- Tax attorneys help clients deal with a variety of IRS issues and disputes, like audits and tax charges
- Seven signs you need to work with an IRS tax attorney:
- You haven’t filed in several years
- You’re self-employed or have several investment income streams
- You owe a large amount in taxes
- You’re being audited
- You’re facing criminal tax charges
- You’re starting a business
- You have questions about your rights and responsibilities
Most taxpayers dread having to deal directly with the IRS. Some fear getting in trouble for making a mistake in their tax return. Others view the IRS as complicated and overwhelming, especially because tax season is never fun, and the laws constantly change.
People experience high-stress levels during tax return season. A recent Credello survey found that 25% of taxpayers are concerned they’ve made a mistake on their tax return and will get audited. Approximately 14% are stressed about not getting any money back, and 10% are afraid they’ll go to jail because of a tax return mistake.
Unfortunately, there are many situations when it’s necessary to take care of tax issues and deal with the IRS. Getting a notice about an upcoming audit or court date means it’s time to address these problems so that they do not become more expensive.
One solution that will minimize stress and ensure compliance is to hire a tax professional. Tax law is complex and challenging to sift through, and experts do it all the time. Working with an IRS tax attorney ensures you never have to deal with the IRS on your own.
This guide will cover what a tax attorney is, issues they help their clients with, seven signs you need to speak to one right away, and a few situations where it may not be necessary.
What IRS Tax Attorneys Do
IRS tax attorneys are experts in everything related to tax law. They understand all regulations, how they’ve changed or are changing, and how to follow them. They know how to advise taxpayers about federal, state, and local tax laws. Tax attorneys can help you prepare and file your tax returns, too.
IRS attorneys will fight to protect your rights as a taxpayer and negotiate with the IRS on tax issues, whether you need to challenge an IRS ruling, are dealing with a property issue, or need to settle back taxes. An IRS attorney can handle any tax dispute and will have a preparer tax identification number (PTIN).
Tax attorneys have graduated from law school and passed the bar exam. Tax attorneys are specialists in tax law, and some of them are certified public accountants (CPAs). Attorneys who are also CPAs are great for very complex situations with tax disputes or if a taxpayer has to report multiple income streams on their tax return.
Some tax attorneys work for law firms or accounting firms, but some run their tax law practices. They provide guidance, help with contract drafting and reviewing, and represent taxpayers in tax court. Working with a tax attorney ensures you get the expertise necessary to resolve your issue.
Tax Issues Tax Attorneys Can Help With
Expert tax attorneys can take on a range of tasks associated with tax law, advising and consulting, and tax preparation. They step in whenever you’re dealing with issues like the following:
IRS Tax Disputes
Tax disputes happen due to mistakes in taxes paid, tax return information, tax fraud, calculations, and other problems. Disputes occur after the IRS has issued an assessment after an audit or checking for compliance. An IRS attorney should handle all disputes, so that nothing is missed.
Estate and Property Transfers
Many tax implications are involved in property transfers, estate acquisitions, and other general real estate transactions. Tax attorneys will guide you through the process and follow all applicable laws.
Business Transactions and Structuring
Business owners decide to structure their businesses based on factors like size, the business type, and the applicable tax regulations. The structure will determine whether the owner or the business pays the taxes.
In the U.S., many people who go into debt because of their taxes. At the end of 2021, taxpayers collectively owed $133 billion in back taxes to the IRS, so many Americans clearly struggle to pay their high tax bills. A tax attorney can help you find relief options, like installment plans or an offer in compromise.
Many tax laws are confusing to taxpayers. IRS attorneys will help you navigate all these issues and more. Get in touch with a tax professional to learn more about how they can help you.
7 Signs You Need an IRS Tax Attorney
Not every taxpayer needs to hire a tax attorney, but many do when dealing with a tax problem or complex financial situation. It’s important to get help and guidance from a professional who understands the law. These seven signs indicate that you likely need to enlist the help of an IRS tax attorney:
1. You Haven’t Filed Your Taxes in Several Years
Sometimes life gets in the way of staying in compliance with tax laws. Not filing your taxes for a few years means you owe back taxes, and the IRS may penalize you for not filing or paying on time. This is when you need to hire someone who can help you figure out the next steps. You don’t want to make the situation worse or add more penalties and fines. A tax attorney will know the steps you need to take to minimize your liability and create a better plan.
2. You’re Self-Employed or Have Significant Income from Investments
Self-employment has plenty of perks, like flexibility and control. Taxes can be more challenging for the self-employed individual, however. Income may be less predictable and come from multiple sources, so it isn’t easy to track or report these on your tax return. Similarly, some taxpayers have multiple income streams from their investments, which can be hard to understand when preparing for their tax filings. These are perfect scenarios for working with a tax attorney who understands the details and follows the laws.
3. You Owe a Large Amount of Money in Taxes
Facing a large tax bill can be stressful and upsetting. Many taxpayers realize they can’t afford to pay their taxes, so they may avoid filing and paying, which leads to more issues and fines. There are options, however, if you can’t pay the full amount. IRS tax relief attorneys help clients understand their options and create a plan that works best for them while ensuring they comply with their tax obligations appropriately. You may qualify for an installment agreement or an offer in compromise, which an attorney can help you apply for and navigate.
4. You’re Being Audited by the IRS
The IRS may audit taxpayers to ensure the information they provide is accurate. Finding out you’re being audited can be daunting. You should hire an IRS audit attorney to help you prepare your records and send a response so you don’t have more issues. Attorneys will also be able to represent you in audit-related disputes.
5. You’re Facing Criminal Charges for Tax Fraud or Evasion
Instances of tax evasion or tax fraud charges do happen. If you are dealing with either charge, you’ll need to hire someone to help you right away. You’ll have to defend your position in court and try to avoid major fines and penalties. An IRS attorney will be on your side through it all, helping you get the best outcome possible.
6. You’re Starting a Business and Need Help With Tax Planning
Business tax law can be more complex than individual tax law. There are many regulations to navigate, and it’s important to choose the best business structure for your goals and tax implications. IRS tax attorneys ensure that you are doing everything properly and can help you decide which structure is best for your business. They can help you set up the right system for tax preparation and organization throughout the year.
7. You Have Questions About Your Rights and Responsibilities as a Taxpayer
The world of taxes is difficult to understand. The more complicated your income situation is, the more complicated your tax requirements will be. For instance, if you run a business, you’ll pay estimated quarterly taxes throughout the year or face a penalty. Tax attorneys ensure you’re doing everything right. They help you understand your obligations, all the implications of your business decisions, and what tax breaks you might not be aware of.
Remember that IRS attorneys can help you navigate tax issues surrounding property transactions and estate transfers. Dealing with any of these scenarios means it is time to hire a tax expert. These professionals understand how the IRS operates and will resolve your issue, so you don’t have to. Contact an experienced tax attorney for assistance.
When You Don’t Need a Tax Attorney
IRS tax attorneys provide a host of services, so they can be a great resource even if you aren’t dealing with a major tax dispute and want some preparation help. However, CPAs and other tax professionals may be able to help you with your question, especially if it’s not too complicated and doesn’t involve the legal system. Here are a few situations when you may not need a tax attorney and could consider working with another tax professional instead:
- You are focused on avoiding tax issues more than resolving one that already exists
- You need representation with the IRS and are not in court yet
- Your tax question isn’t related to the legal process or legal issues
- You need help with recordkeeping for your business throughout the year
- You need assistance filling out a tax form
- You have a question about a life change like a marriage, divorce, birth, death, or property ownership
- You need someone to prepare your tax return for you and have a simple income situation
You may not have to hire a tax attorney if you’re dealing with these issues or questions. However, a tax attorney can still assist you with these situations. They have expertise in tax law, can guide you through processes, and can answer your basic questions. Hiring an IRS tax attorney is a wise choice for any tax issue.
Contact the Expert IRS Attorneys at Silver Tax Group
Individuals and business owners do not want to deal with IRS tax issues. Unfortunately, they do have to. Never try to handle a legal tax issue, audit, dispute, or business structure question on your own. Attorneys ensure you’re doing everything correctly to avoid further tax problems, which can get expensive fast.
The team of tax attorneys and professionals at Silver Tax Group is ready to help you with the IRS. We help with emergency tax services, tax debt relief, representation in court, audit defense, general consulting, offers in compromise, asset issues, tax fraud investigations, and more. Our experts customize our services to help our clients meet their needs and goals while staying in compliance with laws and regulations.
Reach out to Silver Tax Group to speak to a tax expert about how an IRS tax attorney can help you with your situation.