Taxes can get complicated. In most cases, a tax professional can assist you with your taxes. However, in some cases, you may need more advanced help from a tax attorney. However, how do you know who to hire? Here are four situations when you should consider hiring a tax attorney.
Corporate finances get complicated. If you make a mistake in your taxes, it can set your business back financially. In some cases, it can ruin the company. A tax lawyer can ensure that you follow the law to avoid fees or mistakes. Your lawyer may also make certain suggestions, such as paying taxes every quarter instead of once a year. New businesses may also qualify for certain tax exemptions, which you may not know are available to you.
You may encounter a situation when your taxes cost more than you anticipated. You may not have the ability to pay the taxes. When the taxes come faster than you can pay them, they can add up to the point of causing you legal trouble. A tax lawyer will do their best to negotiate a tax relief agreement between you and the government that fits your financial situation. Since failure to pay taxes can lead to jail time, you may need a lawyer with experience in criminal law, too.
When someone passes away, they bestow their earthly possessions to surviving friends and family. The recipients of inheritance must pay a tax on what they receive. A tax lawyer will be able to figure the taxes in advance to present recipients with an accurate understanding of what they will receive after they pay taxes. The lawyer can also give insight into how to pass on items in the best way. For example, labeling it a gift instead of inheritance may mean less taxes.
Sometimes a government may disagree with the taxes prepared by an individual or corporation. Small disputes usually go unchallenged as it may cost more to hire a lawyer. However, when the discrepancy involves thousands upon thousands of dollars, a tax lawyer can defend your position for you. As long as you did your taxes within the letter of the law, the lawyer should be able to get a result in your favor.
A tax lawyer works as a mediator between the government and taxpayers. Whenever you find yourself in any of the situations mentioned above, contact your local tax lawyer before submitting your taxes.