Do you need a tax lawyer? 

If you are like some people, you likely haven’t thought about bringing in an IRS tax attorney. And although you may feel that it’s a luxurious thing to do, the reality is that you may soon need their services. A tax lawyer has a specialty in the convoluted and complex field of tax law, and plays a critical role in helping individuals and businesses with legal matters surrounding taxes. Additionally, these lawyers also safeguard individuals against tax issues – when brought in early enough.

So, do you need a tax lawyer?

If you are wondering whether to bring in a lawyer or handle the tax issue yourself, then here are some critical pointers to show you the importance of having a lawyer.

When launching a startup

A lot of things run in the minds of entrepreneurs who are starting a new business – but hiring a tax attorney isn’t one of them. For many business people, bringing in a lawyer is a luxury they cannot afford. However, you shouldn’t make that mistake. According to a CNBC survey on small businesses, 22% of entrepreneurs had no clue about their effective tax rate. Unfortunately, ignorance has no defense, and when IRS comes knocking, tax problems might land you in problems. A tax lawyer will not only help you understand the intricacies of the subject but also make you aware of the potential issues that you may face for your business model.

When dividing assets for your heirs

A tax lawyer also plays a critical role in breaking down and guiding you about tax regulations surrounding inheritance. In this case, you will need your estate planning and tax attorney to work together to ensure you are covered in all aspects.

When you aren’t certain about your tax status

If you have a feeling that something is wrong with your taxes, it’s best to bring in an attorney to put your worries to rest. A lawyer will check your documentation and uncover any issues that could potentially land you in problems. They will also inform you of the necessary amends to align you with the law.

When buying or selling a business

Selling or buying a business is involving as it is. When you add the tax to the process, it all becomes complex. If you are the seller, your main goal is to maximize capital gain, and if you are the buyer, you’ll want to recover the buying price faster through depreciation. Having a specialized lawyer by your side can mean the difference between getting a good deal and a raw one.

When you are facing an audit

When IRS audits you, it doesn’t mean you have a problem. But it is normal to dread getting audited. When you receive a notice from the IRS, it is in your best interest to seek out a qualified tax accountant. An audit is more like a small trial or an adversarial exercise. So in as much as you can agree to disagree, you don’t want IRS assuming you have something to hide by lawyering up too soon.

When you have IRS tax dispute

Bringing a lawyer when facing an audit may not be a good idea; however, when a dispute arises from the audit, then it might best to bring in a lawyer. Your tax attorney will communicate with the IRS on your behalf and even negotiate a settlement if the need arises. A lawyer, in this case, will ensure you don’t end up paying more than you need to. In the event you ignored warnings and letters from the IRS, and you end up being threatened with a criminal offense for tax evasion, then the tax lawyer will come to your defense.

Lawyering up will show the IRS that you understand the magnitude of the matter, and are willing to collaborate with them to prevent criminal charges. You will also have legal representation in case the case goes to court.

You engage in multi-national business

When you are involved in international business and require help with tax treatment, contracts, and other legal issues, then a tax lawyer can come in handy. He or she will ensure that everything is up to par and that you don’t run into tax and agreement issues.