When Should You Hire a Tax Attorney?

Dealing with tax issues can quickly become a task that is beyond the knowledge of the average person. Depending on the complexity of your situation, these issues can even be beyond certain tax professionals. Unfortunately, many people don’t find this out until they have already spent time and money pursuing solutions in all the wrong places.

How do you know when the appropriate choice is to hire one of Hillhurst Tax Group’s tax attorneys, instead of one of their CPAs, or enrolled agents? The decision depends not only on how complicated the matter is, but also hinges on the severity of the possible legal consequences. , The sum of money involved is also a determining factor — the greater it is, the more likely your need for a tax attorney. Before you head over to hillhursttaxgroup.com, let’s look at some specific circumstances that illustrate these points.

Starting a Corporation

The decision to incorporate is almost always partially motivated by taxes, and different types of corporations are differentiated by how they are taxed. Non-profits are exempt from state and federal taxes, LLCs can be taxed as sole-proprietorships, and other types are taxed as entities separate from the owners.

Determining which tax setup is best for your business is not an easy decision. It requires intimate familiarity with the legal minefield of corporate tax regulations to accurately project which choice will prove most beneficial. If you do business in other countries, then it’s necessary to know their tax laws as well. Not only should you consult with one of Hillhurst Tax Group’s experienced tax attorneys in this situation, but you should keep their web address (hillhursttaxgroup.com) handy for inevitable future consultations.

Settling Significant Tax Debt

When you have accrued tens of thousands of dollars in tax debt, it may not be possible, or financially prudent, for you to pay the amount in one lump sum. Given the fearsome reputation of the IRS, you might be surprised to learn that there are many alternative payment scenarios available. A good tax attorney can work with the IRS to structure the best payment plan for you.

They can also reduce the total that you need to pay, negotiating an “offer in compromise.” The savings achieved on significant sums can more than offset the hiring price of the attorney.

Facing Criminal Charges

When charges are filed against you for tax evasion or fraud, it is imperative that you retain legal counsel immediately. A tax attorney is the only person who can be trusted to represent you in such a case. They have the expertise required to prove your innocence, and to credibly determine negligence as opposed to deliberate fraud or evasion.

Your deliberations with them are protected by attorney client privilege as well. In the worst case scenario, they cannot be called to testify against you. The same can not be said for a CPA.

If penalties are inevitable, a tax attorney will prove invaluable in negotiating the lowest possible severity. Your best defense in a tax case will always be a tax attorney, though make sure to pick one that specializes in the area of tax law that best matches your circumstances. You can find help tailored to your specific needs at hillhursttaxgroup.com.