Part of being a law-abiding citizen is to fulfill our tax obligations according to the current tax laws and regulations. When one fails to do so, tax problems will arise. The consequences of tax problems vary and depend on the severity of the issue.
Seeking assistance from an expert, such as a tax attorney, can help taxpayers understand current tax laws, communicate with the authorities, and provide the best strategies to deal with the problems and prevent future tax issues.
Read on to learn and understand more about tax issues and when to hire a tax attorney.
Common Tax Problems
Unpaid Taxes
Failing to pay taxes by the deadline is one of the most common tax problems. When you miss the deadline for paying your taxes, tax authorities will incur penalties and interest.
For example, a Failure to Pay penalty will be added to your overall debt as long as your taxes remain unpaid. Taxpayers will also receive a notice from the IRS informing them about the issue. It’s important to note that ignoring the issue and IRS notices will lead to a more severe problem.
Tax Audits
Tax audits are enforced as part of the IRS’s efforts to ensure taxpayers’ compliance with tax laws and regulations. While some audits are done randomly, some are triggered because of legitimate concerns.
These concerns can trigger an audit: those with high-income or high-risk investments who failed to file taxes or those filers for whom discrepancies were found.
Ensure you complete your tax returns accurately, file and pay your taxes on time, and you shouldn’t worry about getting in trouble with the authorities.
Tax Liens and Levies
Liens and levies are serious tax problems that need immediate action. A tax lien is a legal document notifying the public of the Federal Government’s, Department of Treasury, or IRS’s legal claim of one’s property or asset. In other words, the state has the right under the law to seize your assets to secure outstanding debts.
A levy, on the other hand, is the legal action to seize your property to satisfy the debt. Tax liens and levies typically occur when taxpayers continue to owe after being given several notices and opportunities to settle the debt.
Tax Fraud Allegations
Tax fraud occurs when an individual or business intentionally carries out false practices, such as inaccurately filing information on tax returns to minimize or avoid certain tax obligations. This includes things like false deductions, not reporting income, and using false social security numbers. When tax fraud is proven, the implications are severe.
How a Tax Attorney Can Help
Expertise in Tax Law
A tax attorney is the best help a taxpayer can get regarding tax laws. Becoming a tax attorney is rigorous, but they are the most well-versed in tax laws and understand the intricacies that come with them, including tax problems and how to deal with them effectively.
Moreover, attorneys must stay up to date with any law changes and, therefore, know about recent details pertaining to tax law changes.
Representation and Negotiation
Knowing when to hire a tax attorney is crucial when representation and negotiation with the authorities are needed. Having an expert by your side who has the knowledge and knows the language of tax laws can be very helpful in achieving the desired outcome.
Without the proper representation and skills in negotiating with the state or the IRS, mistakes and inaccuracies become more likely, making getting the ideal outcome for your case more challenging. Ensure you have the best team by your side when experiencing complex tax issues.
Developing Tax Strategies
With the complexities of tax laws, developing effective tax strategies becomes the same complex matter. Different tax problems require different approaches, and tax attorneys understand this very well.
That’s why Greenberg Law Group P.A. offers personalized services where tax strategies are created according to your specific tax issues. By looking at your case, we will look into all the angles in your situation, devise a plan, and optimize accordingly to ensure compliance with current tax regulations and prevent future issues.
We can also help with other tax matters, such as tax planning. We will analyze your financial standing and create the best course of action to achieve tax efficiency. Moreover, we’ll help you look for any deductions and credits you may be eligible for, potentially reducing your tax burden.
When To Hire a Tax Attorney
1. Before You Respond to an IRS Notice
Part of the reason taxpayers further complicate their current tax issues is they ignore IRS notices or don’t know how to respond to letters correctly.
It’s crucial to understand that responding to the authorities should be prompt, accurate, and correct. This is where a tax attorney comes in handy.
Tax attorneys understand the tax issues, the implications, and, most importantly, how to deal with them most effectively. The experts can help explain the problem, the rights, and the options you have and guide you through the response.
2. During an IRS Audit
An IRS audit entails many crucial components that are often complex and, therefore, require careful attention. This requires you to provide information and documents related to the investigation, and could be an indicator that this is when to hire a tax attorney.
As a taxpayer facing an IRS audit, hiring someone with expertise in tax laws and an understanding of how to manage audit proceedings is crucial. With a professional tax attorney representing you, you can prevent the issue from escalating and help stop the problem completely.
3. When Facing Tax Liens or Levies
As liens and levies are serious tax issues, effective and immediate response are paramount. Tax attorneys can effectively negotiate with the authorities and work to remove these actions and minimize their impact on your finances. Tax attorneys can help guide individuals or businesses in resolving the problem. For example, negotiating an Installment Agreement or Offer in Compromise.
4. If You’re Accused of Tax Fraud
Tax fraud is an issue that you want to avoid at all costs. If you are accused of tax fraud, this is when to hire a tax attorney. As experts in tax law, they can help you explore potential defenses, challenge evidence, argue your position, and negotiate a settlement to minimize consequences, such as reducing penalties or charges or even dismissing the case entirely.
End Note
Tax problems are some of the events that we may face as taxpayers in the U.S. Problems can range from minor to major, and the consequences of tax problems depend on how you respond to the issue. That’s why is is important to know when to hire a tax attorney.
If you’re facing any of the problems we have discussed in this article, contact our team at Greenberg Law Group P.A. We will help you understand the gravity of the situation and guide and advise you on the best course of action to deal with the issue and prevent future tax problems.
