When should you hire a tax attorney?

This is difficult to answer especially when the assumption out there, is that the situation doesn’t require such a drastic measure. Approximately 2,276,567,3OO is collected by the IRS from tax evasion cases. Half of those people who paid this hefty fines wish they would have hired a tax attorney earlier than they actually did. You don’t want to end up like those people do you?

Who is a tax attorney? This is a lawyer who specializes on all the legal tax cases. They represent an individual in court and handle all the complexities that are associated with suites filed by the IRS for lack of compliance with prevailing tax laws.

Now, let’s dig deeper into the situations that you will encounter that will probe you to hire a tax lawyer.


What is a tax audit?This is basically a review of your personal or your company’s filed tax returns. Normally, they perform a cross check on various documents. With no intention to scare you, but at the point you receive a tax audit from the IRS, you should ensure you have a tax attorney. You will be called in by the agent to sit and discuss your report and the settlement, if any. You will need a tax attorney at that point. When you are called in for an audit report by the IRS, ensure you contact a licensed tax attorney and have in your possession all the necessary documents such as receipts and checks.


Now, this is not ajoke. Tax evasion is an illegal act under the Constitution that describes the intentional default of payment of all taxes, regardless of whether they are personal taxes or an organization’s taxes. It can land you jail time at worst or cost you a pretty penny, ranging in the millions, as compensation. The IRS have an online database which detects if the numbers filed in your tax returns don’t match up. Now, if they find a really huge discrepancy in the amount of tax that you have been paying, they will file a court case. This will normally happen three years after you have received a tax audit. One case which will land you a tax evasion charge, is whereby your monthly income is not as it is stipulated in the IRS database. I don’t have to tell you that you need to lawyer up, when you have been charged for tax evasion.


Now, there is a common myth that has made its rounds for decades, there is a difference between tax evasion and tax avoidance and we will look into that.

Tax avoidance is common with corporations which use “loop holes” in the form of IRS codes, stipulated from SubtitIeA to K. Tax evasion, on the other hand, entails provision of entirely false information on an individual’s wages. Now, these IRS codes give companies a leeway to reduce their tax returns by claiming they are incurring other expenses that are lowering the amount of money being generated. Examples include: health benefits for employees, retirement benefits and even in the case where there is funding directed to a presidential campaign. It is a felony and the minimum jail term is five years; this is when you will need an extremely qualified tax attorney.

These are some of the cases that will probe you to get a tax lawyer, and if you find yourself in any of these three cases, rush and hire one, they will assist in the tedious process, and even prevent further damage.