3 Advantages of Using a Tax Attorney for Legal Help
When you get contacted by the IRS to be audited, it can bring on immediate feelings of panic, stress and uncertainty. This is especially true if you have a business at stake. Most business owners already have so much on their plates to think about. Being examined under a microscope by the IRS is the very last thing anyone wants to deal with. When you own your own business, there is a lot on the line financially. If you are being audited, it is important to reach out to a tax attorney for legal help.
Getting help from an experienced tax attorney will help you in many ways. It will ensure that the IRS auditor only receives the exact information that they need. If a taxpayer tries to go through the process alone, they might end up divulging too much personal and sensitive information. This could end up resulting in further auditing from the IRS and a worse possible outcome for a taxpayer. A lawyer by your side will also help you to minimize any penalties and liabilities you may be on the hook for. Lastly, a tax lawyer will help keep the auditor from making any mistakes that can cost you.
Below are some of the main advantages of hiring a tax attorney for legal help during an audit:
Because of client-attorney privileges, any communication that goes on between you and your lawyer is strictly confidential. They are not allowed to discuss anything with the IRS about your case unless you specifically allow them to do so. However, it should be noted that attorney-client confidentiality privileges are limited to State and Federal tax matters. Tax attorneys may get subpoenaed by the IRS to testify against you if a case goes to court, but attorneys are not legally allowed to speak about private information you have discussed with them.
Court Representation, Knowledge And Experience
CPAs and EAs don’t have the same ability to represent you if your IRS tax case goes to court. Even if you have only a slight chance of the IRS taking you to court, you will want to have a tax attorney by your side. They will be able to effectively represent you and make sure you are treated fairly. They are able to represent clients in court because they have a deep knowledge of tax regulations and codes. They also know the best ways to deal with any legal and bureaucratic complexities which may arise. Additionally, tax lawyers that have IRS experience already know where the auditors will look for vulnerabilities. This allows your tax lawyer to put strategies into place that are proven to defend you and get you a better case outcome.
Unlike CPAs and EAs, tax attorneys are trained fully in the adversarial system. This means that attorneys will always advocate for their client’s interests and are willing to work with you towards positioning your audit in a way that helps you most. As an example, if a client does not have the receipts needed for the audit, the attorney will work with you to find a way to prove those expenses using circumstantial evidence.
If a client needs to prove something such as mileage and they do not have any records of proof, a tax attorney can work with them to find other ways to prove the mileage. Your attorney may use things like emails, industry averages from other similar professionals, calendar notes and more to build circumstantial evidence.
Tax laws can be very complex. There are a lot of costly mistakes that can be made if you try and deal with your IRS audit without the help of an experienced tax attorney. They can be especially useful when it comes to communicating with the IRS and auditors for you. A lot of people ignore IRS letters or warnings because they are worried they will respond wrong and get themselves in worse trouble.
If you find yourself getting notices from the IRS and are due for an audit, do not ignore their communication efforts. Doing so will leave them with no other choice than to threaten you with criminal prosecution. Dealing with IRS auditors does not have to be scary when you have a good tax lawyer on your side.