Using a Tax Attorney
Though many taxpayers are capable of preparing and filing their own taxes, hiring a professional can be helpful. This often means hiring an accountant or bookkeeper. But in some situations, a tax attorney is necessary.
When To Hire a Tax Lawyer
Understanding when you need a tax attorney can be difficult to determine. Few areas of the law are as complicated as the tax code. The Internal Revenue Service (IRS) uses many tactics to ensure it collects the full amount from taxpayers.
For example, a common reason to hire a lawyer for taxes is an audit that indicates the IRS may pursue fraud charges. An audit or lawsuit could result in the loss of property, wage garnishment, and even imprisonment.
Getting the assistance of a tax attorney early can help prevent a potential problem from getting to tax court. Negotiating an agreement with the IRS can also help you save money on late fees, penalties, and other costs that can arise.
Tax controversies have potentially serious consequences. It may be best to consult with an attorney even if you are uncertain that you need one.
Choosing the Right Tax Attorney
You’ll also have to decide which attorney or law firm is right for you. Whether for tax preparation or a tax problem, your unique situation may benefit from particular skills.
Some legal services focus on specific issues, such as:
- Small business and self-employment tax filings
- Tax fraud, evasion, tax-related identity theft, and financial crime legal representation
- Estate planning for tax liabilities
- International tax compliance
- Counsel in other languages besides English
- Tax debt and payment plan negotiations
- Matters requiring a certified public accountant (CPA)
- Corporate tax and audits
Depending on your concerns, you might want to get legal assistance with experience in the same area. It’s beneficial to work with a lawyer near you who has familiarity with local tax laws.
Tax Law Resources
Whether or not you retain an attorney, access to all the tax law resources available to you is important. Although an attorney can provide guidance, a better understanding of the tax system can help you navigate it. Even someone who has no problems and a relatively simple tax situation may need help determining which kind of tax form they should be using.
The IRS and other organizations provide guidelines, tutorials, and other resources to help you make educated decisions about your finances. FindLaw has collected and organized these resources to make things easier for you.
In addition to links to resources, you can also view the most frequently requested IRS publications, a helpful list of requirements for the use of the main federal income tax forms, and a glossary of common tax terms. You can also look at the Treasury Regulations, which provide the official interpretation of the Internal Revenue Code, and guides for the tax agencies of all fifty states.
Making Legal Help More Affordable
Several types of legal aid resources offer tax help. These options may be available to taxpayers who can’t afford to hire a tax professional but need support. Taxpayers’ eligibility is typically based on their income.
Low Income Taxpayer Clinics (LITCs) and the Volunteer Income Tax Assistance (VITA) IRS program are examples. Some lawyers provide pro bono (free) or discounted services, often through nonprofits or the state bar association.