Does it make you uncomfortable that your tax return may be randomly examined or audited?
Though the number of returns that are examined each year is small, consumers should still prepare for having the right support when selected for an audit or dispute. You may be familiar with a CPA who prepares your taxes, but knowing what a tax attorney is and when to hire them is key for complex returns.
Learn more about tax attorneys and the role they can play for you below.
What Does a Tax Attorney Do?
A tax attorney is a lawyer who practices tax law. They have both a law license to represent clients in court as well as a preparer tax identification number to prepare clients’ taxes.
Tax attorneys bring a wealth of legal knowledge to the process of doing your taxes. This could mean they help you optimize your finances, take on disputes with the IRS, and support your future wealth with business or estate expertise.
As Silvertaxgroup.com says, a tax attorney is there to resolve your IRS headaches especially when your financial wellbeing is at risk.
Why Would You Need to Hire a Tax Attorney?
An IRS tax attorney becomes crucial when doing taxes that may become more complex or involved.
Wealth management is a great example of when tax preparation would be best suited with a tax attorney. This could include anything from estate planning, international tax systems, and setting up trusts. An attorney can not only handle paperwork but also create a strategy for minimizing taxes in the future.
Starting a business is another time when a business tax attorney is better for filing your taxes than a CPA. Business and self-employment taxes come with a specific set of laws that is easy to mess up. Rather than working backward from an error, a tax attorney can see how future business endeavors will impact your taxes and bottom line.
Tax disputes are major scenarios in which a tax attorney is a necessity. The IRS may reach out with a dispute or you may need to challenge the IRS on your tax return. A tax attorney acts as the communication line between you and the IRS, bringing the qualifications and expertise to help you out of a sticky situation.
How Can an IRS Tax Attorney Protect You?
A tax attorney is bound by law to upkeep attorney-client privilege and represent you in court. The confidentiality and inherent bond are vastly different from a tax attorney vs. CPA as an accountant would not be able to represent you.
Tax attorneys must obtain a license to practice and often goes to school for years to perfect their law and taxation knowledge. This makes them a perfect fit for when your taxes are more complicated or you have more stakeholders involved.
Simply put, a tax attorney is bound to you as the client and will protect your rights.
Decide Tax Attorney vs. CPA for Your Needs
A tax attorney is a specialized tax preparer and lawyer who will fight for your financial needs with the IRS. You never know when you will need their qualifications to support your complex taxes, so it’s best to reach out before the headache begins.
Want to learn more about how to manage your future money needs? Check out our other articles to prep for financial success.