Whether you’re handling a complex tax situation, owe back taxes, or facing tax litigation, find out when it’s time to hire a tax lawyer to represent you.
Due to complex tax laws, many are clueless about how to do taxes. The IRS claims that Americans owe them at least $114 billion, including accumulated back taxes, penalties, and interest for the period.
Whether it’s simple neglect or fraud, failure to pay your taxes has serious consequences. This is where a tax lawyer comes in. Read on to discover why and when you should hire a tax attorney.
Starting a Business
Business taxes are one of the most complicated parts of running a business. Although a business lawyer can help, it’s best to work on these issues with a tax attorney.
Tax lawyers know and understand taxes best. They ensure you follow all federal and state tax laws to avoid expensive penalties. Moreover, your tax attorney can develop tax-smart strategies to lower your liability.
As your legal advisor, they explain your obligations, options, and rights for running a business. When you make financial decisions, they can help you manage their tax consequences.
Estate Planning
Do you know that there are different types of taxes? Leaving assets to your heirs can get you into complex tax implications. Some estate taxes can cut the inheritance you plan to give.
Many tax attorneys specialize in estate planning. They develop a wise strategy to use for transferring assets to your heirs. They can help reduce the impact of estate taxes.
A tax lawyer will guide you through all the paperwork. This includes documents on reduced estate taxes, legal transfer of assets, and other processes. Before drafting a will, contact a tax lawyer.
Filing a Tax Return
Resident citizens and aliens living in the US must file their tax returns. It allows you to compute your tax liability, schedule payments, or apply for a refund. In most countries, residents file tax returns with reportable income every year.
If you fail to file and pay on time, you can incur penalties. Instead of only paying for your tax liability, you pay more because of your negligence.
Do you have problems filing tax returns? If you have no idea how to file, ask for help from a tax lawyer. They can help you prepare your tax returns and avoid late filing.
Applying for Tax Relief
Did you know that you can negotiate with the IRS? If your tax debt is higher than what you can pay, apply for a repayment plan. Doing so allows you to meet your obligations on time and avoid penalties.
If you cannot pay your tax debt on the scheduled date, your tax attorney can help you negotiate. They can ask the IRS to adjust your payment by making an offer in a compromise.
To get approved, prove you cannot pay your obligation on time. Your tax lawyer can help you gather evidence for your case.
Contacting a Tax Lawyer
The US government relies on strict tax laws to fund improvement projects. However, not every citizen is capable of understanding the content.
If you have questions about outstanding tax debt or tax return filing, contact a tax lawyer. Check out our other blog posts to discover more great content.
