It does not matter whether you are a small business owner, corporate business owner, or an employee for a company, you do not know when you may be faced with a tax situation. If the tax situation is complex, you may need to hire the services of a tax attorney.
If you are fortunate, you will never have to deal with this type of situation. However, there is no way you can ever be sure you will not have the IRS contacting you about a tax related issue in the future.
If you have fallen behind on your taxes and the IRS is sending you letters, the situation can become very scary quickly because most people do not want to deal with the tax collecting agency. Although there are some tax situations that you may be able to handle on your own, there are other times when it is best to hire an experienced tax attorney.
Tax Attorney And a CPA
It is important that you understand the difference between a tax attorney and a CPA (Certified Public Accountant). While a CPA will be able to assist you with tax preparation and answer questions you may have, a tax attorney can assist you when a legal issue arises with your tax returns or other tax problems.
So, if you ever face one of the following situations, it will likely be in your best interest to hire a tax attorney.
Is The IRS Investigating You And Planning To File Criminal Charges?
If so, you definitely need to hire a tax attorney. This is a very serious type of situation, and one that you do not want to handle on your own.
Unfortunately, there are some tax situations when the IRS has no other choice but to pursue criminal charges against someone. Typically, this only occurs when tax evasion is suspected.
It is not only required, but it is law that you report income to the IRS and pay taxes on that income. If you do not, the IRS will send you notices. If you fail to respond to these notices, the agency may begin proceeding with criminal charges.
Are You Being Audited?
You will also want to hire a tax attorney if you are being audited. The tax attorney will work with you and the IRS to negotiate a settlement so you can settle the debt for less than you owe.
This negotiation can help create an installment plan, a compromise or a penalty abatement. Keep in mind that compromises are not regularly accepted by the IRS.
Should you contact a tax attorney regarding your tax returns? Although they may have some knowledge about tax returns, they are not the professional you should contact in this situation. Questions about your tax returns should be addressed to your CPA or tax preparation professional.
If you think you need to hire a property tax attorney, chances are you are facing significant legal tax troubles. Instead of waiting, contact a tax attorney as soon as possible.