We all like to hope that we won’t need an attorney for our taxes. However, its not a bad idea to have that one”attorney friend” just in case. If you end up in any of these scenarios, you will want to go ahead and call him up. Trust us.
1. When You Have Gone Bankrupt
Declaring bankruptcy is tough enough by itself. You don’t need to find yourself worrying about how your bankruptcy has influenced your taxes. A tax attorney can help you with your situation and make sure that you don’t get stuck with hefty penalties, legal fees, or jail time. For instance, a tax attorney can tell you if your federal income tax debt will be wiped out.
2. When the IRS Is After You
If you’re involved in an IRS audit, are under criminal investigation by the IRS, or have committed tax fraud, then you require a tax attorney. During an audit, the IRS will analyze your tax return to be sure that your tax deductions and income are correct. A criminal investigation by the IRS is much more intense than a civil audit. The IRS investigates potential criminal violations of the Internal Revenue Code. Tax fraud, or tax evasion, is when taxpayers avoid paying their taxes, usually by providing the wrong information to the IRS.
3. When You’re Following the IRS
Suing the IRS? That’s a big task. Do not go at it alone. If you hire a tax attorney that has experience with the IRS, you will have a valuable source of knowledge, a great adviser, and a person to represent you in court. As somebody that has been through this before, your tax attorney knows precisely how to help you win. Did you know that there are 3 unique courts where you can battle the IRS? You may not, but your tax attorney will, and they can find out which court would best for your situation.
4. When You Are Starting Your Own Business
Personal taxes are extremely different from company taxes. Usually, you don’t need to get into a bit mess with the IRS if you make a simple mistake when filing your taxes. Consulting with a tax attorney can help you avoid making a costly mistake. When beginning your own business, you might choose to hire a tax pro, like a lawyer or accountant, to aid you long-term. To find a good tax attorney, you should ask friends and colleagues for personal referrals, look at advertisements, and look at professional institutions. Make sure you interview several prospective attorneys and find somebody who you are comfortable with.
5. When You Need To Protect Your Family’s Inheritance
When you pass away, you need to be sure to not waste the inheritance left for your family on taxes. A tax attorney can help you determine the best way to prepare the inheritance to decrease the taxes. For instance, a tax attorney will be able to tell you if you should establish a trust fund or a will.
Tax attorneys are financial assets that are valuable. They may seem to be a costly luxury, but they can assist you with issues that nobody else can.