Taxpayers may usually manage their personal income taxes on their own, but there are situations when a tax attorney can be a valuable resource or a necessary partner.
Taxpayers make mistakes from time to time and find it difficult to correct them on their own. By disregarding the error, they sometimes make it worse. Others rely on a CPA or tax preparer to get them out of trouble, which is not a good option when dealing with the IRS or the FTB in a matter that may end up in court. Let’s look at some of the distinctions between the IRS and the FTB, as well as why you might need a tax lawyer and when you should get one.
Two Important Reasons to Hire a Tax Lawyer
The attorney-client confidentiality that comes with working with a tax attorney rather than a CPA is one of the most beneficial aspects of the partnership. In court proceedings, your tax attorney cannot be called to testify against you. That exemption cannot be granted by a CPA or a tax preparer. Another reason to employ a tax lawyer is to get the greatest advice on how to make the best decisions. A tax attorney has the experience to reach a tax settlement, which is not something that the average individual performs on a daily basis. Only an experienced tax attorney is familiar with all of the programs available to you and can advise you on which one is best for you. The tax system and laws are complicated, and they change frequently. If you’re dealing with the IRS or the FTB, bad advice might cost you a lot of money.
When Should You Hire an Attorney
Self-employment and business taxes add levels of complexity to the traditional income tax process. A tax attorney can help you through the IRS’s complicated forms and publications; there are about 2000 different IRS forms and publications to go through, many of which are not written in plain English. Many taxpayers get into difficulty because businesses and individuals are taxed differently. A tax planning and preparation attorney can also assist you in reducing your future tax liability.
A tax attorney can help you stay on top of things and protect any enterprises you’re running. If there are any potential criminal issues that come up throughout the investigation, you should definitely hire a lawyer.