5 Reasons Why You Should Hire A Tax Lawyer Right Now

Tax laws are complex and difficult to understand for common people. Even if you are diligent with filing returns and paying taxes, you may still get into trouble. You could fall behind due to negligence and have the IRS coming after you. Or you could get an IRS notice for not filing the correct information or failing to disclose a part of your income. Whether it happens intentionally or unintentionally, tax trouble is a genuine cause of worry.

It is best to seek professional help when you encounter any of these issues. Though you may think that you can handle the situation alone, it can be tough. Moreover, you should not entrust such issues to your CPA because they are experts in accounting, not law. Here are some situations when you should hire a tax lawyer sooner rather than later.

You are being audited by the IRS

You need legal representation when you get an IRS audit. The tax attorney will negotiate a settlement with the authorities on your behalf. Having a professional to handle things is beneficial because they can get you genuine relief. They can do it by negotiating an offer in compromise, installment agreement or penalty abatement. However, you must understand that the IRS seldom accepts offers in compromise. You need to convince them that you have minimal resources to settle your debt. And a good attorney can convince them to be as lenient as possible.

You are facing criminal charges

Forgetting to show a small part of your income is something that the IRS may consider less seriously. But you can expect criminal charges if you evade taxes by hiding large chunks of income. If you are accused of evasion or fraud, you must hire a tax attorney to handle the entire matter. Look for tax attorneys with nearly two decades of experience because they can save you from a major penalty or conviction. Professionals with good experience know the laws better and can get you out of even the most complicated situation. In case you are already convicted, they can at least help in reducing your term or penalty.

You are buying or selling a business

Another situation when you need the services of a tax attorney is while buying or selling a business. If you are a buyer, you may want a different allocation for recovering the buying price faster through depreciation. On the other hand, as a seller, you will want an allocation that maximizes capital gain. A tax attorney can help because they understand all that goes into saving up on taxes as a buyer or seller. You may want your business attorney to handle the situation but a tax specialist can make all the difference.

You are starting a new business

Starting a new business is another such instance when you will need the advice of a tax lawyer. What is the type of business entity that you want to set up? Will it be a sole proprietorship? Are you planning to incorporate it? The type of business entity that you choose to set up has its own tax implications. Only someone who knows tax laws inside out will be able to guide you about the tax treatment of your new business. If you plan to engage in overseas business, you will need them even more. They can counsel regarding foreign contracts and tax treatment.

You need estate planning advice

The best professional to seek advice related to estate planning is a tax attorney. So if you anticipate having a taxable estate to bequeath to your heirs, you must have a tax lawyer to guide you. If you fail to plan your estate, your heirs may have to pay massive tax on its value. However, proper planning can prevent a huge portion of the estate going to taxes. It is better to have things sorted out during your lifetime and a tax lawyer can help in this context. Though you may have to spend on their services, it will be a worthwhile investment. Now that you know about the situations when hiring a tax attorney is a good decision, you must do it. Being in trouble with the IRS particularly requires timely action. They can represent your case and get you out of trouble before it is too late. Also, make sure that you hire a professional with the right skills and experience and a good track record. Be careful while choosing the attorney because you need to collaborate with someone you can trust.