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Ozzie Gomez
- October 22, 2023
Tax attorneys are specialized in representing clients in all sorts of tax situations. Simply put, they can put you back in the driver’s seat regarding your tax liabilities and tax preparation. Whether you owe back taxes, have an IRS audit, or need assistance with tax planning, a tax attorney or IRS Enrolled Agent is worth it.
And if you have never partnered with a tax professional before, then you might not realize the benefit. Fortunately, you came to the right place. No more wondering, “How can a tax attorney help me?” Read on to better understand why having a tax professional in your corner is a game changer.
You will also learn that there are some important signs to be aware of regarding hiring a tax attorney. While everyone’s financial situation is unique, there are some common scenarios in which a tax attorney is your best bet.
Is a Tax Attorney Worth It?
Before diving into the signs to be aware of, let’s highlight the benefits of hiring a tax attorney. Establishing the role will add a bit of context, and you might even be able to apply it to your situation.
First and foremost, a tax attorney is not the same as a CPA, or Certified Public Accountant. While both commonly handle tax matters, a tax attorney has a degree from a law school. Specifically, they have passed a state bar exam, which might qualify them for more than a CPA.
Not all tax attorneys work for a law firm. Some are independent, or work for organizations or companies and specialize in tax law. Should you choose, a tax attorney is one type of tax professional that has the legal authority to negotiate with the IRS on your behalf. There are many taxpayers who see a clear cut benefit in this type of arrangement.
To be clear, tax attorneys are not only for matters relating to criminal charges. There are all sorts of roles these tax professionals can play. And as mentioned, there are some common signs indicating this is tax attorney territory. Let’s get to those now.
Signs You Should Hire a Tax Attorney
As mentioned, everyone’s financial situation is unique. Additionally, the below list doesn’t encompass every scenario in which hiring a tax attorney makes sense. These are just a few common examples.
1. You Owe Significant Tax Liability
If you have not paid your taxes in a few years, you should get a tax attorney or Enrolled Agent. There are some taxpayers who skip tax payments thinking they are going unnoticed. To be clear, the Internal Revenue Service will keep the tab running, and they’ll hit you with that bill. However, this doesn’t mean you are out of options.
By partnering with a tax attorney, you can know precisely what those options are. Perhaps you need to set up a payment plan or get some of your tax liability reduced. A tax attorney can help you navigate the best possible avenue for such a situation.
But doing nothing about your back taxes is not an option. While it might seem like you are getting away with it, the bill will come due. Instead of waiting for that bill, you could get a tax attorney in your corner.
2. You Are Being Audited
Being audited is one of those things that most taxpayers think won’t happen to them. Because of this, they don’t have proper records or tax materials in order. This typically happens to those who are self employed. However, it can happen to any scenario that looks suspicious to the IRS.
But like owing back taxes, you are not out of options. A tax attorney can help you sort through the mess and make sense of the audit. Ultimately, they can set you on a path for success and meet IRS demands.
3. You Are Starting a Business
Starting a business is inherent with risks in and of itself. And this is especially the case if you don’t have your business taxes established properly. In terms of running a business, there are many tax considerations to be aware of. And you guessed it, a tax attorney can help you better understand them.
A tax attorney can also make sure you are setting up your business correctly. There are options when it comes to business tax structures. But without a tax attorney, how do you know which one makes the most sense for you? Don’t play this guessing game.
Instead, you could hire a tax attorney to make the process seamless. A tax attorney will make sure you understand your structure, and also your obligations. They will also help you take advantage of appropriate tax breaks that pertain to you.
Plenty of Other Reasons
These three reasons are among the most common, but they are far from the only reasons. Depending on your particular situation, there might be many needs for a tax attorney.
It is no secret that taxes can be intimidating. If they weren’t, then blogs like this wouldn’t exist. But the reality is that tax issues can be complex. To have a tax professional on your side is simply doing your due diligence and being prepared.
As mentioned earlier, a tax professional keeps you in the driver seat of your financial situation. Don’t let your tax liability get the best of you. Hire a tax professional and get the best of your taxes. Whether individual or business, there are benefits and advantages to partnering with a tax attorney or Enrolled Agent.
Schedule a free consultation and get a better idea of how our tax professionals can improve your situation.
