It’s difficult to decide if you need to hire a tax attorney. With the wealth of accountants, CPAs, EAs, and general tax knowledge you can find online, getting a tax attorney may seem unnecessary. Of course, this couldn’t be further from the truth. The question remains, though, how do you know when you need a tax attorney?
Thankfully, you’re not alone in figuring this tough question out. The team at Ayar Law has decades of collective tax law experience. We know what works and when it’s time to say, “yes, I need a tax attorney.”
If You’re Facing an IRS Audit
You know you need to hire a tax attorney when you’re facing an IRS audit. Receiving a notice of tax audit from the IRS will send a shiver down the most seasoned business professional’s spine. Not only are audits overwhelming, but, with a tax code that clocks in at more than 74,000 pages, it’s possible that the IRS is auditing you for good reason.
This is where a tax attorney can help. Tax attorneys know obscure IRS procedures and codes that CPAs simply don’t. More to the point, a skilled IRS tax audit attorney can represent you in tax court. Not all audits go to court, of course, but if they do you’re going to want the best possible defense. You’re going to want representation from someone trained to negotiate with the IRS and who knows how to get you the best possible outcome.
If Your Business is Facing Suspicion
Another sign that you need to hire a tax attorney is if your business is facing suspicion from the IRS or other federal agencies. This can be for any number of reasons and doesn’t mean you or your company have done anything wrong. In their search to make sure everyone adheres to federal tax code, the IRS and other agencies will sometimes unfairly suspect companies of misrepresenting their taxes. In this case, you should be proactive and hire a tax attorney to make sure you’re adequately protected.
Many businesses that grow rapidly – through acquisition and mergers, venture capital funding, or other means – will pique the interest of IRS. This is also true for larger corporations that have recently added partners, switched their type of incorporation, or made drastic changes to their board of directors.
Whatever the case, government suspicion means you’re going to need a tax lawyer. Corporate tax structures are complicated, but more importantly, the IRS can unfairly target growing companies. This is especially true of multinationals. In fact, if your growing business is a multinational, you should always have an experienced FBAR tax attorney.
If You’re Facing Criminal Charges
You’re going to need an experienced, aggressive, and talented tax attorney if you’re facing criminal charges. While this may seem overwhelming, a good attorney will be able to fight on your behalf and get you the best possible outcome.
There are a number of criminal charges related to taxes, the most common of which is criminal tax evasion. A federal conviction can carry with it up to five years in prison, fines of up to $250,000, and fees covering the cost of prosecution. It’s safe to say you want to avoid this very, very much.
That’s where a tax evasion lawyer becomes invaluable. Not only will they help protect you from potentially untrue accusations and prosecution, but they can teach you how to properly file your taxes. This will help you in the long-term and makes sure your returns are clean moving forward.