Everyday people all across America are hiring tax attorneys to help them with their business and personal tax issues. There are a number of reasons for this turn toward specialization, but it is worth investigating some of the top reasons for hiring a tax attorney.
#1: Specialized Knowledge of the Tax Rules
The rules surrounding taxes are complicated and hard to find. Tens of thousands of pages exist that hold all the current and former tax rules. 26 U.S.C. contains the Internal Revenue Code, which spans volumes. The accompanying regulations are arguably much worse and are contained in roughly a dozen volumes. This of course does not even consider the Proposed Regulations, the Revenue Rulings, the Revenue Procedures, the Private Letter Rulings, the Internal Revenue Manual, not to mention the thousands of Tax Court cases and District Court Cases.
Simply knowing where to look to find an answer to a tax question is often complicated enough without ever getting to the analysis.
A qualified tax attorney knows where to find the answers to your questions and has experience doing so.
#2: Understanding Audits and Tax Controversy
Tax Attorneys are experts in understanding and resolving audits. The procedures and options available to taxpayers are often difficult to understand. Knowing what to do, whom to talk to, and what you can negotiate are invaluable skills when working with the IRS.
Depending on where you are in a tax controversy determines what your options are. If you need help talking to the Examiner, IRS Appeals, or filing in Tax Court, a tax attorney can handle all these issues for you.
#3: Knowing How to Manage Complex Situations
Seldom is a tax issue going to be simple or better yet “stress free”. A qualified tax attorney can help you manage complex tax issues. Whatever novel or heartbreaking experience you are going through you can rest assured that a tax attorney has seen it before.
Often times a lot of money is at issue, and this affects your livelihood. Dealing with the IRS is an emotional process, and it often hits close to home. A tax attorney can be the beacon of hope upon which you rely when navigating the uncertain and dangerous waters of tax controversy.
#4: Professionalism and Confidentiality
Tax attorneys are held to high ethical standards as evidenced by each state’s code of professional conduct. Additionally, when you speak to a tax attorney you have the same client confidentiality assurance that you do with any other attorney. Being able to speak your mind and express yourself with your attorney is crucial to resolving your case in the best way possible for you.
#5: Mitigating Risk
A tax attorney can help you negotiate the penalties and interest fees with the IRS. A good tax attorney can also help you strategize to avoid future pitfalls.
Not planning properly or simply making mistakes can be a costly business when dealing with the IRS. A tax attorney can help you manage this tricky area while minimizing your risks.
#6: Representation in Court
It is entirely possible that a tax issue can land you in court, and that is not a place you want to be alone. A good tax attorney will be with you every step of the way.
No other profession can stay with you from the start of an audit to the conclusion of a court case. Tax attorneys know the process and are very familiar with the rules both within IRS and the court system, and they can help you understand your options at every point in the process.
#7: Estate Planning
The tax rules associated with leaving property to and gifting your heirs can at times be overly complicated. Also, it can be hard to determine what is the best plan for you. Do you need a will? Do you need a trust? Do you need a combination of the two?
How do I provide for my favorite charity or a child who refuses to grow up and take responsibility? Deciding how to allocate your wealth and possessions that you have spent a lifetime accumulating should not be a stressful process. Additionally, the last thing you want to do is put stress on your loved ones. Your estate should be in good order at the time of your passing, and a tax attorney can help you plan for this inevitability.
#8: Friend in Need
Although a tax attorney is not your friend per se since you are paying them, they can make your life much easier than it would be without them. Taxes are stressful and the idea of paying more, or God forbid paying penalties and interest can turn into a whole new level of stress.
Why face it alone when you can have a qualified tax attorney at your side whose mission is to guide you successfully and wholly to a conclusion that is best for you.