Situations When It is Good to Have a Tax Attorney

Filing taxes each year can be a difficult chore, even in the simplest financial condition. Yet, when dealing with more intricate tax matters, this murky procedure can be downright frightening to attempt on your own.

Having a tax attorney on your side can help you in many ways, including with your income, deductions, family makeup, and professional life. They can make it simpler to remain on top of any tax issues you may be already facing to prevent them from worsening or to avoid other problems from arising.

In order to find a tax attorney, start by looking in your local area. For example, if you’re from the city of Las Vegas in Nevada, simply look up your area online to find the best tax attorneys in Las Vegas and read reviews by previous customers. This will give you an idea of how reliable they are, and if they’re the right fit for your needs and budget.

In this post, we'll examine the duties of tax attorneys and explore when hiring one would be a good idea.

What is a Tax Attorney?

In simple terms, a tax attorney is a lawyer practicing only in the domain of tax law and procedure. Tax attorneys, like legal professionals in other fields, often choose to focus on a subset of tax law. This can include state, local, personal, corporate, and international taxes, tax litigation, etc.

Graduating from law school is the first step towards receiving tax attorney certification, followed by the Multistate Professional Responsibility Exam (MPRE) and the bar exam in their home state.

To practice law, a tax attorney must first get a JD, or Juris Doctorate. They might work for a variety of organizations and enterprises, federal and state government agencies, legal firms, or even tax courts.

Situations When a Tax Attorney Might Be Useful

If You Owe Money to the IRS

Every year, millions of taxpayers are proven to have underreported their income or taxes owing, costing the government billions of dollars in unpaid taxes, interest, and penalties. 

Tax debt, whether from failure to file or from filing mistakes, can be stressful and anxiety-inducing. If the debt isn’t settled before the set date, IRS is free to take legal action, such as garnishing earnings, filing a lien on your property, or seizing assets. You might also face criminal penalties if you are unable to repay that obligation on time.

So, having unpaid tax debt is a very good cause to seek the counsel of a tax relief attorney. The competent tax attorney can assist you in communicating with the IRS and negotiating a reduced settlement amount (an Offer in Compromise) on your behalf.

A tax attorney can help you file your tax return, as well as draft a payment plan to help settle your debt. Having a proactive IRS tax attorney on your side during negotiation and settlement can help you avoid a lawsuit and wage garnishment.

If You Wish to Dispute a Tax Bill

Even if you maintain meticulous records, work with a CPA, and submit your taxes on time, you can get audited or receive an unexpected tax charge. An IRS tax attorney can explain the problem, identify the source of the mistake, and provide advice for the future.

A tax attorney can help you with both the decision to take your tax debt case to court and assistance in coming up with a plan to pay your dues.

If You're Considering a Significant Business Move

There might be significant tax consequences depending on how you set up and run your company, from the very beginning to the present. And it's not cheap to make incorrect choices.

Advice from a tax attorney can help you avoid making expensive errors and receiving hefty tax bills while taking advantage of specific laws and tax rules, all of which can help your company save money.

When Making a Substantial Financial Commitment

If you ever come by a significant amount of money, you’ll probably want to put it to productive use. This could be an inheritance, a lottery win, or the sale of valued stock options. However, when dealing with a large sum of money, it's essential to make the necessary investments in the correct account to avoid any unwanted tax penalties.

A tax attorney can help you decide where to invest your money and how to monitor its progress over time so you can avoid any unnecessary penalties.

Final Thoughts

Hiring a tax lawyer could prove to be a wise investment. But, whether you have outstanding tax debt, wish to discover methods for your company to save money on taxes, or just need to organize your estate in a tax-advantageous method, it can be well worth the investment to hire an experienced tax attorney who can help you.