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IRS Tax Lawyers: Understanding how a Tax Relief Lawyer can assist with Taxes
If you are looking to hire a tax professional with the maximum level of knowledge and experience, hire a tax lawyer. Tax lawyers are able to assist with the more legal, technical, and advanced tax problems and related issues. Tax lawyers are tremendously helpful when different tax situations, that numerous other tax professionals are not equipped to handle, come up and assistance is required.
Generally speaking, tax lawyers are not well-versed in the art of accounting and can therefore, not assist you with filing taxes. They do possess some knowledge of tax filing, however, they do not possess the knowledge to assist you with making the right tax deductions, or assist with business or personal tax planning.
If a tax problem does exist, it is highly suggested to consult the opinion of a tax relief lawyer. They are advantageous resources to have in your corner, especially when you are looking for a professional to assist in all IRS negotiations and dealings. Through IRS power of attorney, a tax lawyer is able to represent you in all IRS meetings and correspondences and even, in a tax court. Provided below are a number of benefits that are associated with utilizing the services of a tax lawyer to assist you with any tax problem, as well as represent you at the IRS.
Benefits of tax lawyers
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Privileged communications :
All information that you disclose to a tax lawyer or someone on their staff remains confidential. They cannot be forced to release any information you have given to them. Tax lawyers only disclose what information they believe will be vital in creating a solution for your tax problem.
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Negotiating skills :
Tax lawyers are well equipped to handle all IRS negotiations directly. They are taught the skills of negotiation to assist their clients in getting the best possible outcome. There is always room for negotiation when it is time to deal with the IRS. Two individuals with the same tax dilemma and the current financial situation will have significantly dissimilar outcomes based on the angle that is used when dealing with the IRS. Selecting a competent tax lawyer guarantees that you will receive a manageable solution that was completely negotiated by the tax lawyer on your behalf.
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Not emotionally involved with the tax debt/tax problem :
Tax lawyers possess a good understanding of the hardball tactics the IRS uses to get what it wants. They are aware of the harshness involved in IRS requests and tax lawyers know what directions the IRS will most likely move in. Because tax lawyers are not emotionally involved in the case, they are more apt at handling in the tax problem in a cool and more professional demeanor than you would if you were representing yourself on your own.
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Highly educated :
Because they are lawyers, they are required to receive their license through the state bar association. Tax lawyers are mandated to continue their legal education as they continue to practice tax law. This is so because they will remain wise on all new rules and regulations within their profession. They are also, by law, mandated to be truthful in all legal communications.
When should you seek the assistance of a tax lawyer?
When dealing with various IRS topics and problems, a tax lawyer is very beneficial. Provided below are a few of the most frequent problems and topics that, if arise, you should think about utilizing a tax lawyer.
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Owe taxes and are unable to pay :
Often if an individual is not able to pay their back tax debt to the IRS in one full payment, the IRS will propose that the individual files for an installment agreement, thereby enabling them to make smaller periods over a certain period of time until all the back taxes have been paid in full. This sounds like a good plan, however, for some individuals, it is not that simple. For some individuals, they are not able to afford to make these monthly payments. Either they do not get enough money in general to pay them off, or if they do they will not be able to afford other necessary expenses, such as food and housing. The IRS does have other options available in these situations, but they must be negotiated thoroughly. Tax lawyers are aware of the other IRS tax relief plans available and how they work. They also know the IRS code. They have extreme knowledge of other financial solutions that may be utilized. With their combined knowledge in the IRS and financial solutions, they will be better equipped to locate a solution that fits your unique tax and financial standing.
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Unfiled tax returns :
If you have several years of unfiled tax returns, but you do not owe the IRS any money, it is not a big deal. However, it is a completely different story if you have unfiled tax returns and you do owe the IRS money. Aside from steep penalties, they will tack onto your current tax debt. The IRS will take severe collection actions against you if you have made no effort to file or pay back taxes. In this situation, it is advantageous to consult a tax lawyer. Tax lawyers have immense knowledge that can be used to limit the actions of the IRS, reduce the total amount of penalties incurred by the IRS, and even reduce the total amount of money in back taxes you owe.
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Going to the tax court :
Unlike other tax professionals, a tax lawyer is able to represent you in tax court. It is a smart idea to employ a tax lawyer in this case because you will benefit from their unique tax law training, superior negotiation skills, and the client-tax lawyer privilege.
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Handling tax fraud :
Tax fraud cases usually get messy. Not only is tax fraud against the law, but the IRS will take extremely harsh actions against those who have committed tax fraud. A tax lawyer is a top tax professional to have in your corner if you are accused of committing tax fraud. Because communication between you and the tax lawyer is privileged and it will guarantee that the information revealed to the IRS is information required to handle your case and put tax fraud behind you.
Prior to hiring a professional tax lawyer, here are some questions you can ask.
Because tax lawyers come from a number of different backgrounds, it is necessary to locate a tax lawyer that has the appropriate skills and knowledge to offer you the assistance you need in your tax problem. Most tax lawyers will also ask you questions to see if your request fits their services. Be skeptical if a tax lawyer chooses not to ask you any questions and immediately takes you on as a client. Tax lawyers are not “one size fits all,” as some deal only with specific tax issues, such as tax fraud. Provided below are a few questions you should ask before selecting a tax attorney to represent you:
- What areas of tax law do you concentrate on?
- What is the fee for using your services?
- Are you going to charge me a retainer fee? (if they say “yes,” be doubtful of their services, a professional tax attorney believes that their services will validate their worth and you should not be asked to pay upfront any fee)
- Will you be able to assist me with my current financial/tax situation? If you are not able to, is it possible to recommend me another tax lawyer who is able to assist me?
- How long, on average, do you believe it will take to finish my case?
- Can you please tell me your overall rate of success in resolving different tax cases? (This is a good question to ask, particularly if they believe they are able to provide you with an offer in compromise or another form of tax negotiation)
- Have you ever dealt with cases that were similar to mine? What were the outcomes of these cases?
You should start the procedure of locating a professional tax lawyer that is able to handle your situation once you determine that a tax lawyer is needed. It is essential to be cautious of tax lawyers who are just out to obtain your business and will, therefore, say what they think you are looking to hear. The skills of a certain tax lawyer will not fit the needs of everyone.
Guarantee that the tax lawyer is raising the right questions before hiring them depending on what your case is about. Remember, a tax lawyer wants to handle clients that will not only fit within the defined area of their skill set, but clients they believe they can assist.
If you are thinking about speaking to a firm that has on their staff tax lawyers, you can ask for a free tax analysis. Our firm has partnered with many trusted tax professionals. They will provide you with a large variety of different tax solutions that will assist you in solving your tax problems.