Let’s face it: certain circumstances may require the services of a professional tax attorney. Tax attorneys generally possess extensive expertise in tax-related matters and can provide top-tier guidance to clients on complying with tax laws, communicating with the IRS, and other related issues. In this article, we will explore seven common situations in which hiring a tax attorney may be the right choice.

1. Estate Planning

Whether you wish to ensure that your property will be divided according to your wishes or you are interested in setting up trust funds, estate planning can be a complex process. It is important to keep in mind that estate planning requires compliance with tax law and regulations. It is highly advised to work with a proficient tax attorney while getting your estate in order. Tax attorneys can even assist with establishing non-profit organizations with your estate.

2. Starting a New Business

Establishing your own business is exciting, but it may be more complicated than you think. It requires proper incorporation with the relevant authorities, setting up business bank accounts, and complying with tax authorities. It is essential to get advice from a tax attorney early on in launching your business, since it can help you avoid issues with the Internal Revenue Service (IRS) in the future. If your business will employ workers, a tax attorney can offer guidance on your responsibilities with respect to withholding taxes, filing 941 returns, and making federal tax deposits. Moreover, tax attorneys can help you structure your new business in a way that minimizes your tax responsibilities.

3. Unpaid Taxes

If you have an outstanding tax debt with the IRS or state tax agencies, you should consult with an experienced tax attorney. It is crucial to sort this matter with the relevant authorities before they begin garnishing wages, imposing penalties and in extreme scenarios - seizing your assets. A skilled tax attorney will examine your personal circumstances and find the best way for you to settle your tax debt, such as setting up a long-term tax installment agreement with the IRS.

4. Audits or Investigations

It can be unfortunate to learn that you are facing a tax audit or investigation with the IRS. Nonetheless, enlisting the services of the right tax attorney can help you navigate this stressful process. Working with a tax attorney during an audit or investigation can provide significant benefits, including their ability to help you comprehend the particular tax issues at hand. They can also offer advice on the most appropriate course of action to take, depending on your specific circumstances. 

5. Tax Liens and Penalties

Discovering that the IRS plans to garnish your wages, place tax liens on your property and impose strict penalties can be a distressing experience. In some extreme cases, the IRS may even file criminal charges against you for failing to pay your taxes. However, knowing your rights in these situations can help you minimize the potential harm and damage. Hiring a professional tax attorney to act on your behalf is highly advised in these situations. Additionally, a tax attorney can assist you in developing a payment plan that keeps your penalties at a minimum.

6. Complex Tax Issues

Tax situations can vary in complexity, with some being more intricate than others. If you are dealing with an especially complicated tax matter, it may be beneficial to seek the guidance of a tax attorney. They will be able to provide personalized guidance, even in situations that may be difficult to navigate. For example, if you have recently won the lottery and are unsure regarding how your lottery winnings will be taxed, a tax lawyer should be able to assist in the matter. 

7. Investments

Before making any substantial investments, you should always consult with a tax lawyer. Ensuring you make the correct investments with the right funds is essential in avoiding unnecessary tax implications. For instance, if you are interested in investing in real estate, your lawyer can advise you on your property taxes, capital gains taxes and more. Tax lawyers can also determine the best ways to invest your funds and optimize long-term growth while taking into account your tax liability. 

8. Representation in Tax Litigation

If you’re facing a tax court case or appeal, it is important to acquire expert representation that represents you and advocate on your behalf. Tax lawyers have extensive knowledge and experience in tax laws and regulations, which can be a major advantage in all kinds of tax litigation. They can also help you understand the relevant legal and procedural guidelines in your case, gather evidence and effectively argue your case in court.

9. Disputing Tax Errors

Everyone makes mistakes, including the IRS in some cases. If you believe that the IRS has made an error in assessing your taxes, it is critical to act quickly to protect your taxpayer rights. In these situations, it is highly recommended to seek the help of a tax attorney who can help you negotiate a resolution to the dispute with the IRS. Further, if you plan on suing the IRS or a state/local tax authority over a tax error, working with a tax lawyer is essential. Having a tax lawyer to represent you in all of your communications with the IRS can be extremely beneficial when disputing a tax bill. 

10. Business Conflicts 

Have you been arguing with your business partner over tax-related matters, such as the allocation of profits or losses? A tax attorney can help settle these disputes and give expert advice on the best way to maximize your profits as a company. Furthermore, tax attorneys can offer guidance and representation on tax matters involving your company's shareholders, directors or investors.

Seeking Legal Support

To summarize, tax matters can be incredibly complicated and overwhelming. Working with a professional tax attorney is your best bet at tackling even the most complex of tax issues. So, whether you are facing an outstanding tax debt or you are interested in starting your own business, our tax lawyers are here to provide personalized support. Find a top-tier tax lawyer in your area with Attorney At Law.

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