Why should you hire a tax attorney?
If your tax liability is small and relatively easy to handle, hiring legal representation may not be cost-efficient. So when would it be a good idea to hire a tax attorney?
1) You are afraid of dealing with the IRS on your own
Facing the IRS alone can be frightening and confusing at times. With risks of owing a lot of money on the line and not understanding your legal rights when dealing with a government agency, it is best to leave it in the hands of professionals.
2) Attorney Client Privilege
Although you can hire a CPA or Enrolled Agent to handle your tax issues, hiring a tax attorney enables you to have attorney client privilege. Only attorneys are legally exempt from being forced to testify against you should the IRS choose to prosecute you criminally in the future. You can feel confident in communicating your concerns and know that it is confidential.
3) You owe a lot of money to the IRS or the State
The IRS and State are more aggressive in collecting large amounts of unpaid taxes and scrutinizes the information you provide more closely. If you owe a lot of money to the IRS, you need a tax attorney to advocate and defend your rights.
4) You are being levied by the IRS or on the verge of collection actions being taken
Getting a levy released or reduced is not an easy task. Since you only have a limited window to contact the IRS and negotiate for a levy release, it requires a lot of work in a short period of time. This is why you shouldn’t try to negotiate with the IRS alone; seeking the help of an experienced tax attorney is imperative for any chances of a levy release or reduction.
5) You haven’t filed your tax returns for many years
The IRS eventually finds and contacts all non-filers and penalizes them for not filing tax returns. Penalties and interest are assessed for all the years you haven’t filed and these penalties and interest can turn a small tax debt into a huge problem. You may be scared and decide to file all of the missing tax returns at once, but that isn’t necessarily a good strategy. Our law firm will conduct an investigation with the IRS and determine what is the “bare minimum” number of returns you need to file to be in tax compliance and help you resolve your tax problems.
6) Your case is assigned to a Revenue Officer or Automated Collection Systems (ACS)
If your case is assigned to a Revenue Officer or ACS unit, you are at risk of collection actions being taken against you. The Revenue Officer’s and ACS unit’s job is to collect unpaid taxes. In accomplishing this goal, the agents you deal with may be overbearing and aggressive in their collection tactics. You need legal representation to level the playing field and to ensure your rights are protected.
7) You are being audited by the IRS
If your tax return has been selected for an audit, you should seek legal representation. Hiring a tax attorney to help you prepare for and participate in the audit can significantly increase your chances of a better outcome. During the course of the audit, you may provide more information than necessary to the auditor that could lead to further probing and potentially an expansion of the audit for prior years. Having a tax professional to negotiate and compromise with the auditor will likely lead to better outcomes and a quicker end to the audit.
8) You owe IRS or State payroll taxes
If you are behind on payroll taxes, you need legal representation to determine the best course of action to take. The IRS and State frowns upon businesses that have unpaid payroll taxes. Whether you decide to stay in business or close shop with a payroll liability issue, you need competent and experienced representation.
