Facing Tax Troubles? 4 Reasons You Need Legal Assistance

Law Blog

If you're facing legal issues with the IRS, you need to hire a tax attorney as soon as possible. You can't afford to go up against the IRS without legal representation. Before you try to deal with the situation on your own, here are four reasons why you need legal representation.

Protect Your Privacy

If your taxes are being audited, you may want to work with a tax lawyer instead of a CPA. You may use a CPA for your yearly tax preparation services, but you're going to need more assistance for your audit. This is particularly true where your privacy and the privacy of your financial records are concerned. During an audit, the IRS will look for information anywhere they can find it, which could include your CPA. Unfortunately, if you've discussed private financial matters with your CPA, they could be required to testify regarding that information. However, any information you discuss with your tax attorney will be protected by the attorney/client privilege, which means your private communications will remain private.

Ensure a Proper Settlement

If you have a large tax bill, you want to ensure that you get the best settlement possible. A tax attorney can help you to know what settlements are available, which can be a really good thing for your finances. When you work with a tax attorney, they'll make sure you get the right settlement for your tax debt. They'll also ensure that you have enough time to pay your debt, which could include arranging a payment plan for you.

Obtain an Offer in Compromise

If you're unable to pay your tax debt and if being required to pay your tax debt would place an undue financial burden on you, a tax attorney may be able to obtain an offer in compromise for you. An offer in compromise allows you to get out from under the bulk of your tax liability, which is beneficial if you're unable to work due to a disability or if a normal payment plan would be ineffective. Once an offer in compromise is accepted, your tax liability will be closed.

Provide Counsel for Criminal Investigations

If you're facing criminal prosecution for your tax problems, you need to hire a tax attorney as soon as possible. Criminal prosecution for tax fraud or evasion can lead to fines, penalties, and even prison time. A tax attorney can work to help you avoid those situations.

For more information, contact a tax advisory service.


1 August 2019