As a tax payer, unforeseen issues often arise. These might be easily controlled or might warrant the need for professional interference. These are the times when a tax attorney will serve as your saviour.
A tax attorney is a type of lawyer who specializes in tax law. These professionals are uniquely equipped to handle legal tax matters, such as settling back taxes, helping with unfiled returns, halting wage garnishment, undoing property liens and account levies, and coming up with compromises with the IRS.
Some tax attorneys also have backgrounds in accounting, but their expertise is focused on the legal implications of tax situations. If you’re facing a complex accounting problem as well as a legal matter, you might want to look for an attorney who’s also a certified public accountant (CPA) or enrolled agent (EA) so you can cover both bases.
But when do you know you need atax attorney? Some instances are noted below-
1.If you pay Estate Tax
Estate Tax <www.irs.gov/pub/irs-pdf/f706.pdf>is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death. The fair market value of these items is used and their total is your “Gross Estate.” Once you have accounted for the Gross Estate, certain deductions (and in special circumstances, reductions to value) are allowed in arriving at your “Estate Tax.”
A tax lawyer can help you devise estate-planning strategies to help you stay below the exemption threshold and reduce your tax liability as much as legally possible.
2.If you have a business
Any business setup you choose will have tax returns. A tax attorney can advise you about the structure and tax treatment of your company, including some non-tax issues which could save you ample time and troubles tomorrow.
3.If You Have Legal Issues
If you plan to bring a lawsuit against the IRS, if you’re under criminal investigation by the IRS, or if you want to seek an independent review of your case before the U.S. Tax Court <www.thebalancesmb.com/how-tax-court-works-397664>, you’ll require the help of a knowledgeable, experienced lawyer.
As a taxpayer, talking with IRS tax representatives can be confusing and frustrating. Signing IRS Form 2848 allows a tax attorney to represent you before the IRS, so you can leave IRS communication to your lawyer. Federal Tax attorneys understand how to communicate with the IRS effectively, so their efforts can provide much more efficient resolutions.
*4.**Negotiating Tax Settlements***
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Tax attorneys can help you negotiate complex resolutions like instalments, payments, offers in compromise, tax levy or lien release, and penalty abatement. All of these issues understandably require a Federal tax attorney to get the job done.
Tax preparers and Tax attorneys are our most resourceful allies when it comes to handling tax returns and any problems that tax filing can give rise. Professional tax services like National Tax Preparers of America (NTPA) can help you through your tax issues while providing legal support.
