Accountants software is what most people depend on when it comes to the management of their taxes. Yet, when it comes to certain red flags and situations, a personal tax attorney is not only appropriate to have, but also needed. So here is how the most important signs can be broken down and given in the form of questions and answers, so you can easily decide when legal knowledge is necessary.
Have You Received a Notice of Audit or an IRS Investigation?
Of course–that is one of the most important signs.
If you got a notice from the IRS that you are going to be audited, or even worse, you are going to be investigated because it is a criminal matter, it is time to call a personal tax attorney. Lawyers for tax returns, unlike CPAs, are legally prepared to deal with the IRS on your behalf and know how to execute the process without self-incrimination.
Are You Behind on Filing Your Tax Returns?
Being late to file taxes may result in harsh penalties.
You can be subjected to criminal charges or civil penalties in case you have not filed returns for many years or even one year, and to received considerable income. An attorney specializing in tax will assist you in filing retroactively and on your behalf, negotiate reduced penalties, or even amnesty.
Do You Owe a Large Amount in Back Taxes or Face Wage Garnishment?
Yes, a legal strategy is needed in the case of debt with the IRS.
In such a case of IRS collections or with a lien or withholding on wages, the tax attorney can negotiate settlement terms in the form of an Offer in Compromise or by an Installment Agreement. They are also able to safeguard your property and represent you.
Are You Involved in a Complex Business or Real Estate Transaction?
Indeed, complicated deals may call for some legal foresight.
There exist serious tax consequences of high-value property sales, equity divisions, or business amalgamations. A tax attorney will make sure that you never pay too much in taxes, take the important deductions, and ensure that you comply with all federal and state tax regulations.
Has the IRS Frozen Your Bank Accounts or Filed a Lien?
Legal advice at this point, for instance, is pretty important.
If your assets are frozen down or a federal tax lien is placed upon your property, only a tax attorney will be able to contest these actions in tax court or negotiate for their removal.
Are You Being Accused of Tax Fraud or Evasion?
Yes — immediately consult an attorney.
When there is any hint of guilt or charge of making false statements on returns, underreporting income, or misuse of offshore accounts, that is when the services of a tax attorney are needed. They are cases that may result in criminal cases and that should be defended by highly qualified lawyers.
Do You Have Foreign Assets or Offshore Accounts?
Yes — special compliance is required.
FATCA and FBAR reporting is daunting. A tax attorney will secure your full compliance as well as assist you in going through voluntary disclosure programs to avoid fines or even criminal charges.
