IRS Tax Problems – top three reasons to use an IRS Tax lawyer.
If you are facing IRS tax problems, the best thing you can do is to hire a tax attorney. Tax problems cause serious troubles and ignoring the problem only makes the situation worse.
Tax law is also extremely complicated. Tax attorneys are licensed professionals that know and understand the IRS tax code and can prevent IRS abuse and illegal practices. It would be a mistake to hire a CPA or tax relief company to represent you in any type of IRS dispute.
Hiring an IRS tax attorney is the best way to obtain the best tax relief results for the following top three reasons:
- Attorney Client Privilege
Upon hiring an attorney, the attorney client privilege is created between an attorney and client. An attorney cannot testify against their client in court unlike a CPA or non-attorney. CPA’s and non-attorneys (tax resolution specialist) can be compelled to testify against you in court. What this means is that a client can provide full disclosure about almost anything and the attorney must keep these disclosures secret. This is especially important in cases where the government has opened a criminal case against you or may do so in the future.
- Tax Resolution Negotiation
Attorneys are masters of negotiation and of the law. Why would you hire anyone else to do the job of what a tax attorney was trained specifically to do in law school and beyond? A Tax attorney can help you negotiate the following to resolve your potential and existing IRS tax debt:
- IRS Offer in Compromise (“OIC”) or IRS Settlement: An IRS tax lawyer can help you negotiate an IRS settlement. If going it alone, most taxpayers do not submit a proper OIC resulting in a rejection and then being stuck paying the IRS back the full debt amount with interest and penalties.
An IRS tax attorney has specific skill and ability to negotiate the lowest possible settlement. They analyze your financials, strategically position you and your household and select an appropriate settlement amount that will likely be considered favorably by the IRS. After the application is then submitted, a knowledgeable tax attorney will then negotiate with the IRS on your behalf obtaining optimal results.
- IRS Installment Agreement: If you cannot pay off your tax debt or do not qualify for a settlement, an installment agreement is an alternative. The IRS has four different types of installment agreements: guaranteed, streamlined, partial payment, and non-streamlined. Depending on the time allowed to pay your debt off in a payment plan, a tax attorney can determine the amount that you can pay and negotiate that amount with the IRS. If you do not have a great negotiator by your side, you may end up agreeing to an amount you simply can’t afford. This will only cause the IRS to come after you to collect the tax debt in full.
- Stop an IRS garnishment, levy and/or tax lien. Dealing with IRS collections takes a highly trained professional with a specific skill set. Tax attorneys have years of experience at stopping wage garnishments, bank levies, and releasing tax liens. They know how to position you properly to reflect financial hardship in order to reduce your potential IRS payment plan or to place you in a currently not collectible status (showing no ability to pay).
- Tax Audits: An IRS tax attorney has the knowledge and confidence to effectively represent you in a tax audit to make sure that the assessment made by the revenue agent is not more than what you need to pay. There is much negotiation in a tax audit. Many occasions in an audit, an attorney must negotiate certain deductions taken. This requires detailed legal analysis under the tax code as to why you or your business is qualified to take such a deduction. This can mean saving you thousands of dollars.
Do not make the mistake of going to an audit by yourself. This can be catastrophic causing the IRS to disallow several deductions, attributing income to you and allowing the IRS to obtain more information from you than you are required to give by law. Also, the IRS commonly expands your audit to multiple years, making you responsible for further disallowed deductions and more taxes owed. That’s why you should do it right the first time around and hire a tax attorney.
- Removal of IRS Penalties: Obtaining a penalty abatement generally requires some argument…and tax attorneys are excellent persuasive writers. To get penalties removed, the IRS requires “reasonable cause” of why abatement should be warranted. A tax attorney must do the appropriate research and apply the legal research to the facts of your case. Once complete, a tax attorney must draft a proper memo that will convey to the IRS why you deserve to have your penalties abated.
Additionally, what is great about hiring a tax attorney to negotiate with the IRS is that they generally have some sort of rapport or relationship with local IRS agents and revenue officers. This can be important to a positive resolution to your case. This creates a business relationship that allows for the best possible tax settlement and audit outcome for clients.
- Tax Court Litigation
Only a tax lawyer can represent you in tax court if you don’t want to represent yourself. Tax court is appropriate if you receive rejections from the IRS with regard to all tax resolution options at the administrative level. Your attorney will cross-examine IRS officers or agents and find any wrongdoing. They can also negotiate with opposing IRS counsel to lower your tax liability. However, it is best to negotiate at the administrative level as attorney’s fees for tax court can be pretty hefty. Get a good tax attorney at the very beginning so you can avoid going to tax court.
Taxpayers needing assistance in dealing with IRS tax problems should seek the advice of a knowledgeable tax attorney. The San Diego Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS. Please call for a no-cost tax attorney consultation for tax resolution at (619) 639-3336. We look forward to helping you.
This blog post is not intended as legal advice and should be considered general information only.
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