3 Situations That Require a Tax Attorney

ully you will never require the services of a taxlarger fraction of the taxes they owe than do people
attorney, although it’s never a bad idea towho get the help of a tax attorney. Because the
consult with one on a regular basis in order to haveinformation you provide to your attorney is privileged,
him or her review your files and makeyou can confide in your attorney about exactly why
recommendations. But if you do in fact require theyou didn’t pay taxes in the first place. With that
services of a tax attorney, make sure you spendinformation, the attorney can work to get you the best
some time interviewing various attorneys in order topossible outcome.
find one who can address your unique needs and with3. Business Ownership. If you own your own business,
whom you feel comfortable. And before you choosea tax attorney can help ensure that you set up your
to use the services of a CPA or bookkeeper insteadassets in accordance with tax laws. This means that
of a tax attorney, remember that a tax attorney isyou can potentially save thousands of dollars in
required to keep all of your information confidentialdeductions and can help you rest easy knowing that
while a CPA is not. Here are some situations in whichyou’re doing everything by the book.
you may find yourself that require the services of aIf you find yourself in one of the above three
tax attorney:categories, you should enlist the services of a tax
1. Audits. This is the most obvious reason for hiring aattorney right away. There is no way to overestimate
tax attorney. If you find yourself subjected to an audit,the help that they can provide and the good that they
the IRS has noticed a problem with your tax return.can do on your behalf. Whether they simply answer a
Whether you prepared your taxes yourself or hiredfew phone calls for you and respond to a few letters
someone to do it for you, now is the time to hire anor actually defend you in court, the services they
attorney. An attorney can help you navigate the auditprovide can save you a lot of money and heartache.
process and can advocate on your behalf.Audits and back taxes aren’t the end of the
While the IRS would like you to believe that tax lawsworld, but they can sure seem like it when you find
are black and white, they really aren’t. A taxyourself in the middle of one of these sticky situations.
attorney knows this and can ensure that those variousThey can be overwhelming and cause you to feel like
shades of gray work on your behalf by usingthe whole world suddenly has access to the details of
loopholes and an intimate, up-to-date knowledge of taxyour life. But a tax attorney can mitigate that awful
laws. A tax attorney will also field any correspondencefeeling for you, and you’ll just feel more at ease
and phone calls from the IRS, which can remove a lotwhen you realize that you have a professional
of stress from you and free up a lot of your time. IRSadvocating for you. And even if you haven’t
agents are intimidating and use strong language tohad any IRS trouble, consider consulting with a tax
scare taxpayers into simply giving them everythingattorney anyway just to make sure you avoid any
they ask for without putting up a fight. Tax attorneyspotential trouble in the future. The cost of using a tax
aren’t intimidated by auditors, however, and canattorney is minimal compared to the cost that you
talk to the auditor in your stead.might accrue by representing yourself in front of the
2. Back Taxes. People who try to work with the IRSIRS.
without the help of attorney typically end up paying a