Many taxpayers always make a point of staying clear of IRS. Once they have filed their tax returns, they sit back and hope that they do not draw the ire or interest of this agency. However, owing to its responsibility of collecting taxes, this agency can at times not help but reach out to citizens who fall behind on paying taxes, failed to file their income returns, or somewhat went against the rules of the agency. When the IRS contacts you, the chances are that this will invoke the immediate feeling of panic, stress, and uncertainty. Since the process of dealing with the IRS could be an anxious experience, individuals are often advised to hire an attorney to assist them to deal with the IRS.
While you might not believe it, the truth is that if you’re looking to save yourself and your small business from IRS interest, penalties, and probably criminal action, it’s crucial that you hire an expert in tax representation since they are better poised to handle your situation. Tax attorneys are licensed, trained, and experienced o deal with all technicalities that are involved in tax resolution and settlement. Besides that, there are several reasons why you should hire a tax attorney when the IRS requests to audit your business.
Taxpayers Who Have Legal Counsel Receive Better Treatment
It could be illegal and unfair, but it is human nature as well. Most IRS agents are extremely tough and if they can easily get away with bullying a taxpayer into their own interpretation of tax laws, they definitely will. A tax attorney can help make sure that the IRS is sticking to the rules and giving you fair treatment. IRS investigators will be more cautious when asking any inappropriate questions or trying to waste your time with many unnecessary requirements if they are aware that they have to deal with a tax attorney. You should never worry about the IRS agents getting upset because you hired a tax attorney. In fact, the good IRS investigators prefer when they have to deal with an expert in tax laws since they will not have to waste their patience and time trying to explain all the details of a tax audit and any other IRS guidelines. Actually, most IRS agents’ view hiring a tax attorney https://deanhineslawyer.com as a sign of good faith to find a solution to all tax issues.
While a few rotten eggs might resent you hiring an attorney and try to talk you out of doing it, that is when you will really need an attorney behind your back. Always be on the watch out for any IRS agents who do not want to deal with a tax law expert.
IRS Has Serious Muscle
The IRS is a massive agency, probably one of the most powerful ones in the world. From 2008 all the way to 2017, hundreds of bankers from Israel, India, Switzerland and other nations have been indicted for trying to help wealthy American citizens squirrel their billions into offshore accounts. And if you think this is just a bluff, you should consider talking to Raoul Weil, a former banker. In October of 2013, he was tracked down to Italy while vacating with his wife and brought back to the United States. He was then tried for conspiring to aid thousands of Americans hide more than $20 billion in different accounts at UBS. If you fall behind paying your tax or filing your income returns, seek legal counsel before trying to anything that could land you in more problems.
The IRS Also Thinks You Need An Attorney
The IRS has an independent organization within it known as the Taxpayer Advocate Service which is mandated with the role of making sure that you receive fair treatment and aid you with resolving all problems you could have with the IRS. While it is quite unlikely that an attorney from the Taxpayer Advocate Service will fight for your interests as aggressively as the regular tax law expert, they are actually better than having no representation, if you cannot afford to pay for an external lawyer. And if money is the problem, there is the option of Low-Income Taxpayer Clinics. Despite the fact that IRS partially funds these clinics, they are entirely independent and are usually run by academic institutions and nonprofit organizations.
A Tax Attorney Will Represent You in a Criminal Investigation
Certified Public Accountants should be your go-to-person for all your accounting needs. And when it comes to asset management, business budgeting, and tax planning, CPAs are, all aspects being equal, more useful than tax law experts. However, when you are in dispute with IRS, mainly if they accuse you of tax evasion or tax fraud, a tax attorney is your best bet. A tax attorney is the only individual who will represent you in a court and give you the necessary legal analysis and advice. And if that is not convincing enough, here is something else you should consider: attorney-client privilege. Contrary to accountants and Certified Public Accountants, a tax law expert cannot be coerced to testify against their client in any criminal proceeding.
If You Feel You Need An Attorney, Then You Probably Do
Does it necessarily mean that you will need a tax attorney each time you are contacted by the IRS for an audit? Absolutely not. You can easily deal with small omissions and mistakes on your own by getting in touch with your tax preparer. However, if your case has a possibility of soaring, you will need to reach out to a qualified and experienced tax law expert. The rule of thumb should be; if you find yourself questioning the seriousness of your issue to merit a tax attorney, it is probably serious and will need the intervention of a lawyer. Some quick consultation with a tax attorney can help save you hundreds or thousands of dollars in unwarranted legal fees. Hiring an attorney sends IRS a powerful and precise message; that you are serious about the investigation and are willing to cooperate with IRS to avoid any criminal charges.