You might think that the only reason to contact a tax lawyer is to help prepare your taxes. And although they do that, they also do a lot more. Naturally, they can help you minimize the chance of getting audited (which is a huge benefit), but they can also help you prepare contracts for things like business partnerships and real estate transactions. Since they know tax law inside and out, they can probably help you reduce your tax bill by much more than their preparation fee. In addition, they can help you organize your finances to the best effect.
1) Tax Lawyers Can Help with IRS Audits and Disputes
It is not a good idea to deal with an audit without representation. An experienced Tax Lawer can stand between you and the IRS, giving you time and resources to develop the proper response.
2) Tax Lawyers Can Help Determine the Impact of Filing Bankruptcy
If you are considering filing for bankruptcy, you need to understand all the implications of this move. A tax lawyer can help you know if it is the appropriate financial move.
3) Tax Lawyers Can Help Quickly Settle Outstanding Debt
When it comes to settling debt with the IRS, you should always work as quickly as possible. Ignoring that type of debt could result in a wide variety of problems that impact you for years to come. The lawyer will be able to negotiate on your behalf and come up with a payment schedule that is manageable and fair.
4) Tax Lawyers Can Help Protect Future Wages
If you don’t negotiate with the IRS and create a payment plan right away, then the IRS has the option of seizing future wages. They typically garnish wages based on the total amount that the individual is bringing in, and that means a huge percentage of your income might be at risk. By settling quickly, you won’t have to worry about losing large portions of your salary in the coming months or years.
5) Tax Lawyers Can Help Protect Your Credit Score
It is an unfortunate fact that the IRS can wreak havoc on your credit score if you have unsettled debt. While they typically won’t report the debt to a credit bureau, they do have the option of filing a Notice of Federal Tax Lien. Once that lien has been filed, it will become a matter of public record and show up on most credit reports.
6) Injured / Innocent Spouse Relief
If you file a joint tax return, you are equally liable for any taxes due. If you then become divorced or separated, this can come back to bite you. But there are some things you can do to mitigate your liability with the IRS, and a tax lawyer can help you get that relief using the injured spouse or innocent spouse clauses.
7) Tax Lawyers Can Help Avoid Future Tax Issues
After your current debts are settled, or a payment structure has been established, your tax lawyer can then help you come up with a strategy for avoiding future problems with the IRS. While there are many effective tax relief strategies, avoiding those problems altogether is a much better option. Your attorney can look over your finances and give suggestions on what can be done in the future to ensure that your taxes are filed properly, and your debts are settled quickly.
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