Reasons to Hire a Tax Attorney

Posted on: 7 December 2021

There are many resources for tax management, including computer programs, bookkeeping, and accounting services. Thus, it is difficult to know when you should retain the services of a tax attorney as opposed to using other resources. This post highlights the likely scenarios that indicate it's time to hire a tax attorney.

Tax Disputes 

Are you having a dispute with the Internal Revenue Services (IRS) or state tax agencies? If your answer to this question is affirmative, it is time to seek legal support. Typically, tax disputes arise from audit queries over past tax returns. If the tax agency contacts you about a pending or ongoing audit, do not hesitate to have a lawyer. The tax attorney will represent you during the communications with the tax authorities to avoid self-incrimination. In addition to helping you respond to the queries, the tax lawyer can negotiate on your behalf. This way, you reduce the risk of hefty penalties and increase the chances of getting a favorable tax payment program.  

Criminal Charges 

A tax attorney is a must-have companion when facing criminal charges from the IRS. If the taxman presses charges against you, chances are there is considerable evidence for a tax criminal offense. Usually, attempting to represent yourself in a litigation process may be counterproductive. Instead, you should rely on legal expertise. The tax attorney has the knowledge and experience handling similar lawsuits. Also, the lawyer understands the litigation process and the judicial officers. Notably, the attorneys use their skills to interrogate prosecution evidence and prepare defense testimonials. Besides, the attorney can argue the merits of your case in a courtroom to get a favorable outcome. 

Some of the common tax offenses include: 

  • Tax evasion 
  • Falsifying documents 
  • Underreporting income 
  • Making frivolous tax claims 

The Desire for Expert Support 

There are different scenarios where tax attorneys may offer valuable support other than dealing with the IRS. Essentially, you may face challenges dealing with tax regulations in your personal and business life. In such situations, the tax lawyer can provide expert counsel and guidance to navigate the complications. For instance, you may need a tax attorney to assist with estate planning. In this case, the lawyer can assist you in tax planning to reduce your tax obligations, set up trusts, and in estate administration. 

More so, you can hire a tax attorney for your business to assist in the following issues:

  • Structuring a new company to reduce tax obligations 
  • Selling or buying a company 
  • Doing international business 
  • Purchasing investments with tax obligations 
  • Challenging a tax decision 

Tax issues can result in dire consequences, including possible jail time when mishandled. Hire a professional and reliable tax attorney for advice, representation, and litigation support.