7 Instances When You Must Hire A Tax Attorney

instances need to hire tax attorney taxes lawyer irs

Getting behind on your taxes is never pleasant, but it is incredibly common. More than 15 million taxpayers owe the IRS back taxes. 

When this happens, taxpayers face scrutiny from the IRS, audits, fines, and sometimes even criminal charges from a judge. 

A tax lawyer can help represent your case and interact with the Internal Revenue Service (IRS) for you. However, understanding when it is time to get legal help can be more complicated than you might have thought. 

Here are 7 major instances where getting legal help for your taxes is in your best financial interest. 

7 Times You Need To Hire A Tax Lawyer

1. You Are Getting Audited By The IRS

No matter how many times you have filed taxes in the past, it never gets easier. Even the simplest return can be incredibly complicated. 

This leads hundreds of people to make mistakes on their returns every year. While some of those mistakes are minor, others can be large enough that the IRS audits your finances. 

Dealing with an IRS audit is something no one should try to do on their own. 

If you have received notice that the IRS is auditing your accounts, hire a tax attorney as soon as possible. They will be able to communicate with the IRS on your behalf and will do everything they can to reduce any fines or penalties the IRS may assess. 

2. You Own Your A Company 

If your personal tax return seems complicated, just think how difficult it will be to file your business’s taxes!

For business owners, a tax attorney will be able to make sure you’re filing everything correctly and receive the deductions you qualify for. They’ll also be able to double-check your hiring paperwork so your payroll and employee tax documents get issued on-time and correctly. 

They won’t be able to help you file your returns. You’ll still need to hire an accountant and get them to help you claim deductions, fill out tax documents, and stay on top of quarterly payments. 

3. You Are In Major Debt 

Getting behind on your taxes isn’t something to feel ashamed of. It is, however, something you’ll want to get help dealing with. 

The IRS will pursue you for taxes that you owe. If you only owe a few hundred dollars, they’ll likely be flexible. If you owe a lot, you can expect the IRS to come knocking. 

Hiring tax relief attorneys can help you negotiate the amount that you owe the IRS and can represent your interests in court if needed. Experienced attorneys may be able to get the IRS to forgive a large portion of your debt. 

Keep in mind that all situations are unique and what your attorney may be able to do for you may not be what others have experienced. The best thing you can do is schedule a consultation. 

4. You Did Some Hiding Of Income In Past Years 

No one likes paying taxes. The more money you make, the more money you owe the IRS at tax time. 

It makes it tempting to lie about how much income you generate or to fail to report a good portion of your income. 

Unfortunately, the IRS has a way of finding out that you hid income in the past. If they do, you could face criminal charges and even be sent to a white collar federal prison like countless others for tax evasion. 

A tax lawyer will be able to represent your case and argue on your behalf. Keep in mind that they may not be able to get the tax evasion charges against you dropped completely. Every situation is unique though when it comes to tax evasion. 

5. You Are Self-Employed 

When you’re self-employed, there are all sorts of challenges you’ll face. Taxes are some of the biggest ones. 

A tax attorney will be able to make sure you’re on the right track and are submitting things correctly. Even better, they’ll be able to make sure you’ve formed your business in such a way that you’ll be able to enjoy tax savings every year. 

If you haven’t, they’ll be able to recommend a simple restructuring process that will let you take advantage of tax savings for years to come. 

6. You’ve Planned Your Own Estate 

Most people want to set aside money for their loved ones or set up funds to support their favorite causes when they pass away. While a clear will is always an absolute must, there’s more to leaving money to those you care about than you might think. 

You need to understand the tax risks associated with your accounts. You will also have to work to find a way to reduce the amount of taxes your loved ones will pay when they receive the money. 

Hiring a tax lawyer will help you figure out the best way to set up funds to reduce the amount of taxes your loved ones will owe. They’ll also be able to double-check the way your accounts are set up currently so you can maximize your contributions and save on your personal taxes. 

7. You Have Assets You Do Not Want Seized By The IRS

If you’re facing a tax levy, the IRS can seize assets to settle your debts. Without the help of an experienced income tax attorney, you may lose assets that you would rather the IRS not know about in the first place. 

When you hire an attorney, they will be able to review your assets and potentially find ways to keep them out of the IRS’s hands. 

They will also be able to review the ways you store those assets to find better and more tax-secure options. 

Don’t Wait Any Longer If You Need To Hire A Tax Attorney 

If you are getting audited or just have questions about the amount of money you owe the IRS this year, don’t wait. Schedule a consultation with a tax attorney immediately. 

The sooner you do, the sooner they will be able to review your legal tax case and find a positive solution. 

Just make sure that the attorney you work with has experience representing cases like yours. This way, you will get the best legal representation possible. 


Interested in finding more tips to help you save money on your taxes year after year? Check out our latest posts in the Frugal Finances section of the Frugal Finance Blog. Also visit the Legal section of our business site for additional insights on corporate law and compliance.

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