Have you received a big tax bill because some of your deductions have been disallowed, or because your employer failed to withhold the proper amount? Chances are that you spent all your cash already, because you hadn’t realized that you would owe so much tax. Perhaps your tax bill has been building over the past few years as you haven’t been able to pay it off by the end of the year.
You may be dissuaded from hiring a tax attorney, as you do have to pay their bill, on top of your IRS tax bill. However, if your taxes are complicated, it can be worth hiring an expert.
The main reason is if something has been missed on your taxes. Perhaps they are denying you a big tax deduction even though you feel it’s valid. Perhaps you need more time to file. A tax attorney can also assist you with forgiving part of your tax bill. Then there are also the considerations that failing to pay your taxes over time can land you in prison, or even affect your future chances for gainful employment.
If you’re received notice that you’re being audited, you may need to hire an attorney. This is so you have representation that can help you to negotiate with the IRS both during and after an audit. If you’re subject to an audit, that means the IRS hasn’t approved your tax filing, and something is about to go wrong for you.
A good tax attorney can work on your behalf during the audit. They may even be able to settle your total debt for less than you owe. This is called “an offer in compromise”. They can also ask to have a “penalty abatement”, or help to put you on a payment plan.
Just like with any industry, the tax industry has their own language too. It can be difficult for the average person to negotiate with the IRS when they’re throwing certain tax terms at you. It’s important to have a tax attorney by your side who can break down requests in language you can understand. It also helps that you have someone to speak to the IRS on your behalf who is knowledgeable and will stand up to a fair compromise
Criminal charges, even when related to taxes, can be serious. This can compromise your current employment, particularly if you work in law enforcement, finance, or as a teacher. It can also be disastrous for your career and your life if you are sentenced to prison. If you believe there may be criminal charges filed, it’s important to hire an attorney immediately. They can help to reduce hefty fines too.
If you find yourself with a hefty tax bill of over $5000 that you have no clue how to pay, contact a tax attorney. They can assist you so that you feel less stressed out and better able to lead a happy normal life.