If you’re struggling with an IRS tax issue, you may benefit from hiring an attorney. However, not every tax concern requires legal assistance. In some cases, speaking with a CPA or tax consultant can be just as effective and less costly.
Certain cases warrant legal assistance from a tax attorney. Read on to learn a few instances where you may need an attorney to help with IRS taxes .
You’re Facing a Tax Dispute
Tax disputes can include audits, investigations, appeals, and other issues in which the IRS disagrees with information you’ve provided in your tax return. While tax disputes can be stressful, hiring an attorney can help you navigate them confidently.
One reason tax audits and investigations often feel overwhelming is that the IRS knows much more about tax law than you do. As a result, you may hesitate to disagree or argue with their findings, even if you think they’re false.
Tax attorneys have extensive knowledge and a deep understanding of IRS rules and tax laws. They can review your tax returns and any findings from the IRS and help you dispute penalties.
Just because the IRS audits you does not mean you have done something wrong. Sometimes, IRS audits are random. Having a tax attorney on your side through an audit can ensure that you take every measure to come out of this process on top.
You’re Overwhelmed with Tax Debt
Whether you forgot to pay taxes throughout the year or were unaware of the tax consequences of selling an investment, tax debt can pile up quickly. You may feel overwhelmed by the amount you owe the IRS and unsure how you will repay it by the stated deadline.
A tax attorney can help you navigate tax debt by walking you through potential resolution programs. The IRS offers a few programs to help taxpayers settle or resolve their back taxes. A few programs include:
- Installment plan: A program to pay back your taxes in monthly installments
- Offer in compromise: A program that enables you to settle your tax debt for a lesser amount
Tax attorneys know the ins and outs of these initiatives. They can help you understand your eligibility and walk you through the application process to improve your chances of gaining approval.
You Need Help With Estate Planning
You may also need a tax attorney during the estate planning process. Leaving money to beneficiaries can create unintentional tax consequences. Your attorney can inform you about the right trusts to use to minimize tax consequences.
Alternatively, if you are the executor for a person who has recently passed away, an attorney can help you file the decedent’s final tax return. Completing this final return is an important step in closing the estate. Ideally, you should take any taxes they owe out of the estate before distributing inheritances.
You’re Navigating Civil Tax Litigation
If you disagree with the IRS and want to dispute a tax penalty, you may need to take legal action. Your tax attorney can help you through civil tax litigation by providing knowledgeable legal advice, speaking with the IRS on your behalf, and walking you through the court process.
Note that not all tax attorneys deal with criminal tax litigation. If you’ve been charged with tax evasion or are facing another criminal penalty, you may need a criminal lawyer instead.
If you’re unsure whether you need a tax attorney, contact our team at Levy & Associates today. We can review your case and match you with a tax attorney, tax consultant, CPA, or other professional who can provide qualified guidance and assistance.