Individuals and companies with overdue tax balances may be subject to severe fines from the IRS, including in some cases in the case of personal or business property seizure. To deal with this dilemma – which can trigger a serious financial crisis – a new type of business has been created to help taxpayers in arrears deal with tax debts. These entities, commonly known as tax settlement companies, claim that they can either drastically reduce or completely eliminate everything that a person owes to the Tax Office. Can a tax attorney really help?
When do you need a tax advisor?
Tax lawyers must have a PhD in legal sciences. They must be admitted to the bar to practice the profession. However, these are only minimum requirements. Tax lawyers should also undergo advanced training in tax law. Most will have a Master’s degree in taxation.
Some tax lawyers also have experience in accounting, but not all of them prepare tax returns. Their specialist knowledge focuses on the legal implications of tax situations. If you’re dealing with a complex accounting issue as well as a legal issue, you can look for a lawyer who is also a certified accountant or registered agent so that you can cover both databases. They are rare and can be expensive, but they are there.
What questions should I ask before hiring a tax agent?
- How long have you been practicing law?
- Do you just practice tax law or do you work in other areas of practice?
- Have you dealt with tax situations similar to mine before?
- How do you assess my situation? What works for me and me?
- Can you estimate my total legal fees?
A tax lawyer can help you develop wealth planning strategies to help you stay below the exemption threshold and avoid getting a significant portion of your assets going to the tax office.
If you are starting a business
Each business configuration you choose will have tax implications. A legal advisor can give you advice on the structure and method of taxing your business, including some non-tax issues that you would not otherwise consider.
If you have legal problems
If you’re planning to file a lawsuit against the IRS, if you’re investigating the IRS or you want to seek an independent assessment of your case before a US tax court, you’ll need the help of a competent, experienced lawyer.
Billing company success indicator
The Office rejects most of the compromise offers it receives each year. Therefore, the number of customers who get satisfaction from tax settlement companies is probably below 10%, and most of them are practically without funds. The vast majority of potential billing clients must develop from the IRS payment plans that will allow them to settle tax balances over time, while maintaining their assets – and dignity.