Filing your taxes and managing the documents can be daunting.
To avoid legal issues, many taxpayers hire a tax attorney. These professionals can take the burden off your shoulders by handling every task from doing your long-term tax planning to representing you during an audit.
Thus, instead of struggling while doing the taxes, it is advisable to seek assistance from these legal professionals who specialize in the complexity of tax laws.
If you’re still not convinced, we will discuss six situations in which a tax professional can have your back.
- You’re Starting A New Business
Starting a new business is exciting, right? But wait, do you know all the rules and regulations associated with taxation?
If yes, then congrats on being a genius!
But if not, you must start looking out for a tax attorney. Everything you do once you start a business, like paying your employees, business transactions or making investments etc., all are to be self-assessed for taxation.
Such a complex process of structuring a business and staying up-to-date with the tax laws can become easier with the help of an attorney. A tax attorney can give you expertise on where to invest money, how to deal with loss or structure profit sharing in your firm.
- You Need Someone To Represent You During Criminal Investigation
If you face a criminal investigation, it is very hard to tackle the proceedings on your own. You will require a legal representative to help you.
A tax attorney can protect you from paying hefty fines and serving jail time for tax fraud, evasion or other related offenses.
However, you may be confused as to which professional to hire – CPA vs. a Tax Attorney. CPAs are more focused on bookkeeping and filing your tax return, unlike tax attorneys who can advocate for you in court proceedings.
- You Are Being Audited By IRS
Even after you have done nothing wrong, receiving a letter of an IRS audit can give you anxiety. All the confusion can make the whole experience intimidating and overwhelming.
To avoid stress and to be prepared for an audit, you must consider hiring an attorney. If you have been selected for an audit, you have a right to hire a legal professional to represent your case.
A tax attorney with immense expertise in the field can help you go through the audit process seamlessly.
They can do everything starting from gathering and organizing relevant documents to communicating with the IRS to ensure that the outcome is in your favor and your rights are protected.
- You Need Help With Estate Planning
Estate planning is not merely about singing a will. You need to follow numerous processes to ensure your assets are protected or distributed among your beneficiaries just how you want.
Some complications can make estate planning even harder. For instance, you might be the co-owner of the estate, which means equal funds will be transferred to the estate or you have taken loans that need to be repaid before your funds go into your family members’ accounts.
To avoid all such issues and simplify the process, it is necessary to hire a tax attorney. Tax professionals can help you with everything, from doing the paperwork to creating charitable trusts to bringing your estate in order.
- You’re Behind Your Tax Returns
There could be multiple reasons why a person can fall behind on their tax obligations. For instance, health issues or financial hardships.
However, if you’re not adhering to the filing dates, the IRS won’t sympathize with your problems but take legal action against you.
To avoid penalties and legal complications, you must consider hiring a tax attorney who can assist you in filing tax returns and communicating with the authorities for settlement.
Conclusion
All these situations add up to only one conclusion: hiring a tax attorney is a necessity.
From being your guide while you start a new business to being your advocate if you’re being investigated for tax fraud, these experts can mold themselves into different roles to ensure you don’t face difficulties both mentally and financially.
