When Do You Need a Tax Attorney? 4 Common Use Cases…

Tax Attorney

Nearly 100 million people in the United States file taxes every year. Those people send trillions of dollars to the IRS which the IRS then uses to fund its federal budget.

For most, popping W2 information into virtual tax software and moving on is an easy process come tax day. For others with businesses or money irregularities, the process of dealing with tax questions leads to conflicts. As a matter of fact, sometimes conflicts around taxes can be so complicated that it makes sense to contact a tax attorney.

If you’re facing a financial situation that you think may carry tricky tax implications, keep reading. In this post, we share 4 instances where hiring a tax attorney is appropriate.

  1. You’re Getting Audited

Tax audits happen to a small percentage of people and businesses. If you’re ever unlucky enough to fall into that small percentage bucket, it’s going to be stressful.

Sometimes, hiring a tax preparer will suffice when dealing with an audit. Other times, audits become arduous and victims feel they may end up getting caught in misdealings. These are cases when being proactive and hiring an IRS tax lawyer makes sense.

Tax lawyers that are used to dealing with the IRS can help you get out ahead of the IRS’ strategies so you can avoid your audit devolving into a grave situation.

  1. The IRS Is Holding Your Debt

Among the limitless legal entities you could be indebted to, the IRS is by far the worst. The IRS has the power to place liens on your property, pull wages out of your bank account, and even send you to jail. That’s why you’ll want the help of a tax attorney if you’re drowning in federal debt.

A good tax attorney can help you work out arrangements with the IRS so they’ll cease taking offensive actions against you. Your attorney may even get the IRS to settle on a portion of your debt to make your obligations less cumbersome.

  1. You’ve Been Caught Committing Fraud

Whether you’re hiding income or filing taxes in another person’s name, willful tax fraud can get you incarcerated. If you’ve committed tax fraud and the IRS is onto you, you absolutely need an attorney.

A quality attorney is the only thing that may be able to stand between you and prison.

  1. Business Transitions

Less serious circumstances exist when it’s appropriate to hire a tax attorney. For example, when you’re buying or selling a business.

A tax attorney can dig into a company’s existing tax obligations which can make clear to buyers and sellers what sort of liability they’d be taking on if a particular company were to change hands. That creates more transparency into the transition process and fewer headaches down the road.

A Tax Attorney Should Always Be Kept at Top of Mind

Anytime you’re dealing with money or the IRS, you should ask yourself if you need a tax attorney’s help. Almost always, they can add value to whatever it is you’re managing.

The few cases we’ve shared with you just scratch the surface of what an IRS tax attorney can do for you. If you’re curious to know what other advantages you might enjoy, Google “best tax attorney near me” and talk to a tax attorney. They’ll be glad to sell you on their value.

For more insight into all things money, we welcome you to explore more of the latest content we have posted on our blog.