When it comes to government agencies that you absolutely do not want to deal with, the Internal Revenue Service (IRS) ranks among the most feared. There are numerous reasons why you don't want to deal with the IRS, but among the most common reasons to avoid their wrath is that of a tax audit. However, there are various other reasons that you should not incur the pain of having to deal with the IRS. One of the best things you can do in order to protect yourself from that which the IRS can do to you is hire the services of an attorney well versed in tax related laws. Throughout the course of this brief article, you will learn of 4 reasons you might need a tax attorney.
Exemption From Testifying
In order to earn the attorney-client privilege you will, of course, need an attorney. Having attorney-client privilege can be incredibly beneficial for the proceedings that take place for a tax related case, such as an audit. If you happen to deal with a CPA, or someone else that is well versed in taking care of one's taxes or tax related issues, they can be forced to testify against you in a court of law. However, due to attorney-client privilege, there are no cases where an attorney can be called on to testify against you. Therefore, if you use an attorney to help you with tax related issue, this is a problem you will not have to deal with if you are brought before a court of law due to tax related issues.
Make Better Decisions Regarding Settlements
When it comes to issues of settlements, CPAs might be able to help you to some extent. However, it is only tax attorneys that have the experience and wherewithal to help you make, without a doubt, the best and most correct decisions. Since tax laws and codes are a very intimidating beast, it is recommended that you consult with an attorney regarding this issue, since by the nature of their job, they must keep up to date on the various changes that can occur on a year to year basis. A tax attorney can also better help you with settlement related issues because of the fact that he or she will know how to reduce the amount of liability that you owe and can help during negotiations to lower this amount.
In the issue of an audit due to your most recent tax return or tax returns of years past, it is always recommended that you work with a tax attorney. A tax relief attorney is quite well versed with dealing with the IRS and as such, he or she will know how to sufficiently talk matters out with them and may even be familiar with IRS agents in such a way that he or she has built a friendly relationship with them, which is beneficial when dealing with an agency that you need to negotiate with. Tax attorneys can also represent you, and therefore speak for you, during an audit. This ensures that you won't have the opportunity to misspeak or misunderstand certain things during the audit.
Offer In Compromise
A tax attorney will help you decide when you should negotiate an Offer In Compromise (OIC). This is a phenomenon wherein you are able to settle for markedly less than the grand total that you owe the IRS. There are several conditions that you must meet in order to make an OIC a possibility and, as such, it is recommended that you discuss the matter with a licensed tax attorney.
Dealing with the IRS can be a harrowing experience and it is recommended that you don't go it alone. Hire a professional tax attorney to help you out with this matter as he or she has the experience and wherewithal to make this a far less of a painful experience than it would be to fly solo.