However, if your condition worsens, you may require the services of an attorney. Tax law is a specialized area of the law, and tax attorneys are dedicated to staying on top of the constantly evolving landscape of tax legislation. Additionally, they can assist firms in informing and advising clients on tax-related and estate-planning matters; they can even represent clients at IRS hearings.
With the help of a tax helpline, you’ll learn about four situations in which consulting a tax attorney makes sense.
1. Your tax situation has gotten increasingly complicated over the years
Inheriting money or land outside of the United States may be a possibility for some people. Alternatively, you may have had a divorce or adopted a child in your life recently. Accountants aren’t attorneys, so they can’t always tell you what you need to know to file your taxes correctly. However, in more complicated instances, you may require legal advice on how to proceed.
Even though it may be tempting to try to solve this problem on your own, this can really make things more difficult. To avoid unnecessary stress and fines, it’s important to handle your tax position appropriately from the beginning, so you don’t have to deal with the consequences later on.
2. Starting a business, either you or your spouse
Possibly, your spouse has gone into business for themselves. The tax attorneys can help you navigate the process of setting up a new business, which can have a substantial impact on how you submit your taxes. A tax attorney’s insight might be important when trying to figure out why certain decisions make sense in particular situations.
A tax attorney can give advice on how to minimize depreciation, get a faster return on the purchase price, and more if your spouse is purchasing an already-existing firm. By planning ahead of time and according to all applicable tax regulations, you can save money on your taxes, prevent legal issues, and avoid incurring fines and interest.
3. You owe back taxes
A tax payment delinquency can have a serious impact on your financial well-being and should be remedied at the earliest opportunity. The Internal Revenue Service (IRS) provides qualified individuals with monthly instalment plans to help them keep up with their tax obligations. In some cases, you may be able to address the matter yourself, especially if you can catch up in less than 120 days using an automatic withdrawal plan.
An attorney can help you if the sum is high, or if you’ll need more than 120 days to catch up—or if your goal is to ensure that your actions are in accordance with the law. It’s possible to get a better bargain on past taxes, fines, and interest if you work with a lawyer who is familiar with this subject.
4. An audit is taking place on your behalf
Even if you were confident in your tax return and payments, hearing that you’re being audited may be quite a frightening experience. It’s a good idea to consult with an accountant throughout an audit, even if you haven’t done anything wrong. And if you wish to challenge the audit or go to court as part of the process, a competent tax attorney is essential.