5 Situations That Require You to Hire an Experienced Tax Attorney

5 Situations That Require You to Hire an Experienced Tax Attorney

March 26, 2023 0 By Maria

Certain situations require you to hire a competent tax attorney. Check out these situations here.

Paying your taxes on time and filing your tax returns every year is essential to help you avoid complex tax issues. However, at one time or the other, you may find yourself in certain situations that require a tax expert or attorney. Some of these situations when handled wrongly or assumed, you can end up in serious tax problems that can be costly. To enlighten you more about these tax situations that require you to hire a tax attorney, continue reading.

What to look for in a tax attorney?

Before we look at the situations that require you to hire a tax attorney, you need to learn a few tricks of how to pick the best attorney. First, you need to consider experience. An attorney who has helped many people with tax cases and has a proven track record of success, is what you need. Just check their reviews and you will know a good attorney. Also, you have to consider an attorney with fair pricing, you don’t want to spend a fortune trying to resolve tax issues.

Tax Situations

1.  When you have a huge tax debt

When you have a huge tax bill that you can’t clear at once, you need to look for a tax expert or attorney to help you out. The tax attorney will help you negotiate with the IRS for a favorable installment agreement payment plan. The attorney will consider your financial situation and look at options available to help you pay a lesser tax bill. Also, with an experienced tax attorney, you will have a more manageable payment plan that suits your financial situation. All the IRS wants is you to pay your tax debt, no matter how long it will take to clear the debt.

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2.  To prevent enforcement collection actions

If your tax debt is huge and you have not negotiated for a payment plan, the tax authority will enforce collection actions like wage garnishments, asset seizure, among other actions against you. If you find yourself facing collection actions, the only way you can stop that is hiring a tax attorney. The tax attorney, may get orders from the courts to stop the actions or face the IRS on your behalf for a smoother tax debt payment plan. Some collection actions can lead to loss of your assets and your wages. To protect your assets and wages, hire a tax lawyer to negotiate with the IRS on your behalf.

3.  When facing a tax audit

In case the IRS finds an indication of fraud or non-payment of full tax bill by either you or in your business, you can be audited.  The IRS tax audit can be a frustrating process and can expose tax mistakes that attract greater fines or penalties. To avoid further errors and to protect your interests throughout the tax audit process, you need an experienced tax attorney on your side. After the audit, the attorney can appeal or help you come up with a plan to pay the tax debt. The attorney can also negotiate for lesser interests and fines to lower your tax debt after the audit.

4.  When starting or selling a business

Staring or selling a company or business has tax impacts. You need to tax attorney to help you minimize your tax exposure and explain to you every tax situation you may find yourself in. The attorney will also advise you on how you can lower your tax bills and remain tax compliant. The tax expert or attorney can also help in contract negotiations, tracking and reporting income and any other tax problem you can face when running your enterprise.

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5.  In case of a tax-related legal issue

You can find yourself facing serious tax-related legal issues such as fraud or tax evasion. These are serious situations that can land you in prison or get fined when found guilty in the court of law. You need to hire a good tax lawyer to help you throughout the legal process, to ensure you get the best defense. That way, you are guaranteed that your rights and interests are protected.

Final Words

Some tax situations you can handle them on your own. However complex tax issues, requires you to hire a tax attorney. If you find yourself in the above situations, it is advisable to hire an experienced tax attorney to guide or help you out.