Filing taxes and navigating tax laws is a stressful process and there are plenty of tax mistakes that you could be making without even knowing it. With tax codes changing on the daily and IRS policies undergoing amendments almost as often, it’s a complex process that’s difficult to grasp.
This is where a tax lawyer comes in. They have the expertise, knowledge, and ‘finger on the pulse’ of ever-changing tax laws. You may not think you have the need for a tax attorney, but there are a couple of reasons why you definitely do.
Keep reading to find out seven important reasons why you should speak with a tax lawyer today.
If You Are Being Audited by the IRS or Owe Taxes
Navigating an IRS audit on your own is a risky business. If you are being audited or you owe taxes, you should book a consultation with a tax attorney to help you with the process.
If you hire an attorney for taxes they can act as your representative before the IRS. It’s your best option if you want to avoid any enforcement action such as asset seizure or bank levies.
Your tax attorney will assist you to resolve any current tax issues and walk you through how to prevent future issues.
You probably don’t have the tax knowledge necessary to navigate all the nuances of tax laws. A tax attorney is equipped with the expertise to do this.
Business Owners You Should Know Tax Law
Business taxes are complex and if you don’t know what you’re doing, they can be stressful and lead to a lot of issues due to human error. You don’t want to land up in a position where your business is at risk of penalties or your business assets are at risk of seizure.
Tax attorneys are especially helpful for people starting a business. If you’re opening up a new business you need to understand tax issues and implications as well as tax requirements for your employees.
When it comes to business operations you’ll likely require a tax lawyer to see you through the IRC and regulations.
Tax Laws Are Constantly Changing
Tax laws are not only very complex and full of nuances, but they’re also frequently changing. It’s easy for you to make mistakes when handling your own taxes as you’re unlikely to have knowledge about recent amendments.
It is the responsibility and job of tax lawyers to keep up-to-date with the ever-changing tax codes and IRS policies. Tax attorneys are continuously studying these to understand how they will affect their clients’ situation.
Hiring a good tax attorney who knows when to adjust their litigation position or representation will ensure that you receive the best possible outcome.
You’re Considering Buying Rental Property
Do you understand depreciation and how a rental property will affect your income tax? These are important things to know if you’re on the market for a rental property, especially with the aim of making a passive income.
If you’re hoping to reduce your personal income tax then a tax attorney is your best bet. They’ll be able to take you through the finer details of rental property tax issues so that you can take advantage of the federal tax code.
You Haven’t Filed Tax Returns in a While
Are you worried about the IRS coming after you because you haven’t filed tax returns in a while? Or, perhaps you’ve received a notice of a bank account levy or wage garnishment. If this is the case, it’s recommended that you speak to a tax attorney as soon as possible.
The longer that you don’t take action, the higher the likelihood that you’ll end up in hot water with the IRS. You’ll have limited time to appeal actions by the IRS and reach an agreement. You don’t want to miss any deadlines after receiving the notice as your assets could be seized to pay for your tax debt.
If you haven’t filed tax returns in a while, a tax lawyer can speak to the IRS on your behalf and assist you with preparing and filing your returns. Similarly, if you land up in a bit of hot water with tax debt, tax attorneys can help you achieve a compromise with the IRS.
You Have Committed Tax Fraud or Violations
If you know that you have committed tax fraud or suspect a tax violation, your only option is to contact a tax lawyer immediately. This is not a matter to be taken lightly as criminal tax cases are extremely serious and you may face severe penalties or jail time.
If you’ve been charged with a tax crime, you’ll need to seek out the services of a tax lawyer who specializes in criminal cases to represent you.
If You’re Gifting Property
If you are transferring property to a loved one or are receiving property as a gift, you’ll need a tax attorney to help you through the process. There are plenty of federal tax implications involved in the transferring of property and you’ll need to understand them.
A tax lawyer can properly advise you about gifting an estate as well as assist you with drafting the documents that you will need.
Do You Need a Tax Lawyer?
Do you find yourself falling into one of the above categories that require a tax lawyer? Rather than putting yourself at risk of penalties or asset seizure, speak to a professional. And if you have your taxes in order but you’re starting a new business or thinking of buying a rental property, a consultation with a tax attorney is important to educate yourself on due process.
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