The IRS is knocking at your door. They want your home because you haven’t paid your income taxes. Before you walk away and leave it all behind, consider how a tax lawyer can assist you with Tax relief.
Who is a Tax Lawyer & How can they help?
Tax lawyers do not practice tax litigation exclusively. In fact, many tax lawyers handle a variety of tax-related duties for individuals and corporations including:
- Navigating complex tax codes and laws
- Structuring and documenting business entities
- Overseeing business tax planning to legally minimize tax burdens
- Advising clients on estate, tax, and financial planning
- Handling disputes before the IRS
Another thing that a tax lawyer can do is relieve the stress you may feel by dealing with the IRS or other tax agency on your behalf.
A tax litigation attorney can represent you in state or federal Tax Court, or in other courts including the District Court, the Court of Federal Claims, or even the Bankruptcy Court. Additionally, a tax attorney may represent tax professionals who are the subject of IRS enforcement proceedings such as injunction actions or violations.
Do you need a Tax lawyer to help with Tax relief?
Knowing when it is time to call on the services of a tax lawyer can sometimes be difficult. You may think they are too expensive or that you can ignore your tax situation and it will go away.
However, having someone there to help, an expert in their field, can go a long way in making a difficult process easier to handle.
A tax lawyer, sometimes called a tax litigation lawyer or tax controversy lawyer, can help you with:
- Tax audits. If a taxing agency questions whether you paid the right amount of taxes, they might request an audit. Audits come in three forms:
- Correspondence audit. For less complicated audits where it can be done by mail.
- Office audit. You’ll need to take your receipts and other documents related to specific questions about your return to a local IRS office.
- Field audit. An IRS agent comes to your home or place of business.
- Tax appeals. If need assistance understanding your appeal rights, what you can appeal, and what to expect during the appeal process, a tax lawyer can provide guidance.
- Tax collection. Individuals and businesses are responsible for paying a variety of local, state, and federal taxes including income, sales, payroll, and excise (such as alcohol, fuel, and luxury) tax. Tax lawyers can help you understand your responsibilities and walk you through the collection process, if need be.
- Tax penalties. The IRS imposed tax penalties include failure to file, failure to pay, negligence, disregard, and many others. A tax lawyer can help you navigate the many ways the IRS (and other taxing agencies) penalize taxpayers.
Related: Learn more about Tax Liens here (What they are and how can you get them removed).
How else can Tax lawyers help you?
While many people innocently make errors when filing their taxes, if the IRS accuses you of a more serious crime such as tax evasion, failure to collect employment taxes, or filing false documents, a tax lawyer can help.
Penalties for criminal tax fraud can include up to five years in jail, plus fines and the cost of prosecution for each tax crime. But there’s more. Afterwards, the IRS Examination Division will assess taxes along with a civil tax fraud penalty.
Keep in mind that the IRS understands that sometimes people make mistakes. Mere carelessness is not tax fraud. Fraud includes overt acts such as:
- Intentional understatement of income
- Failure to file tax returns
- Concealment of income or assets
- Engaging in and concealing illegal activities
- Failure to make estimated tax payments
If you need assistance with criminal tax fraud or tax evasion, you need a tax lawyer. A tax lawyer understands the process, how a civil tax case works within the system, and the most important factors to consider. There is no substitute for a knowledgeable tax lawyer when it comes to tax debt issues.