Many people prepare their own state and federal tax returns each year using an electronic format or handwritten forms. Others pay an accountant to do their taxes and sign off before filing them. But when should you consider hiring a tax attorney to handle your tax returns? Here are examples of when an attorney who specializes in this area of law might be needed.
If you operate a business from your home, you will likely have detailed transactions to report on your annual tax returns. These could include expenditures, profit, losses, and accounts receivable to name a few. Depending on the type and size of your company or business dealings, you may need to report employee information and pay certain taxes related to worker’s compensation and sales tax on products sold. Fortunately, you might be able to deduct business expenses based on the part of your home used for your job. A tax attorney can explain the process and help you complete the forms that are needed for filing taxes.
If you have an estate plan, or if you are handling the estate of someone who has passed away in the past year, you might need to file several forms detailing the financial status of their estate. This can be complicated, so it would be helpful to consult an attorney who deals with this area of law who can answer your questions and assist with filing the proper tax returns.
If your income changed substantially during the year due to illness, an employer change, or retirement, or other reasons, you may need help figuring out how to submit the correct tax forms. Gathering the right records can be challenging if you are not quite sure what to do. Make an appointment to discuss your income variations, whether gains or losses, with professional tax attorneys. Following the meeting, if you feel you can file taxes on your own, you can take that approach instead.
Since tax returns primarily report your financial status, holdings, and losses, there may be certain aspects that you are unsure of. For example, you might not clearly understand whether to claim your college student son or daughter as a dependent. Assessing your investment portfolio or a rental property that you own might also raise questions. Medical deductions on tax returns can vary significantly. A tax attorney can provide valuable information to help you file your taxes correctly.
Don’t take a chance on filing incorrect tax returns and getting audited. Make sure you know how to file the right forms or contact an experienced tax attorney for assistance.