If you’re getting in hot water with the IRS due to back tax debt, you may be able to swim on your own for a while. But the time may come when you’ll need a tax attorney by your side. But when is it necessary for you to hire one? It may not be as black and white as you’d like, but there are certain times when you’ll have to hire a tax attorney, and others when you should.
When the Going Gets Tough, Get a Tax Attorney
IRS Audit
If you’re going through an IRS audit, a tax attorney is a must. Some tax attorneys are former IRS agents, so they know when IRS agents are following the rules and when they’re not – and stop any IRS abuses.
Also, laypeople shouldn’t communicate with the IRS. The IRS always tries strongarming average Joes because they’re strangers to the auditing process. An attorney can communicate with the IRS on your behalf, and can be there every step of the way while you’re being audited to prevent the IRS from taking advantage of you.
Back Tax Debt Help
Tax attorneys are also important for settling back tax debt cases, helping to make sure you don’t pay more than you have to.
And perhaps most importantly, tax attorneys know all the important court cases, and the tax code. So if the time comes to challenge an IRS decision, you’ll have a skilled advocate on your team.
A Tax Attorney & the IRS
Another time you’ll need to hire a tax attorney is when you’re likely to be subject to criminal prosecution by the IRS.
The IRS doesn’t take tax fraud or tax evasion likely, and it pursues criminal cases without mercy. If you’ve committed or think you’ve committed either of these two offenses, contact a tax attorney immediately. They’ll know how to protect your rights and make settlement offers for back tax debt.
Bankruptcy Help
A tax attorney can also help you file for bankruptcy and wipe out your back tax debt. Bankruptcy is similar to tax law in that it’s a federal issue, but it’s a different set of laws and different court system. However, bankruptcy and tax law are similar in that they deal with financial matters, and an attorney might be able to help you out in both fields.
Business Tax Help
If your business got caught up in tax debt, it may be ripe for a restructuring. Tax attorneys are skillful in advising businesses on how to restructure themselves with the goal of limiting tax liabilities and maximizing its financial dynamics.
It’s Time for a Tax Attorney
If your business has been consumed with back tax debt, or if you’ve found yourself with a back tax bill that you don’t know how to handle, some tax advice is probably necessarily. Hiring an attorney is the first step toward starting over with new financial footing.