Facts to Remember About Tax Attorneys
Owing taxes to the IRS is the worst thing that can happen, especially if you have entered a bad financial situation.
Even though the taxes are essential for things surrounding us, such as security, health programs, sidewalks, paved roads, and many more, we tend to neglect them altogether.
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Sometimes it happens intentionally while other times by mistake, but you may avoid filing the taxes or do not do it properly, leading to future issues. If you do so, it can lead to an audit and criminal investigation, which will compromise your future.
Finding a tax lawyer will help you handle potential issues, primarily since they can provide you with help against the IRS.
What Do They Do?
People are not aware of what they should expect from lawyers in general. Reality tells us that tax lawyers come with a wide array of skill sets and responsibilities that will provide you peace of mind.
Of course, they can help you deal with filing returns, handling IRS audits, and many more things that we will mention in further text:
1. Owing Back Taxes
Owing taxes does not require a lawyer’s help in all situations. However, you may find yourself in a situation where you owe plenty of money to the IRS, which is why you should consider the best way to pay everything without penalties and interest.
In this particular situation, lawyers will create a formal agreement with your government to get the ability to pay everything in installments and reduce the overall amount you should give.
2. IRS Audit
The most common situation that happens if you neglect to file for taxes or do not adequately include the IRS audit. It is the comprehensive investigation of your financial and records to determine the issues, among other things.
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We can differentiate three types of audits, including:
- Office audits tend to happen if the IRS asks you to bring all your documentation and receipts to their nearest office.
- Field audits tend to get most invasive, and they happen when the IRS sends an agent to your business premises or home to perform a financial audit.
- Correspondence audits are not as complicated as the ones we have mentioned above, which means you are doing them through the mail.
Even though these audits are familiar places in case of a particular problem, they do not have to lead to severe consequences. However, you can find an attorney to represent and help you throughout the process.
Generally, they can represent you if the IRS takes you to court, or they can appeal a particular audit to prevent it from happening in the first place.
3. Complex Taxes
In case you live alone, and you are single, you do not need to hire legal counsel for filing taxes in general. However, if you are a business owner with plenty of employees, you should find someone who can provide you a help with particular financial issues that may happen.
Generally, an attorney can guide you to follow particular legal parameters that you cannot neglect along the way. At the same time, they have the proper knowledge to organize your employee documentation and records.
It is vital to understand every aspect of deduction you should get, which will reduce the money spent on taxes.
4. Creating a Will
If you wish to set up your will and determine all your possessions, property, and money, you should find a tax attorney to be with you in the process.
That way, you will understand the aspects of tax exemptions that come with the trust and other regulations associated with inheriting possessions, property, and money.
5. Starting a Business
Entrepreneurship is not as simple as most people think, especially since you need to consider numerous business aspects apart from your industry niche.
That is why you should find a lawyer to let you determine the self-employment taxes you need to file and business files that you should provide to make everything relevant.
The attorneys can advise business types such as S-corps, LLC, or corporation in which you will get different taxes altogether.
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It is crucial to find a professional who has enough knowledge and information to assist you with the process. Most novice business owners do not have a proper understanding of everything they need to handle.
They can also help business owners avoid troubles with the IRS by maximizing the expected refunds and other incentives you may get as a first-time business owner.
6. Selling or Buying a Business
If you wish to sell or buy a particular business, you should find a lawyer go through with you with the process. Remember that the negotiation process with business changes are not as simple as people think, and they come with specific implications you need to remember.
You will find an expert who can help you reduce the issues that can happen throughout the business exchange. Besides, you will learn more about different allocation options.
7. The IRS Criminal Investigation
Another reason for finding a legal representative is to protect you against criminal investigations with the IRS. In this particular scenario, the lawyer will negotiate with the IRS, express sincerity of your mistake, and keep you out of jail.
On the other hand, if you are guilty of something, you should find another person who has experience in court because most proceedings at the tax court end up with the accused is guilty.
Remember that court is a place where both citizens and businesses handle charges, claims, and allegations by the IRS. Therefore, if you have issues with small claims, you will not need legal representation.
On the other hand, if the amount of money is significant, you should have someone by your side to assist you with the criminal charges. However, if the amount of money or the allegations in question are severe, you need to have an experienced tax attorneys Georgia on your side.
8. Protect Your Belongings
In case you owe to the IRS money, they will start to seize your assets, which will affect your financial situation. We are talking about everything you own, including bank accounts, homes, vehicles, and many more.
A tax attorney can help you create a strong defense against the IRS to protect your belongings. Since the IRS will send you warnings and demand the payment in money, the overall process of seizing your belongings is not as fast as most people think.
Therefore, you can hire an attorney to prevent this particular problem and create the best agreement to protect your assets.