Tax season is quickly approaching. For many, this is a time for panic and scrambling around, spending late nights researching tax information and trying to come up with documentation. Tax season is from when the IRS begins accepting tax returns, typically in January, to when the filing deadline arrives, which is typically in April. It is a high-stress time for many, and people often turn to accountants for help. Accountants are highly useful in helping with returns and are knowledgeable on tax processes. However, there are certain situations you may encounter this tax season where it is necessary to hire a tax attorney.
A tax attorney has many different roles they can fulfill for a client that hires them. Tax attorneys are there to help clients navigate the complicated legal aspects of the taxation system and be an advocate on their behalf in a variety of different situations that might arise stemming from and related to taxes. Tax attorneys are available to represent the interests of both businesses and individuals, and having one in your corner this tax season might be essential, depending on your circumstances.
There are several different situations where a tax attorney might need to be called upon for assistance. For those that are unclear about when the usage of a tax attorney may become necessary, we’re here to help. Let’s take a look at five different circumstances when you should hire a tax attorney.
The IRS is Auditing You or Your Business
One of the last things anyone wants to hear is that the IRS intends to audit them. An audit from the IRS is an incredibly nerve-wracking experience that is stressful and grueling, and this is not a situation you want to go into without assistance. If the IRS is auditing you or your business, you can receive 20% or 40% penalties, or in some severe cases, 75%. It is a logistical and financial nightmare. A tax attorney is adept at navigating this sort of situation and will act as your representation. A skilled tax attorney can prevent the enforcement of things like asset seizures and can be an ally in resolving the issue at hand.
You are Estate Planning
The goal many have for their lives is to leave their family behind with as much as possible. The reason so many of us work so hard is to provide for the ones we love. This is an admirable goal, and if you are hoping to leave behind the most possible for your loved ones, estate planning with a tax attorney is a great decision. A tax attorney will help you navigate things like the transference of assets, how to cut down on estate taxes, and help you with the overall strategizing and paperwork involved in this complicated process. They are the best bet for these kinds of serious considerations.
You are Looking to Start a Business and Need Tax Advice
Starting a business is a brave decision that can yield major results. Starting a business allows you to develop something that is your own, to be your own boss, and potentially create a brighter future. Before you launch any business, meeting with a tax attorney is the fiscally responsible decision. A tax attorney knows the ins and outs of the taxation system intimately and can help you develop a strategy for your business’ taxes. They can inform you of the tax implications of the industry you are entering and can educate you about the employment process as it pertains to taxes. It is a critical part of the business planning process.
You Have Outstanding Tax Returns
They say two things in life are certain: death and taxes. There’s no avoiding the IRS indefinitely, and if you haven’t filed your returns in a while, don’t be content to let the situation just play out. Be proactive, get the ball rolling, and protect yourself long-term by hiring a tax attorney. The more you wait, the higher the likelihood of your situation worsening. A tax attorney will act as a liaison to the IRS, getting you need-to-know information and paperwork and helping you fulfill your tax obligations. They can help you resolve the situation in a way that avoids the serious repercussions that might have been in store.
You Need Any Type of Legal Representation in Taxation Matters
These four above situations are just some of the circumstances that can occur, but the truth is, there are too many types of situations to name that a tax attorney may become a necessity. If ever you have questions about taxations, want to dispute your taxes, or are seeking tax relief, a tax attorney is an undeniable positive to have in your corner. Tax attorneys can help sue state or local tax authorities and even the IRS, they can negotiate or contests issues, and in general, they are people with a high-level understanding of taxes that most don’t have. If you are ever in doubt about when to hire a tax attorney – ask one. Seeking the help of a tax attorney can make a world of difference. Don’t let this tax season be the source of duress that it often is. Work alongside a tax attorney for a better experience and outcome.