assets or to represent them through tax-related litigation.

Why do people hire lawyers against the IRS?

Tax lawyers can represent you in court.

If your back taxes lead to criminal charges or tax fraud issues, you need a legal expert to guide you through the process. Tax lawyers have the knowledge and experience necessary to build an effective case, represent you in front of the IRS, and even defend you in court.

Can IRS put you in jail for not paying taxes?

The following actions can land you in jail for one to five years: Tax Evasion: Any action taken to evade the assessment of a tax, such as filing a fraudulent return, can land you in prison for 5 years. Failure to File a Return: Failing to file a return can land you in jail for one year, for each year you didn't file.Dec 8, 2021

Can you go to jail for lying on taxes?

Lying on your tax returns can result in fines and penalties from the IRS, and can even result in jail time.

Are tax attorneys worth it?

If you have back taxes that you need to pay off, a tax attorney can help to negotiate a deal for repayment. A good tax attorney will often be able to negotiate a better deal than you would have been offered otherwise, saving you money on interest payments.May 28, 2020

How much does it cost for a tax attorney?

According to a survey by Martindale-Avvo, a legal marketing and directories firm, tax attorneys charge $295 to $390 per hour on average.Jun 23, 2021

What happens when you don't pay taxes for 10 years?

If you continually ignore your taxes, you may have more than fees to deal with. The IRS could take action such as filing a notice of a federal tax lien (a claim to your property), actually seizing your property, making you forfeit your refund or revoking your passport.Mar 21, 2017

How can I legally stop paying taxes?

If you want to avoid paying taxes, you'll need to make your tax deductions equal to or greater than your income. For example, using the case where the IRS interactive tax assistant calculated a standard tax deduction of $24,800 if you and your spouse earned $24,000 that tax year, you will pay nothing in taxes.Mar 24, 2022

Can IRS check my bank account?

The Short Answer: Yes. The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you're being audited or the IRS is collecting back taxes from you.

How many years can the IRS go back?

Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.

Can I refuse to pay taxes?

In general, it is illegal to deliberately refuse to pay one's income taxes. Such conduct will give rise to the criminal offense known as, “tax evasion”. Tax evasion is defined as an action wherein an individual uses illegal means to intentionally defraud or avoid paying income taxes to the IRS.Jul 14, 2021

How do you tell if IRS is investigating you?

Signs that You May Be Subject to an IRS Investigation:

(1) An IRS agent abruptly stops pursuing you after he has been requesting you to pay your IRS tax debt, and now does not return your calls. ...
(2) An IRS agent has been auditing you and now disappears for days or even weeks at a time.

More items...

What is the attorney client privilege?

The communication between an attorney and a client is subject to the full and well-protected attorney-client privilege. When the IRS is investigating your tax reports (or trying to put you in jail), they frequently ask for testimonies and documents from tax preparers you hired to assist you in filing and financial management.

Is the IRS a joke?

Tax-related issues should be handled thoughtfully and given careful consideration. Without a doubt, the IRS is no joke, and any mistake from you, your employee, or an unreliable tax preparer could land you into serious problems.

Is representation cheap?

While great representation is not cheap, lousy representation is way more expensive. If you have thought about the huge costs incurred in hiring a lawyer, then you need to weigh in what you stand to lose by not engaging one. An attorney’s primary obligation is to focus on tax controversies, and they may be in a position to identify, analyze, and respond to issues that you might otherwise overlook.

Why is it important to hire an experienced tax attorney?

An experienced tax attorney can apply their knowledge of the tax code to save you thousands in unnecessary and inaccurate tax payments. CPAs and attorneys who don’t specialize in tax matters rarely have this same knowledge, so it’s important to hire an experienced tax attorney when dealing with major tax liabilities.

Why do lawyers use arguments of fact and law?

Lawyers are trained to use arguments of fact and law to persuade others to agree with them, and that includes the tax bureaucracy. In one instance, I stopped an audit of my client’s business dead in its tracks because I persuaded the auditor that the law he was relying on did not apply to my client after all!

What to do if IRS accuses you of tax fraud?

You’ve Been Accused of Tax Fraud. It should go without saying that if the IRS accuses you of income tax evasion or tax fraud, you need to hire an attorney right away. If you’re facing criminal charges, then your assets, your livelihood, and even your freedom can be on the line.

Does the IRS make mistakes?

The Internal Revenue Service frequently makes mistakes. Besides the unavoidable factor of human error, the IRS relies on outdated computer systems that are very prone to errors. So, when the IRS says you owe an outstanding tax debt and related penalties, you shouldn’t just take their word for it.

Can the IRS ignore statutes?

The IRS can ignore a legal textbook, but they cannot ignore statutes and case law!

Awareness of tax policies

Tax laws change regularly, and it is very difficult for an ordinary citizen or accountant to keep up with the updates. On the other hand, a tax attorney is always up to date on tax policies and laws.

Tax fraud

If the IRS accuses you of tax fraud or evasion, then your livelihood, assets, and freedom are on the line. In such a situation, only an experienced and qualified tax attorney can help you. They will represent you in court as well as provide you with legal guidance and advice.

When setting up your estate plan or will

Your regular lawyer working closely with a tax lawyer can be a very good idea when setting up your will or estate plan. Depending on the estate’s value, you might be passing additional taxes to your loved ones without knowing. You may also end up paying more taxes if you are not careful.

Need help with a tax Issue?

If you have any concerns or questions about any tax matter, do not hesitate to contact experienced and qualified tax lawyers at Hillhurst Tax Group. Our attorneys have been around for a while, helping businesses and individuals resolve tax issues with IRS. Protecting taxpayers’ rights is our priority.

What can a tax attorney do?

A tax attorney can build a case in your defense and represent you in court if necessary. Delinquent Tax Returns: Filing outstanding tax returns allows you to bring your account with the IRS current, but filing late can also lead to substantial interest fees and penalties.

What can a tax lawyer do?

Tax lawyers can help you both before you have a tax debt issue and after the IRS has contacted you to resolve tax matters. They can handle the following: Researching Cases: Tax lawyers investigate IRS cases to identify problems and determine potential solutions.

What degree do tax attorneys need?

Some also go on to earn a Master of Laws in Taxation (LL.M.) degree, which provides specialized preparation for working in tax law. Finally, tax attorneys have to pass the bar exam administered by their state’s bar association. This exam requires rigorous preparation and proves attorneys’ competence at practicing law.

Can a tax lawyer represent you in court?

Tax lawyers can represent you in court. If your tax debt leads to criminal charges or tax fraud issues, you need a legal expert to guide you through the process. Tax lawyers have the knowledge and experience necessary to build an effective case, represent you in front of the IRS, and even defend you in court.

What to do if you have a tax debt?

If your tax debt leads to criminal charges or tax fraud issues, you need a legal expert to guide you through the process. Tax lawyers have the knowledge and experience necessary to build an effective case, represent you in front of the IRS, and even defend you in court. Hiring a tax attorney can have some drawbacks, too.

Do tax attorneys charge by the hour?

Since tax attorneys’ settlements and resolutions can help you save substantial money on your tax debt, however, you may end up with a positive bank balance after hiring an IRS tax lawyer. Most attorneys charge by the hour. Most local tax attorneys charge by the hour, other companies work on a set price basis.

How long does it take to settle a tax case?

Case Length: While tax attorneys can resolve some cases in days or weeks, others take months or close to a year to resolve. Longer cases generally cost more to resolve, but you should always ask your tax lawyer to confirm.

What do tax attorneys do?

The job of a tax attorney in this situation may be to represent you in tax court or help you negotiate a settlement with the IRS. In other words, they can help you settle your tax debt for less. You can do that in two ways: an offer in compromise or penalty abatement.

Can a tax attorney help you avoid prison?

If you’ve been playing fast and loose with IRS rules, you won’t be able to avoid all trouble. However, a tax attorney can help reduce your IRS penalties and possibly keep you out of prison. 3.

What to do if you have already gone through a tax audit?

However, if you’ve already gone through a tax audit but disagree with the auditor’s decision, you have the option to appeal. In that case, you need legal representation. The job of a tax attorney in this situation may be to represent you in tax court or help you negotiate a settlement with the IRS.

Do you need a tax lawyer to negotiate a payment plan with the IRS?

If you simply need to arrange a payment plan with the IRS, you don’t need a tax lawyer to handle that for you.

What to do if you don't understand a notice?

If you don’t understand a notice or are worried it could turn into a bigger issue, consulting with a tax attorney is a good idea. The tax attorney will have you sign IRS Form 2848, giving them power of attorney (POA) to communicate directly with the IRS so you don’t have to. Don’t be alarmed by the term “power of attorney.”.

Can a tax attorney visit you at your home?

The officials have the discret ion to visit you at your home, in your business premises or even at your tax attorney’s office. Field audits are not always compulsory and you can instead ask for an office audit.

Do IRS officials treat you differently?

It is well known among the legal profession, at least, that IRS officials will treat you differently if you are being represented by a qualified official. These officials understand that attorneys and other tax professionals have spent years understanding the laws and the IRS code.

Can IRS visit you at home?

Field audits. These are almost similar to office audits but the IRS officials will visit you instead. The officials have the discretion to visit you at your home, in your business premises or even at your tax attorney’s office. Field audits are not always compulsory and you can instead ask for an office audit.

What type of audit is done for a recent tax return?

1. Correspondence audit. This type of audit is mostly made for fixing any minor errors that appear on your recently filed tax returns. This type of audit can be handled via email hence the name. 2. Office audit.

What is the number to call for tax advice?

For free, no-obligation tax advice call Ayar Law at 800.571.7175.

Can IRS auditors refer you to Criminal Investigation Branch?

When it comes to taxation matters, it is very simple for some errors to look intentional. In such a case, your IRS auditor will not hesitate to refer you to their Criminal Investigation Branch/division. A proficient tax defense attorney will help you avoid this.

Can you ask for an office audit?

Field audits are not always compulsory and you can instead ask for an office audit. However, you will have to give some reasonable explanations as to your reservations but it is not guaranteed that the IRS will grant this request. After all, the IRS believes that most people who object a field audit are trying to hide something.