When to Hire a Tax Attorney

On the whole, most taxpayers can deal with their personal income taxes without much difficulty. Still, in some cases, an attorney is either a valuable ally and a needed partner.

When the regulations are not followed, the IRS and the California Franchise Tax Board (FTB) are aggressive, no matter how careful the taxpayer is.

Taxpayers, on occasion, taxpayers make an error and find it difficult to rectify on their own. It just becomes worse when they ignore it. Alternatively, individuals depend on a CPA or tax preparer to help them out in the problem but may find themselves in even more hot water because it might lead to a lawsuit with the IRS or FTB.

We will take a look at why you need a tax attorney.

If any of these apply to you, you need to hire a tax attorney:

  • More than $10,000 in taxes is owed to the IRS.
  • You have substantial IRS penalties
  • You have two years of unfiled tax returns
  • A Federal Tax Lien has been placed on you
  • There is an IRS levy
  • There is an IRS wage garnishment
  • You want someone else to step in to handle IRS issues on your behalf.

A tax attorney can assist you in safeguarding your rights and represent you in negotiations with the IRS. Tax attorneys have a profound grasp of tax law and know how to deal with the IRS.

Moreover, tax attorneys can help you get your tax liability reduced before you file a tax return. A tax attorney assists in legal papers related to your finances, as well as provides advice on how to manage your money, so you pay less in taxes. Tax attorneys provide other wealth management services, including:

  • Wills, trusts, and estates
  • The task of drafting wills and trusts
  • Incorporating businesses
  • Drawing up contracts for business
  • Advising on foreign tax matters

Why Hire a Tax Attorney?

If you have tax difficulties with the IRS or any other state tax agency, you will want to consult with a tax attorney, not with a CPA or another tax preparer. The most significant benefit of hiring a tax lawyer is the attorney-client privilege. With attorney-client privilege, you have a safe space to disclose and discuss your tax concerns and get expert advice. Also, the attorney-client privilege protects means the attorney is exempted from having to testify against you in court in case your situation goes to trial, unlike a CPA or tax preparer, which can be forced to testify against you. Further, a tax lawyer who has extensive expertise in negotiating tax settlements and can guide you through the legal process. CPA, on the other hand, has limited knowledge and experience in this regard.

Finding a Tax attorney

Tax law is complicated and broad. Getting the wrong advice from a CPA or tax preparer can be expensive and lead to sanctions for steep fees and prison. You want a tax lawyer who communicates strategically on your behalf with the IRS or the state tax department. You want a tax attorney who will provide your tax troubles substantial relief. hillhursttaxgroup.com can help you with all your tax-related concerns.