Taxes are essential in availing resources for governments to deliver vital public services. The majority of your taxes cater to healthcare services, including Medicare, Medicaid, and CHIP at 26%, with social security coming in second at 24%. Tax lawyers specialize in assisting clients in understanding, complying with tax regulations, and resolving legal disputes with tax authorities such as the IRS. Though accounting experts can equally offer financial advice and help clients fulfill their tax obligations, tax lawyers are better equipped to handle complex tax disputes that may require legal representation in court.

Here are two instances where you should hire a tax lawyer.

Tax Litigation

Various tax disputes may necessitate the services of a tax lawyer. For instance, if you are in disagreement with the results of an audit conducted by your state’s tax authorities, you can hire a tax lawyer to help you prepare a defense, plan your next course of action, and negotiate the best settlement possible. While most taxpayers tend to ignore warnings from tax authorities out of fear and lack of knowledge on how to respond, it is important to seek legal counsel as soon as you’re notified about the audit.

Tax penalty relief occurs when a debt owed to the tax authority exceeds the amount of money a client can pay back at once. A tax lawyer can help you get flexible repayment plans spread out over a reasonable amount of time or request an offer in compromise. An offer in compromise will allow you to pay back in part the tax debt owed to the tax authorities as opposed to the total amount. However, you will have to prove that you cannot pay the debt.

In cases where the tax issue is not resolved, the tax authority may choose to make deductions on your salary to clear your debt, place legal claims on your property to prevent you from selling, or impose tax levies on your properties or accounts. If this happens, hire a tax lawyer immediately.

Starting a Business

Starting a business can be a daunting task, especially when you think about all the tax requirements that have to be met. A tax lawyer will play a crucial role in offering insights that will help you maximize tax efficiencies and propel the business to greater heights.

Whether you are developing a business structure for your company, selling or buying a company, forming partnerships, or venturing into international markets, you need a tax lawyer. Remember, each business is unique, and there is no one-size-fits-all guide on how to handle business tax. If you plan to transfer the business or other assets to family members or set up trust funds, a tax lawyer will ease the process and make it much more time and cost-effective.

Make sure that the tax lawyer handling your case is a licensed lawyer and has the right academic qualifications as well as a Preparer Tax identification number (PTIN). Give Michael C. Whelan JD CPA, your local tax lawyer, a call today to get the help you need.