5 Common Scenarios Where a Tax Attorney Can Be Invaluable — And Why Timely Hiring Matters
Taxes change regularly, A tax advisor can help you to master this complexity and secure the future of your company.
Tax lawyers specializing in tax law.
These laws are constantly evolving and changing, often making compliance difficult.
When you or your business are facing complex tax challenges, issues with the IRS, or simply want to make tax time a little easier, a tax attorney can often be a powerful resource.
Here are some good reasons why you should consider hiring a tax advisor .
1. You start a
If you are starting a business but are new to the process, hiring a tax attorney can give you the guidance you need to navigate the tax obligations involved.
This includes ensuring compliance with federal tax laws and all state and local tax regulations that may affect your business.
Having an attorney by your side can provide you with the information and support you need to understand your options while avoiding costly mistakes at every stage of the implementation.
Protecting business, finances and assets requires proper preparation and structuring.
Some business transactions have significant tax consequences, and without knowing the potential implications, the IRS and government agencies may own more than you think.
With the help of the right tax advisor, you are often much better equipped to:
- organize your business as a corporation, partnership or limited company
- manage capital gains and losses
- withdraw problem assets
- structured capital or construction income
- retirement opportunities. An experienced tax attorney can help you refine this approach and develop a plan that will ensure your success.
2- IRS Audit
Audit Expected Business owners aren't the only people who could use the help of a tax attorney.
While business partners or business owners are sometimes required to submit to an IRS audit, almost anyone can be notified of an audit at any time.
If this applies to you, you can hire an attorney to communicate with the agency and examiners on your behalf.
IRS Form 2848 allows you to give your tax attorney power of attorney to represent you before the IRS.
Your legal representative has the right to receive tax information on the subject and the current tax year. However, you can extend his access to additional reporting periods by entering them in the form.
The right attorney can also help you appeal certain post-audit IRS actions, pay off your debt, or make an offer of compromise with the IRS.
Please note that a CPA is not the same as a tax advisor,chartered Accountants typically help with tasks such as preparing tax returns and minimizing audit risk, but are generally not licensed attorneys and therefore cannot represent you in court.
Tax attorneys help with tax compliance and defense.
3- They take care of inheritance or inheritance tax.
Tax attorneys may deal with estate planning and tax decisions before or after an individual's death.
If you intend to leave your business or related assets to your spouse or children, some tax laws could deprive you of a significant portion of your funds.
Property taxes are an issue that a tax attorney may address when planning a property.
If you are the beneficiary of an inheritance, you may have additional tax obligations.
If you are unsure where you might be held liable, hiring a tax attorney can give you the experience to understand and manage those responsibilities without getting in trouble with the IRS.During this process, people often use both a chartered accountant and a tax advisor.
4 - Pending Tax Investigation
If you are accused of tax evasion and are subject to a criminal investigation by the IRS, it is best to seek professional help.
Convictions for tax evasion often result in large fines and sometimes significant prison terms. It is therefore important to have the best possible representation.
Additionally, tax attorneys are not required to testify against their clients, which is not the case for a CPA.
Tax attorneys can also help you fight a tax lien and find ways to pay for your tax debt.
5- You are unable to pay your tax debts.
Having money with the IRS can put you and your business in a difficult position, especially when the IRS requires payment terms that you cannot meet.
Tax arrears complicate things, but a tax attorney can help.
Your attorney can help you gather evidence to support your case in favor of a lower debt plan or debt repayment, possibly by negotiating lower payments and a more reasonable debt repayment period.
Solve your tax problems with tax attorney.
Tax attorneys can help you obtain an exemption from claims filed by the IRS.
They can also work with you to proactively prevent tax issues.
Regardless of your situation or needs, however, working with a tax attorney can help you and your business prepare for future tax challenges.