When to Hire a Tax Attorney

The IRS tax debt is the worst one that you can have. Because you can never run away from the citizenship responsibilities. And, never-ending IRS notices can be your nightmare.

This daunting situation gets worse with garnishment or seizure possibilities. But getting a tax attorney on your side can make things easier. Their expertise can help you develop a smart plan and increase the chances of relief from some penalties.

When Should I Hire a Tax Attorney?

Nearly 60% of taxpayers hire professionals to assist them with tax preparation. A tax lawyer can offer legal advice on many things, like starting a new business or investing in crypto. However, you should strongly consider hiring a tax attorney for certain scenarios. Complex audits, criminal investigations, or large back-tax debts call for expert help. In these cases, professional guidance isn’t just helpful, but often essential. 

Significant Tax Debt ($10,000 or more)

After an audit, the IRS uses various collection methods. If you ignore your tax debt, the IRS can garnish your wages or seize your property.

If we talk about large debts, managing this process with a tax lawyer will be wise because the stress can prevent you from clear thinking, and a small mistake due to lack of information might cost you. Though, tax lawyers work out feasible resolutions and negotiate installment agreements or penalty reduction offers with the IRS to reduce your financial burden. 

Moreover, having two or more years of unfiled tax returns can afflict you because not filing a tax return is also a crime, like failing to pay tax debt. Addressing long-term unfiled taxes can quickly become a complicated task, fraught with legal jargon and intricate IRS policies.  

Owing penalties 

Your tax penalties may be a big part of your total tax liability. In this case, penalty relief could be an option for you. Benefiting from a penalty reduction can significantly reduce your debt, but you must prove your legitimate reasons for this.

Undergoing an IRS Audit

After receiving an audit letter, take action immediately. The IRS will review your tax returns from different years and request extra documentation. You also have the rights to appeal many IRS actions following an audit. However, working with a tax abatement lawyer may be a necessity as they are experts in tax laws and procedures. They ensure your rights are protected, help you understand them, prepare your paperwork, and represent you during the audit process.

CPAs, EAs or tax relief companies?

Local CPAs and EAs have experience with local tax laws, so it may make more sense to work with them in your region. On the other hand, larger tax relief companies have a lot of resources and experience with different tax issues. Besides, they might have a fully professional team, which can handle complex tax situations and provide a broader range of services. That is, they may be more successful in dealing with the IRS.

Hiring a Tax Relief Attorney vs. Handling Tax Issues Independently

When handling your tax issues without counsel, you have full control over the process and decisions, and you avoid attorney fees. However, the whole process will be time-consuming, requiring extensive research into tax laws. Without expertise, you risk incurring more penalties or experiencing unwanted outcomes.

Hiring a tax relief attorney might involve higher upfront costs, but it offers significant benefits in expertise, negotiation, and legal protection.

For high-stakes tax issues, the benefits of hiring a professional often outweigh the costs. But for simpler cases with smaller debts, handling the matter on your own might be more feasible.

How Can a Tax Attorney Help You? 

A tax attorney can help you with IRS enforcement actions, audits, and disputes. Your tax lawyer represents you in tax court and negotiates with the IRS.

Unlike CPAs and general accountants, tax attorneys have specialized knowledge and legal expertise in tax law. While a CPA can handle tax filings, you may need a tax lawyer for complex tax issues. And, they also provide strategic advice to prevent future tax issues.

What are the benefits of hiring one?

• Expert negotiation skills → better outcomes than on your own.
• Better knowledge of laws and rights → ensures your rights are protected
• Stress relief → professional handling provides significant peace of mind
• Strategic advice → personalized solutions based on specific circumstances

Step-by-Step on How to Take Control of Your Long-Term Unfiled Taxes

It is understandable if you want to regain control independently your financial future. For this aim, we have prepared essential tips for tackling long-term unfiled taxes. 

1. First of all, request your transcripts to understand what the IRS has on your tax file. 
2. Then gather all financial documents.
3. In this stage, first sort tax returns for any years when a refund might be due, but is close to expiring.
4. File past returns to get refunds and reduce tax burdens.
5. Do you also face penalties? Seek a penalty abatement. To do this, document your reasons without mistakes.
6. Then, based on your financial situation, set up a payment plan with the IRS.

How to Find a Tax Attorney Near Me

These days, you can never be sure which tax relief companies are really effective. For a positive experience and outcomes, hire a knowledgeable, trustworthy, and capable tax debt attorney. Ensure you find a reputable one.

1. Ask friends, families, or your CPA for attorney recommendations based on their positive experiences. 
2. Check online reviews and ratings on platforms like Google, Yelp, Trustpilot, or legal directories such as BBB to verify the reputation of potential attorneys.
3. Read past cases and their outcomes from companies’ websites. A proven track record of client success is preferable. 
4. Ensure the attorney holds a license and has a strong background in dealings with the IRS. Look for certifications such as membership in the American Bar Association. 
5. On the initial consultation, test their knowledge, willingness to answer questions, and professionalism. A trustworthy attorney should provide clear explanations about their fees, process, and expected outcomes. 
6. Check the company’s establishment date. Older companies often have more experience and stability. 

Final words

Citizens may not know all the details of the law like lawyers do because lawyers have trained for years and have a lot of experience dealing with similar cases. They know which steps to take in which situations to get you the best results.

Do you need someone to talk to? We are just a phone call away for a free, no-obligation consultation. We will answer all your questions and explain the steps.

Feel relief from the initial call.