Yes, a tax attorney can help you resolve issues with the Internal Revenue Service (IRS), especially when the situation goes beyond simple tax filing, routine audits, or basic tax planning. Also known as IRS lawyers, tax attorneys represent taxpayers during negotiations or disputes involving complex legal or high-stakes tax matters.
It’s crucial to work with a tax attorney because even a small mistake can lead to serious penalties from the IRS. If you’re facing an IRS investigation for whatever reason, your best chance of avoiding jail time or severe consequences is to consult a tax attorney immediately.
With over ten years of experience, our tax attorneys at Victory Tax Lawyers offer free personalized consultations and proven strategies to handle even the most difficult IRS cases. Whether you need professional tax relief services or simply want to explore your options, our free attorney consultation gives you access to expert legal tax advice.
In this article, we’ll delve into what tax attorneys do, why they’re essential, and how they can assist you with your IRS issues.
Who Is a Tax Attorney?
A tax attorney, or tax lawyer, is a legal expert who specializes in the intricate area of tax law. They represent individuals and businesses in matters involving the IRS, state tax agencies, and the courts.
Unlike CPAs or accounting firms, tax attorneys provide legal protection and advocacy, especially when disputes, audits, or potential criminal charges arise. They help clients negotiate payment plans, pursue settlements such as Offers in Compromise (OIC), request penalty abatements, and stop collections, including wage garnishments and liens.
Can a Tax Attorney Really Help?
Yes, hiring a tax attorney can significantly improve your situation when dealing with IRS problems. Ignoring tax issues can lead to severe consequences, including federal tax liens, financial penalties, asset seizures, or even legal action. Here are some situations where a tax attorney can help you:
1. IRS Audit Representation
IRS audits are intimidating and stressful, especially if you’re uncertain about your rights or how to respond to IRS inquiries. Even with preparation, an IRS audit can be a significant hurdle. A tax attorney helps relieve the stress by guiding you through the process and protecting your interests.
A tax attorney provides full support throughout the IRS audit process. They handle everything from pre-audit preparations to identifying discrepancies that could attract the IRS’s attention. They also respond to all IRS notices and develop effective audit strategies.
During the audit, the attorney will act as your representative in all meetings and communications with the IRS. This protects your rights and prevents you from saying or doing something that could worsen your case. If the audit results are unfavorable, a tax attorney can file an appeal to challenge the resolution.
2. Resolving Tax Debt
If you’ve fallen behind on a payment plan, failed to file tax returns for years, or are facing IRS collection actions, a tax attorney can help. They can work with you to create a tax payment plan tailored to your financial situation.
For individuals with significant tax debt, a tax attorney can explore relief options, such as an Offer in Compromise, which allows you to settle your tax liability for less than the full amount owed. Notably, a skilled tax attorney doesn’t rely on one-size-fits-all solutions; they analyze your circumstances to determine the best strategy.
3. Tailored Solutions to Individual or Business Needs
No two taxpayers face the same circumstances, which is why a generic solution often fails. A knowledgeable IRS tax attorney begins by understanding the details of your case and then develops a personalized strategy to achieve the best resolution for you or your business.
Depending on your situation, this may involve minimizing tax liability, representing you before the IRS, resolving disputes, or creating a comprehensive plan for future obligations. Whether you’re an individual or a business owner, a tax attorney helps resolve tax problems while protecting your interests.
4. Addressing Tax Liens and Levies
If you default on your tax bill, the IRS can place a lien on your property and even on future assets acquired while the lien remains in effect. In more severe cases, the IRS may impose a levy, seizing your bank accounts, wages, or physical property to settle outstanding tax debts.
Tax liens or levies can significantly impact your finances, but an experienced tax resolution attorney by your side can help resolve these problems. They can file appeals on your behalf to lift liens, stop levies, and implement strategies to protect your assets from aggressive IRS collection actions.
5. International Tax Issues
International tax laws are complex, particularly those involving offshore accounts, foreign income, or expatriate tax requirements. For this reason, many businesses and individuals face challenges with international tax compliance.
An IRS tax attorney helps you understand which rules apply in your jurisdiction, preventing costly mistakes that could trigger penalties. They also ensure compliance with regulations like FATCA, assist with foreign asset reporting, and help you avoid steep non-compliance fines.
6. Business Tax Disputes
Running a business comes with its fair share of tax-related challenges. From payroll tax issues to corporate tax compliance and sales tax disputes, these matters can quickly become overwhelming, especially for startups and businesses operating in multiple jurisdictions. An experienced tax attorney can simplify the process, resolve issues efficiently, and ensure compliance with the law.
7. Estate and Inheritance Tax Planning
Planning for the future often requires addressing estate and inheritance tax matters. A tax attorney can develop strategies to reduce estate tax liabilities, set up trusts, and create tax-efficient structures. Beyond strategic planning, they also handle the legal paperwork to ensure estate planning efforts comply with tax laws while preserving wealth for your heirs.
8. Penalty Abatement
IRS penalties can add significant financial strain to an already stressful tax situation. While penalty abatement may be an option with the IRS, securing approval isn’t always straightforward; it requires more than just filling out a form.
A skilled tax attorney manages every aspect of your penalty abatement request to maximize your chance of success. They help you determine your eligibility, build a strong case, and negotiate with the IRS on your behalf. If you’re unsure whether you qualify for penalty abatement, consider scheduling a free consultation with an experienced IRS tax attorney today.
How to Choose the Right Tax Attorney
While anyone with the right qualifications can serve as a tax resolution attorney, choosing solely on this metric can lead to negative consequences. Here are things to look for when choosing a tax lawyer:
Experience and Expertise
Expertise in tax law and related fields is essential when choosing an IRS lawyer because the tax code is complex and often changes. So, having a lawyer who specializes in this area ensures you’re getting accurate and up-to-date guidance. Experience also matters, as a seasoned attorney with years of practice is better equipped to handle your complex tax issues.
As such, look for attorneys with a proven track record in cases similar to yours. For example, if you’re facing an IRS audit or dealing with international tax issues, choose a lawyer who has successfully handled such cases in the past for other clients.
Additionally, local expertise can be invaluable. A local tax attorney familiar with your state’s tax laws is better positioned to help you handle jurisdiction-specific tax cases. At Victory Tax Lawyers, we have an excellent record of delivering favorable outcomes. Don’t just take our word for it, check out our settlement alerts to see how we’ve helped clients resolve their tax problems.
Credentials and Licensing
A reputable attorney should have a solid educational background, including a law degree from an accredited law school, and must be licensed to practice in the state where they’ll represent you. Beyond the basics, advanced certifications such as a Master of Laws (LL.M.) in Taxation demonstrate a deeper level of expertise.
Always verify bar membership to ensure the attorney is in good standing with the state bar association. Additional qualifications, such as memberships in professional groups like the American Bar Association’s Section of Taxation, show commitment to staying current on tax law developments.
Reputation and Client Reviews
Reading through reviews and testimonials from previous clients can give you a clue about the attorney’s reputation, competence, and reliability. Platforms like Google Reviews, Avvo, Justia, and the Better Business Bureau are good places to start when searching for unbiased ratings and honest feedback.
Don’t just rely on the ratings; take a look at the comments. Are there consistent mentions of successful outcomes, clear communication, and a client-centered approach? A simple look at their website can also provide information about them.
Cost and Transparency
Before hiring an attorney for IRS issues, review their fee structure and the services included. An attorney’s fee can vary significantly based on experience, location, and expertise. Some lawyers may charge a flat fee for specific services, while others might bill by the hour. Some may even work on a retainer or contingency basis, depending on the nature of your case.
Be sure to understand the billing structure and any additional costs that might arise. Transparency is key here. Ask about all potential fees upfront to avoid any surprises. This ensures that the legal assistance you need fits your budget without causing extra financial strain
How a Tax Attorney Differs from Other Tax Professionals
Most people don’t know the exact tax expert to approach when seeking solutions to tax problems. Here’s how tax attorneys differ from other tax professionals:
Tax Attorneys vs. CPAs (Certified Public Accountants)
Both CPAs and tax lawyers are highly qualified professionals, but their expertise and services differ significantly. Understanding these differences helps you choose the right one for your specific tax needs.
A tax attorney specializes in the legal aspects of taxation, including disputes, compliance with tax laws, and legal precedents. They represent clients in IRS matters, negotiate settlements, and handle complex cases like audits and criminal tax investigations. A tax attorney can advocate for you in tax court and develop legal strategies to minimize liabilities. If you or your business face serious tax concerns, a tax attorney is the professional you need.
A CPA (Certified Public Accountant), on the other hand, focuses on financial matters, including tax preparation, accounting, and financial planning. CPAs assist with filing returns, reviewing financial records, and maximizing deductions to reduce tax liabilities. They also provide financial advice and long-term tax planning. However, CPAs cannot represent you in tax court or handle legal disputes with the IRS.
So, if you need routine tax filing, financial advice, or planning to reduce your tax burden, a CPA can get the job done. But if you’re faced with tax disputes or criminal investigations or need tax advice or legal representation in tax-related matters, a tax attorney is your best bet. Here’s a quick comparison:
| Tax Attorney | Certified Public Accountant | |
| Exam for Licensure | Bar exam | CPA exam |
| Ongoing Education | Continuing legal education (CLE) | Continuing professional education (CPE) |
| Specialties | Law: legal disputes, tax laws | Financials: accounting, tax preparation |
Tax Attorneys vs. Enrolled Agents
Both tax attorneys and enrolled agents (EAs) are authorized to represent taxpayers before the IRS. However, there are significant differences in their qualifications, scope of practice, and the types of tax issues they can handle.
Enrolled agents can negotiate with the IRS and resolve most administrative tax issues. However, their authority ends there. They cannot represent taxpayers in court or criminal tax matters, which is where a tax attorney becomes important.
A tax attorney can represent you in court, defend against criminal tax charges, and provide legal guidance on complex tax laws and business transactions. While EAs must pass IRS exams, their certification requirements are less rigorous than those for CPAs and tax attorneys, leaving them less equipped to handle cases requiring advanced legal expertise.
Signs You Need a Tax Lawyer
Tax problems often start small. It’s particularly easy to brush off tax-related issues when they seem minor. However, they tend to escalate very quickly when left unchecked. Even simple errors, such as entering the wrong Social Security number, filing too early, or misspelling your name, can snowball into serious problems if not corrected promptly. Here are some signs that let you know that it’s time to bring in a tax expert:
- Discrepancies Between Your Records and the IRS: If you notice discrepancies between the tax records you’ve filed and the IRS’s records, it could signal problems, such as issues with deductions, mismatched income, or other tax errors. Whatever the case may be, these errors could lead to issues with the IRS.
- Missed Tax Filings & Payments: Failing to pay your tax bill on time is a common issue among taxpayers. If you’ve missed a tax filing deadline or payment, don’t ignore the situation. The IRS imposes penalties for late filings, and if you fail to address them promptly, the fines and interest can quickly accumulate.
- You’re Under Criminal Investigation by the IRS: If you’ve received notice from the IRS that you’re under criminal investigation for tax fraud, seek legal representation immediately. This is one of the cases where an attorney is non-negotiable. Unlike civil litigation, criminal investigations can often mean jail time and serious fines if they are not handled by an expert.
- You’re Facing a Large Tax Audit: Not all audits require a tax attorney, but certain situations definitely do. If your audit involves multiple years of returns, significant income (such as business or self-employment income over $100,000), complex deductions, or international assets, you should work with a professional.
When You Might Not Need a Tax Attorney
Despite how important an IRS tax attorney may be, not all situations require one. You don’t need a tax attorney for simple tax filings, low-complexity audits, general tax planning, and bookkeeping. You may handle some of these basic things yourself or consult a tax advisor, such as a CPA.
Factors to Consider When Deciding if You Need a Tax Attorney
It can be tempting to cut costs and handle tax issues on your own, especially if you’re already facing financial strain. Tax problems are more serious than they appear and require the expertise of a qualified tax attorney. Here are some factors to take into consideration if you’re unsure whether to hire a tax lawyer or not:
Financial Stakes Involved: Simply put, how much money are we looking at here? If your tax issues involve substantial amounts of money, whether unpaid taxes, penalties, or interest, a tax expert is the person you need on your case.
The Complexity of the Case: You can correct some mistakes yourself, but if your tax issues involve more complicated matters, like business taxes, multiple years of returns, or international tax concerns, then you’re better off hiring someone with a specialty in tax law, particularly one who specializes in the specific area where you need assistance
Receipt of Legal Notices from the IRS: If you’ve received any IRS legal notices, such as liens, levies, or threats of legal action, it’s a clear indication that you need professional legal assistance to avoid further complications.
In most cases, a mistake on your tax return, like missing deductions or incorrect filing status, can be corrected by filing an amended return with the help of a tax professional. These are usually not cause for alarm. However, if the IRS suspects anything beyond a simple error, an experienced tax attorney is what you need.
Need a Skilled IRS Tax Lawyer?
A tax attorney plays a vital role in resolving complex tax issues, providing legal insights, negotiating settlements, and drafting essential documents. Whether you’re facing a dreadful IRS tax audit, dealing with a business tax dispute, or need simple advice on how to manage your tax returns, our tax attorneys can manage your unique tax situation effectively.
With over ten years of professional experience in handling a wide range of tax issues, Victory Tax Lawyers can guide you through the complexities of local and federal tax laws to ensure you are equipped every step of the way. Want to save yourself stress and issues down the line? Contact us now for a free consultation.
FAQs
Here are answers to some of the most frequently asked questions about how a tax attorney can help resolve IRS tax problems.
What Are the Benefits of Hiring a Tax Attorney for Tax Debt Relief?
A tax attorney protects against IRS wage garnishments, bank levies, and property seizures while negotiating a resolution. Unlike accountants or tax relief companies, attorneys can represent you in IRS appeals, audits, and the US Tax Court.
Additionally, notable tax attorneys like Victory Tax Lawyers provide the attorney-client privilege, where you can be completely honest about your financial situation without any fear that it could be used against you.
How Long Does It Take for a Tax Attorney to Resolve a Tax Issue?
A tax attorney can resolve simple tax issues, such as securing payment plans or penalty relief, within a few months. More complex tax issues, such as Offers in Compromise or Tax Court litigation, can take one to three years.
Is it Worth Getting a Tax Attorney?
Yes, getting a tax attorney is worth it all, especially when you have a complex legal case involving a large tax levy, business taxes, back taxes, or it involves IRS disputes or audits, where only tax attorneys can represent you in the US Tax Court. For routine filing or simple audits, you could make use of the services of a CPA or any reputable accounting firm, both of which are usually cheaper and more effective.
Can a Tax Attorney Negotiate With the IRS?
Yes, a tax attorney can help negotiate with the IRS on your tax settlements, reduce penalties, and set up payment plans. They are important, especially if the taxes owed are large, or your case is a potential fraud or legal dispute.
Do Tax Relief Services Really Work?
Tax relief services aim to help taxpayers reduce, manage, or settle owed taxes by negotiating with the IRS on their behalf. This service can be helpful; however, most of what they do can also be done directly through the IRS or with a CPA or tax attorney.
How Much Does A Tax Lawyer Cost in the US?
An IRS tax attorney charges an hourly fee ranging $500 to $1,000 and a flat fee between $2,000 and $100,000 or more, depending on the scope of work, location, and expertise.
Do Tax Lawyers Really Help?
Yes, tax lawyers are invaluable in IRS cases that are considered severe. They negotiate tax payment plans, court representation, and attorney-client privilege. Tax lawyers have a deep understanding of the tax rules when handling complex tax problems.
What to Expect When Consulting a Tax Attorney
When you consult a tax attorney for IRS issues, you can expect a confidential review of your case, followed by a detailed evaluation of the facts, potential risks, and likely outcomes. The attorney will then provide you with a tailored strategy for resolving your tax problem. In addition, your tax lawyer can act as your direct representative with the IRS, managing all legal and negotiation matters so you don’t have to deal with stressful calls, letters, or meetings.
