Are you facing a tax issue outside of your experience or knowledge? If so, your best bet is to contact a professional to help you.
If this issue is minor—like being unsure how to file a tax return—you may only need to hire a tax accountant (CPA). Oftentimes, though, you’ll need actual legal advice, which involves contacting a tax attorney.
Not sure whether you need a tax attorney to represent you? Here are five common situations where you should have one on your side.
1. You’re Behind on Tax Returns
If you’re dealing with years of unfiled returns, hiring a tax attorney makes a lot of sense. For starters, they can help you get those returns processed. They can also create a payment plan that benefits both parties.
Having a tax debt attorney also means you won’t face the IRS alone. That can be nerve-racking, especially when you owe several years’ worth of taxes. A tax attorney can handle all the communication with the IRS for you.
2. You Need Help With Estate Planning
Want to make sure your estate will get parceled up the way you prefer? Are you worried about your children getting hit with estate taxes? In these (and many other) cases, a tax attorney can help you get your estate in order.
In the U.S., tax attorneys need to be well-versed in all aspects of estate planning. They can set up trusts, take care of the paperwork, and make the process of succession as painless as possible.
3. You Want to Set Up a Business
To set up a business, you’ll first need to decide how to incorporate it. Your options likely include sole proprietorship, partnerships, and corporations. You’ll also need to apply for an EIN, set up business accounts, and so on.
Even if you’re simply rebranding an existing business, there’s a lot to keep track of. That’s where a tax attorney comes in. With their experience in business planning, they can help with every step of the process.
4. There’s a Tax Lien on Your Property
If the IRS places a lien on your property, you know they’re playing hardball. Chances are, you ignored all their notices about the back taxes you owe them. In some cases, they may even intend to file criminal charges.
Whatever the case, it’s important to have an attorney who will negotiate with the IRS. Whether you need to make a lump-sum payment or work out a payment plan, an IRS tax attorney will help you reach a solution.
5. You’re Undergoing a Tax Audit
IRS tax audits can be stressful. Other than demanding your financial records, the IRS may come to your place of business. If you’re not sure how to approach the situation, get a tax attorney to help you.
Again, think of the attorney as a buffer between you and the IRS. They’ll ensure you have all the records the IRS wants and help you send them. If the IRS needs more information, your attorney will take care of it for you.
Hire a Tax Attorney Today!
If you’re used to managing your tax affairs alone, hiring a tax attorney may seem like overkill. That said, the above examples show that working with them has many benefits and will often be your best choice.
Want to know more about the importance of hiring a tax attorney? Keep reading our legal-related content!