Of the professionals that you can turn to for help with IRS problems, tax attorneys can most effectively help you sort through legal issues. Hiring such an expert is the most efficient way of getting on the right track. Here are seven reasons that make them valuable and indispensable:
Reason # 1: Client-attorney Confidentiality
All the information you share with a tax attorney is treated as confidential, in the same way conversations with your priest and your doctor are. This is particularly crucial in trials, as they cannot be forced to disclose what they know. Therefore, you can disclose all the important details, ask in-depth questions, and brainstorm all possible scenarios without fear that these will be held against you.
Reason # 2: Specialization in Tax Law
Considering that taxes are based on law, a tax attorney can be your most reliable ally. While it may seem tempting, studying the tax law on your own so you can represent yourself in front of the IRS is not nearly as effective as having a professional on your side. For starters, tax law is one of the most challenging areas of the law. It is like a vast, black hole waiting to swallow up anyone who dares to enter. It has put many a taxpayer on the brink of insanity. Why? Nothing in the Internal Revenue Code is black or white. Knowing their way around the regulations, tax attorneys can guide you through the ambiguity, pointing out all the gray areas. They are also equipped to leverage the different interpretations of the law to your advantage. In addition, federal and state tax laws change frequently, so you will need a professional to help you stay on top of the current developments in the law. Tax attorneys follow the rulings and are in the best position to give you updates and to provide practical and sound advice. Finally, regulations vary from state to state. An attorney can keep you informed on each state’s codes. With an expert overseeing your situation, you can be assured that whatever course of action you take is within the letter of the law.
Reason # 3: Experience in Dealing With the IRS
Let’s face it. Dealing with the IRS can be both stressful and overwhelming. A tax attorney can help you level the playing field. A lawyer will know which approach works best based on your individualized situation and how best to present your defense. You can also expect advanced negotiating skills, ensuring that you end up with a reasonable settlement offer. This expertise ensures that all bases are covered, so that nothing is left up to chance.
Reason # 4: Find Out All Your Possible Options
A tax lawyer can advise you on which strategy is best for you, taking into consideration your individual circumstances. Upon review of your tax debt history, a tax attorney can also provide you insight on interest and penalties. People falsely assume that all IRS penalties are accurate and unassailable when there might be certain fees you can dispute.
Reason # 5: Time Is Money
The Internal Revenue Code and Treasury Regulations are voluminous — together they fill more than 1,700 pages of legal fine print. A tax lawyer can help sift through the code, separating the wheat from the chaff. Not only does a tax attorney know what needs to be done, but also when and how the problem can be resolved fast. Not having to troubleshoot pestilent tax issues on your own will give you peace of mind and allow you to spend your time where it’s needed most: in the day-to-day workings of your business.
Reason # 6: Don’t Miss Out On Deductions
Travel, new equipment, and yes, even coffee and donuts, may be deductible business expenses. However, each comes with very specific requirements. A tax attorney can help optimize ways to offset your income.
Reason # 7: Ignorance Is Not Bliss
Tax laws change frequently, as do IRS interpretations of the tax code. Not knowing these laws and regulations is no excuse to not follow them. Hiring a tax lawyer can be your insurance against ignorance, allowing your business to stay clear of a dreaded audit.
While tax attorneys may cost you, the peace of mind, security and the tax relief they can give you is priceless. Finding yourself one is just what you might need to start living debt-free.