When Should You Hire a Tax Attorney?
Oct. 7, 2024
Taxes are often intimidating. When they become complicated, they can potentially lead to significant issues if not handled properly. That's where an experienced tax attorney comes in.
While you can represent yourself in certain tax matters, a tax attorney can provide invaluable guidance in helping you understand complex tax laws and advocate more thoroughly for your interests, such as making sure all relevant paperwork is accurately filed and representing you in any disputes with the IRS.
Located in Reno, Nevada, the Law Office of Scott N. Tisevich is dedicated to aiding individuals, families, and businesses in managing their tax-related issues effectively. Listed below are several scenarios of when you should consider hiring a tax attorney.
Scenarios When You Should Hire a Tax Attorney
Whether you're dealing with tax returns or larger business or estate-related latex, you could potentially face serious consequences if your taxes aren't handled correctly. While not every situation would require the services of an experienced tax attorney, some situations where hiring a tax attorney is essential include:
Facing an IRS Audit
If you've received an audit notice from the Internal Revenue Service (IRS), it means that they will be reviewing your tax returns and financial records for accuracy and completeness. This can be an overwhelming experience, as it involves facing potential penalties and interest charges if any discrepancies are found.
A skilled tax attorney can help prepare you for the audit, represent you during any meetings with the IRS, and ensure that your rights are protected throughout the process.
Significantly High Tax Debt or Owing Back Taxes
If you owe a considerable amount of money to the IRS, it's always advisable to consult with a tax attorney. They can help negotiate a payment plan that works best for your financial situation and advise you on any potential options for reducing your overall tax debt.
Dealing with Tax Disputes
Tax disputes, whether with the IRS or state tax authorities, can be complex and stressful. A tax attorney can negotiate with the government on your behalf, contest assessments, and even represent you in tax court if necessary. Their legal knowledge can help you achieve a favorable resolution to your tax issues.
Criminal Tax Investigation
If you face a criminal tax investigation, it's imperative to hire a tax attorney immediately. Unlike accountants, attorneys can provide attorney-client privilege, which means your communications are confidential. A tax attorney will defend your rights and work to minimize any potential legal consequences.
International Tax Issues
If you have income or assets in other countries, a tax attorney can help you navigate the complex international tax laws and treaties that dictate where and how your income will be taxed.
Starting or Running a Business
Starting or running a business involves various tax-related responsibilities, such as filing taxes, paying estimated taxes, and understanding tax deductions and credits. A tax attorney can provide valuable guidance for making sure your business complies with all applicable local, state, and federal tax laws and avoiding potential tax disputes.
Estate Planning
Effective estate planning ensures your assets are distributed according to your wishes while minimizing tax liabilities. A tax attorney can help you create a comprehensive estate plan, including trusts, wills, and other legal instruments, that are tailored to your unique financial situation.
Common Pitfalls of Not Hiring a Tax Attorney
Deciding to handle complex or intricate tax situations without the help of a tax attorney can lead to several pitfalls that may have serious financial and legal ramifications. Some of the common risks you might face if you choose to handle your tax issues alone include:
Inaccurate Tax Filings
Tax laws are complex and subject to frequent changes. Without the expertise of a tax attorney, there is a higher risk of making errors in your tax filings. These inaccuracies can result in penalties, fines, and even audits by the IRS, which can be both costly and time-consuming to resolve.
Missed Deadlines
Tax regulations often involve strict deadlines for filing returns and responding to inquiries from tax authorities. Missing these deadlines can incur substantial late fees and interest charges. A tax attorney makes sure that all deadlines are met, thereby avoiding unnecessary penalties.
Lack of Legal Representation
In the event of disputes or audits, having professional legal representation can be invaluable. Without a tax attorney, you may find it challenging to effectively argue your case, present evidence, and negotiate settlements with the IRS. This can result in less favorable outcomes, including higher tax liabilities or more severe penalties.
Overlooked Deductions and Credits
Tax attorneys are well-versed in identifying eligible deductions and credits that can substantially reduce your tax burden. Without a tax attorney's guidance, you might overlook these opportunities, leading to paying more taxes than necessary.
Exposure to Criminal Liability
In severe cases, such as accusations of tax fraud or evasion, a tax attorney is crucial. Tax attorneys can provide a defense strategy, ensuring your rights are protected under the law. Without this legal safeguard, you could face significant legal consequences, including fines and imprisonment.
Poor Business Tax Compliance
For business owners, adhering to all applicable tax laws is critical. Without the insight of a tax attorney, you may struggle with compliance issues, risk fines, and potentially jeopardize your business's financial health. A tax attorney ensures that your business structure and operations are aligned with tax regulations, mitigating risks.
What To Look For in a Tax Attorney
When searching for a tax attorney, it's essential to keep several key factors in mind to ensure you find the right fit for your needs. Here are some important attributes and qualifications to look for:
Experience: Ensure the attorney has extensive experience dealing with tax law cases similar to yours. Tax law is intricate and constantly evolving, so an experienced attorney will be better equipped to handle complex issues and offer the most current advice.
Proven track record: Look for a tax attorney with a proven track record of successfully handling tax disputes, negotiations, and audits. Client testimonials, case studies, and peer reviews can offer insights into their achievements and reliability.
Strong communication skills: Effective communication is crucial, so an attorney should be able to explain complex tax issues in understandable terms. Good communication also includes being responsive to your questions and concerns.
Accreditation and licensing: Verify that the tax attorney is licensed to practice law in your state and holds the relevant certifications, such as membership in state and national bar associations. Additional credentials in tax law, like a Master of Laws (LL.M.) in Taxation, can also be beneficial.
Ethical standards: Choose an attorney with a strong ethical foundation and professional integrity. Check for any disciplinary actions or complaints filed against them through online legal directories or your state's bar association website.
Personalized approach: Your case is unique, and so should be the approach to solving it. Look for an attorney willing to tailor their strategies to your specific situation, offering personalized advice rather than a one-size-fits-all solution.
Selecting the right tax attorney can greatly impact the outcome of your tax-related issues and provide you with peace of mind knowing you’re in capable hands.
Experienced Legal Counsel You Can Trust
Located in Reno, Nevada, and serving clients in Churchill County, Lyon County, Carson City, Story County, Douglas County, and Las Vegas, the Law Office of Scott N. Tisevich is committed to helping individuals, families, and businesses work through any tax issues they may be facing. He is dedicated to advocating for his clients' rights and helping minimize any potential tax burdens and legal consequences. Call today for a consultation.