When you are dealing with the IRS, it is important to have an expert on your side. A tax debt attorney can help guide you through the process and represent you in dealings with the IRS.
But when do you need to hire a tax debt attorney? And what can they do for you?
Here is some information on when and how to hire a tax debt attorney.
What does a tax debt attorney do?
A tax debt attorney is a lawyer who specializes in the laws and regulations governing taxation. They may advise individuals and businesses on how to minimize their tax liability, represent them in disputes with the Internal Revenue Service (IRS), or work in the government to create and interpret tax policy.
Tax debt attorneys may also specialize in a particular area of taxation, such as estate planning, international taxation, or corporate taxation. Some tax debt attorneys also have an accounting background and are able to offer clients both legal and accounting advice.
Do I need a tax debt attorney or CPA
Tax debt attorneys and CPAs are both important for Americans who need to file taxes.
Tax debt Attorneys help with understanding the law, calculating tax liability, preparing forms for you so that you don’t have to do it manually, and negotiating with IRS agents on your behalf during an audit.
They also can represent taxpayers before courts of law or administrative agencies in matters relating to taxation disputes. Tax debt attorneys typically charge more than accountants because they spend more time working directly with clients on their individual cases instead of just doing bookkeeping work for businesses.
CPAs (Certified Public Accountants) provide advice related specifically to financial planning such as retirement investing; they’re not involved in any litigation but focus mainly on making sure all numbers add up correctly.
How a tax debt attorney can help you.
Tax debt attorneys can help you in a variety of ways, including helping you to understand complex tax laws, representing you before the IRS, and help you to file your taxes.
Many tax debt attorneys have years of experience with the IRS and know how to work with the agency to get the best results for their clients.
- Negotiate a settlement – They can also help you negotiate a settlement if you owe taxes or are facing an audit.
- Bankruptcy – And if you need to file for bankruptcy, a tax debt attorney can provide guidance on how to include your tax debts in your filing.
How much does a tax debt attorney cost?
The cost of a tax debt attorney varies depending on their experience and the services they offer. Generally, tax debt attorneys charge an hourly rate, which can range from $100 to $300 per hour. Some tax debt attorneys also charge a flat fee for specific services, such as preparing your taxes or representing you in front of the IRS.
It’s important to remember that the cost of hiring a tax debt attorney can be worth it in the long run, especially if you’re facing serious penalties from the IRS.
If you’re not sure whether or not hiring a tax debt attorney is right for you, consult with one to get a better understanding of your specific situation and the associated costs.
How do tax debt attorneys charge
There are a few different ways that tax debt attorneys can charge for their services. Some attorneys charge an hourly rate, while others may charge a flat fee for a specific project.
Additionally, some attorneys may take a percentage of the amount of taxes that are saved as a result of their work. whatever the fee arrangement, it’s important to make sure that you understand what is included in the price and what is not.
For example, some firms may charge an additional fee for a telephone consultation or email correspondence.
Are attorney fees tax-deductible?
Generally speaking, yes. Attorney fees are generally considered a necessary business expense and, as such, are tax-deductible. However, there may be some exceptions depending on the specific facts and circumstances of each case.
For example, if the attorney fees were paid in connection with the pursuit of personal income rather than business income, they would not be deductible.
Please consult with your tax advisor to get specific advice about how attorney fees may be deductible for your business.
Are tax debt attorneys worth it?
There is no one-size-fits-all answer to this question, as the value that a tax debt attorney can provide will vary depending on the specific needs of a business or individual.
However, in general, tax debt attorneys can be extremely valuable in helping businesses and individuals stay compliant with complex tax laws and regulations, as well as helping them save money on their taxes.
As such, they can often be worth their weight in gold.
Hiring a tax debt attorney may be appropriate in some cases.
Estate planning
They can assist you in developing estate planning techniques and handling the paperwork required to reduce estate taxes, transfer assets to relatives, establish trusts, and other methods.
Starting a business
A tax debt attorney may be able to assist you in developing tax-smart tactics for starting, purchasing, selling, or expanding your firm.
Tax disputes
They can assist you if you have a tax conflict, intend to sue the IRS, state or local tax authorities over a tax issue, or wish to challenge the IRS’s actions before the U.S. Tax Court.
Tax relief
If you have an outstanding tax debt with the IRS or another tax authority that you want to negotiate or dispute, a tax debt attorney might be able to assist you in pursuing choices such as:
- Offer in Compromise
- Innocent spouse relief
- Installment plans to pay tax bills over time
Find the best Tax debt attorney near you
We can help connect you with a tax attorney near you. Depending on your situation, they may be able to offer some relief and help minimize your tax liability. Contact us to get started.
