Tax Attorneys: Should You Hire One?

Going by the number of IRS jokes and one-liners online, it’s difficult to figure out whether the IRS is hated, feared, or both. One thing is clear, though: you do not want any problems with the IRS; you don’t want them snooping around or even calling you. 

But things don’t always go as planned. 

Millions of Americans find themselves with a tax debt every year. This can be from an oversight,  illness, financial setbacks, or even owing more than they thought they did. Unfortunately, sticking one’s head in the sand won’t make the IRS disappear. 

If anything, the letters and notices will keep coming, with penalties and interest escalating. This worsens an already dicey situation. 

What Do I Do About Tax problems?

You need to handle all tax-related problems whether or not the IRS comes knocking. In fact, if you become aware of an issue with your taxes and tackle it before the IRS notices it, it becomes a lot easier for you to resolve.  

If the IRS is already on your case, you have no option but to get on problem resolution immediately. Some people choose to do this on their own, and this is allowed. In some cases, however, you do more harm than good by attempting to resolve IRS-related problems by yourself.    

One thing about the U.S. tax code is that it’s long and complex, with thousands of pages to go through. Even if you can read the entire publication, the language might not be all that friendly. And even if it was, tax codes are amended faster than you can keep up. 

Talking to a reputable tax attorney should be a top consideration whenever you have problems with your taxes. The IRS is a formidable opponent. When they come at you, they will have a formidable team on their side, complete with attorneys that know the tax code backward. 

To build a strong case and defend yourself, having a knowledgeable, aggressive, experienced tax attorney is among the best decisions you can make for yourself. 

Who Are Tax Attorneys?

Tax attorneys are professionals trained in tax law, regulations, and tax policies at the municipal, state, and federal levels. This makes them well-versed in operations such as:

• Preparing tax returns for individuals and businesses
• Estate transfers
• Tax planning
• Property acquisition
• Business transactions
• The different structures of businesses
• Representing clients in disputes with tax authorities like the IRS

But isn’t this what CPAs Do?

CPAs are the number’s people. As such, they can help you prepare your returns and compute taxes. They can also help you with some IRS-related functions. However, if you have an issue that winds up in court, you need someone to represent and argue your case. 

However, not all cases end up in court, as the IRS will settle some out of court through negotiations. Again, tax attorneys are master negotiators, and you have better chances of getting a good deal when you have one in tow. 

Tax Problems a Tax Attorney Can Assist With

A tax attorney can review your information and accounts and tell you whether or not you are in trouble. If you are, they can then embark on a resolution. 

Here are some tax issues an attorney can assist with. 

Payment Plans

When you are unable, fail to, or don’t pay your taxes when they fall due, the unpaid balance becomes subject to interest and penalties. If you haven’t filed returns, there is also a penalty for this. 

Often, people are unable to offset the accrued amounts in one payment. Luckily, the IRS can agree to a payment plan. This is basically an agreement between you and the IRS to pay the outstanding amount within an extended timeframe. 

A tax attorney can help you set up timely payments, so you catch up with the back payments. You need to keep up with current taxes as you do this to avoid accruing arrears again. 

Offer In Compromise

Some taxpayers can settle their liability in one payment, while others require a payment plan. There is also another group of taxpayers who cannot manage either of these options. 

When a taxpayer can’t pay their liability, or when doing so subjects them to financial hardship, the IRS can offer a different option: offer in compromise. 

An offer in compromise allows you to settle a portion of your tax debt rather than the total amount owed. 

As you can imagine, there are strict eligibility criteria and different outcomes for people who apply and qualify and those that apply but don’t qualify.

A tax attorney will review your circumstances Vis a Vis IRS eligibility criteria and advise on the best way forward. They can also explore scenarios for when your application is denied and your options from that point. This will help you make the best decision and figure out a fallback plan should things not go as planned. 

Tax Audits

Being audited by the IRS is what nightmares are made of. First of all, the IRS can be highly intimidating, which makes for a stressful situation. Secondly, you sometimes aren’t sure whether you actually did something wrong or what will happen to you if you did. However, it doesn’t have to be this way. The first thing to note is that the IRS does not set out to get anyone. 

Audits are conducted to ensure taxpayers filed correctly and paid what they were supposed to pay. If something is out of order, the IRS will find it during the audit, and they can tell you where to go from there. 

When you are being audited, having someone to answer your questions can help you manage the anxiety better. This is something a tax attorney can help you with. 

They can also help ensure that your rights are not trampled on. As a taxpayer, you have the following rights during an audit:

• The right to privacy and confidentiality regarding your taxes
• The right to be treated professionally by the IRS
• The right to representation
• The right to know why you are being audited, what the IRS is using the information for, and the consequences of not providing it
• The right to appeal within the IRS or through the courts

Penalty Abatement

Too often, people with a tax liability have no idea there are ways to handle the issue in a manageable way. Instead, they get too overwhelmed, panic, and even ignore the problem altogether. Unfortunately, doing nothing doesn’t make the problem go away; it compounds it. 

How? Once your taxes are late, the IRS begins applying penalties. This remains so until resolution. 

One of the ways to resolve a tax debt is by applying for a penalty abatement. Here, you fight to get the penalties on your tax bill forgiven or lowered. 

Lowering or removing penalties reduces your tax bill, making it much easier to handle. Once this is out of the way, your attorney can also negotiate a payment plan for the remaining amount.

IRS Wage Garnishment and Levy Release

The IRS has numerous ways of getting its money. If you are late on payments, the IRS can garnish your paycheck or place a levy on your bank account (s). Life can get rather tough with only a fraction of your salary coming in and no access to your bank accounts. 

To ease the situation, an attorney can apply to the IRS to release the levy. However, you must prove economic hardship for the IRS to consider easing up on its action. 

A tax lawyer can look at your circumstances and prepare a water-tight case showing how the garnishment or levy has placed you in economic hardship. 

Currently Not Collectible

There are people with tax debts they can comfortably settle but refuse to do so, with some going as far as hiding assets from seizure. 

However, some taxpayers with back taxes simply cannot afford to pay. They also don’t own assets they can liquidate or that the IRS can seize. 

These people’s tax bills can be placed in Currently Not Collectible. 

Your tax attorney can prove that you genuinely can’t pay and have your account placed into Currently Not Collectible until you can make the payments. 

Sometimes, people get back on their feet and can pay after the statute of limitations has expired, meaning the IRS can’t collect. Your attorney would advise on this as well. 

Back Tax Returns

A tax attorney can help you file your current returns, but this role is best for an accountant. Case in point, it’s an uncomplicated, simple filing, and you are clear with the IRS.

However, if you have back taxes, a tax attorney can help you catch up and negotiate a payment plan for what you owe. Typically, you must file back tax returns before appealing to the IRS for a payment plan, offer in compromise, and other tax liability settlement agreements. 

Release of a Federal Tax Lien

Liability collectors, including the IRS, can place a lien on your property, meaning they are claiming a legal interest in it. The IRS takes top priority on this and can put a lien on your financial assets, boat, home, cars, and so on. 

Sounds much like a levy, doesn’t it?

Indeed it does, but there is a difference. The IRS places a levy on your property, intending to sell it and get its money. A lien, on the other hand, can be released. A tax attorney will be the right person to talk to if you have a federal tax lien. 

Many people struggling with tax debts have no idea where to start fixing the problem. They are also unaware that a tax attorney can offer solutions for resolutions in line with their best interest. 

Having tax issues or problems with the IRS is a tough spot to be in, but it shouldn’t take over your entire life. 

Tax attorneys at the Cumberland Law Group have years of experience in tax law and handling IRS tax matters. At the Cumberland Law Group, you can be sure we have seen it all and successfully dealt with hundreds of cases similar to yours. 

When to Hire an IRS Tax Attorney

A tax attorney can help you through some sticky tax issues. However, you don’t need one for every tax issue you encounter. For example, you don’t need an attorney to file your current return. Nor do you need one when you have a small late return filing penalty. 

Likewise, you can handle setting up an uncomplicated payment plan online without legal representation. 

However, the more complicated your tax issue is, the more helpful it becomes to get a lawyer on board. For example, getting a lawyer is a smart move when you owe enormous amounts of cash, haven’t filed for years, or have a lien or levy. 

In this case, an attorney can assess the situation, explore solutions with you, negotiate on your behalf, and minimize damage to yourself and your businesses much as possible. 

Similarly, when faced with criminal or civil charges for tax evasion or fraud or want to dispute your tax bill, an experienced lawyer is indispensable for the process. The same goes for when you are being audited. A tax lawyer can offer valuable advice, inform you of why you are being looked into and protect your rights. 

At Cumberland Law Group, we offer you a free consultation to begin the process. You can discuss the issue with us, and we can discuss possible solutions. If you are satisfied with the entire process, you can hire us. 

Finding the Right Tax Attorney

As you may already know, legal representation doesn’t come cheap. If you need to get a tax lawyer on board, you need to be certain that you are getting your money’s worth. 

Here are some tips to help you find a good tax attorney. 

Inquire about Their Credentials

At the very least, the lawyer you pick must have a law degree and a license to practice. In addition, they need to have a permit from the state they work in. 

You can also search them on the bar association website in your state to verify. 

Find Out Their Specialization and Success Rate

There are legal issues that you can confidently hand over to a generalist. However, IRS tax issues need a lawyer well versed in tax law and, more importantly, one that has handled numerous cases similar to yours. When you are on the verge of losing your assets or freedom, you have no time for trial and error. You need someone that can manage the situation competently right from the start.

Another thing you want to ask about is the success rate. Going to court for thousands of clients is one thing; winning most of their cases is another ball game. 

Call Us Today

If you need an IRS tax lawyer, you want one that has dealt with the IRS hundreds of times before. At Cumberland Law Group, IRS tax law is our forte. 

Our expertise aside, we see each client as a human being, not as a new case. As such, we throw all our resources into delivering a win for our clients. Whatever your issue is, call us for a free consultation, and let us get you on the other side.