10 Reasons to Hire An IRS Tax Attorney
Many tax resolution firms or IRS tax attorneys claim to have the competency to handle out of state tax resolution cases, however, not every firm is fully capable of following through on their promises with out-of-state clients. Tax resolution firms handling out-of-state cases may encounter difficulties when the tax problems involve state tax laws. Tax laws for each state can be widely different. In fact, the California Tax Code alone has over 60,000 rules. Although the Internal Revenue Code, the tax code used by the federal government, is unchanged across all U.S. territories and the District of Columbia, it is not uncommon for a taxpayer to owe money to both the federal and state governments. Finding an IRS tax attorney or Enrolled Agent in your local area may provide you with significantly better service and substantially reduce the time lapse between your initial contact and your tax resolution. Most important, hiring a local IRS tax attorney or Enrolled Agent can provide you with much more reliable service.
By hiring local, you have the opportunity to visit your IRS tax attorney or Enrolled Agent in a face-to-face meeting. This gives you a chance to visit their office, check their credentials, and remain in contact without additional hardship that is often caused by phone calls and mail. Furthermore, many tax firms claim to have IRS tax attorneys on staff, however, they hardly task the attorneys with servicing your account. It is important that you ask whether an actual tax attorney will be working on your case for two chief reasons. The first being that if the firm is requiring you to pay for the services of an IRS tax attorney, they are typically higher than those of an Enrolled Agent and, thus, may be unjustifiably high. Generally, income tax attorneys possess the highest degree of knowledge relating to the tax code. If you believe your case may be an exceptionally complicated one, it is critical that your case is handled appropriately for a timely and painless tax resolution process.
Many tax resolution firms claim that the process should take between 9 and 12 months while only 6 months is needed. Procedures that are required to complete the tax resolution process involve constant communications from the tax relief attorney or Enrolled Agent assigned to your case. Complications due to time zones, weather affecting mail delivery, or lost mail can add several weeks until your case is resolved with the IRS. By hiring a local tax resolution firm, you will bypass communication hiccups and clear your IRS debt much faster.
Settling your tax debt can entail a long and complicated process. For more information on how the Hillhurst Tax Group located right off of Los Feliz and the 5 Freeway can help you resolve your tax problems in only 6 months, email us at info@hillhursttaxgroup.com or call us to set up a free consultation with our IRS tax attorney or Enrolled Agents at (323) 486-3314.
Why Hire An IRS Tax Attorney
In this article we will talk about the most common reasons for hiring an IRS tax attorney. Tax problems cause sleepless nights for millions of Americans and delaying the problem will only make the situation worse. Most people who face IRS tax problems turn to a tax attorney for help. Below are the most common reasons for hiring an IRS tax attorney to obtain the proper tax relief results.
1. The U.S. Tax Code is Confusing
The tax law is complicated. It runs about 70,000 pages. Every taxpayer has a unique case where they may need to know and understand the tax code to prevent abusive and illegal practices done by IRS revenue agents and officers. The only qualified individuals to deal with this are IRS Tax attorneys preferably those who also are either tax certified specialists by their state or have a masters in tax law degree LLM. In certain cases, the IRS makes mistakes on a taxpayer’s liability and having a licensed tax attorney that knows the code will drastically increase the likelihood of a taxpayer reducing his tax debt.
2. Save you valuable time and relieve stress
Time is money. As a hard working wage earner or self-employed business owner, it’s very time consuming dealing with the IRS and working a full time job. Many clients have stated that they are mentally drained trying to solve their tax issues and this affects their work causing them to under-perform and neglect their business. Hiring a tax attorney will allow you to focus your energy on your personal life. You will sleep better knowing the issue is being solved by a professional. As a client, it’s best to get weekly updates and invoices from your attorney. This will give you the assurance you need that the work is being done.
3. Choose the right Offer In Compromise
An IRS Tax attorney can help you negotiate a settlement with the IRS. Most people do not know that there are three different types of offer in compromises in place. They are doubt as to collectability, doubt as to liability, and effective tax administration. Most taxpayers don’t submit the proper offer causing a rejection and are now stuck paying the IRS back the full debt amount with interest and penalties. A knowledgeable tax attorney can help you determine which one you should submit for optimal results. For more information on the offer in compromise click here.
4. IRS Tax Audit Help & Representation
The first step in effectively solving an IRS debt is taking action immediately. Not only does this show good faith, but also it increases your chances of lowering a tax liability while your records are still fresh. The best example is getting an audit letter from the IRS claiming you owe money. An IRS tax attorney can effectively represent you in a tax audit to make sure that the assessment made by the revenue agent is not more than what you need to pay. Most taxpayers make this mistake of going to an audit by themselves and end up leaving with a hefty bill. The worst thing you can do is to represent yourself. This can cause the IRS to obtain more information from you than you are required to give by law and expand the audit process to multiple years, which you never expected. Stopping the fire before it gets bigger is what effective audit presentation will provide. Do not go to the audit alone and see what the agent says. Get the proper representation and leave with a low assessment. Re opening up an audit is difficult and you may lose your chance the first time around.
5. Negotiate with the IRS the lowest tax settlement.
The ability to negotiate the lowest possible settlement is a skill. Tax attorneys are trained to prevent you from paying more than you need to. A common example that we see is clients offering much more to the IRS to settle their debt through an offer in compromise. Just recently we had a client submit an $18,000 for a $100,000 debt. We withdrew the offer and resubmitted with a $500 offer. The client’s offer was accept and he saved $18000 that he would have otherwise paid. The client’s testimonial is provided in this link. Sometimes during an audit you have to negotiate your deductions because the tax law is nor black or white. There are grey areas. Negotiations also come in handy when an IRS tax attorney is talking to opposing counsel from the IRS or when he is appealing an unfavorable IRS decision.
6. Remove IRS Penalties
IRS tax attorneys are excellent writers. When you owe the IRS heavy penalties and are trying to remove them, the IRS would like to see reasonable cause. This means that you exercised ordinary business care and out of your control you could not stop the penalties from accruing. Showing reasonable cause requires research time and a proper letter that will convey to the IRS why you deserve to have your penalties abated. An IRS tax attorney can provide this.
7. Rapport with IRS Agents
Some, but not all IRS tax attorneys have excellent rapport with local IRS agents. Here at Hillhurst Tax Group our tax attorneys know the IRS agents who audit small businesses. They know how we work and what we are looking for. This creates a business relationship that allows us to negotiate the best possible tax settlement and audit outcome for clients.
8. Stop an IRS Garnishment, Levy, and Tax Lien
Dealing with collections is a specific niche practice. There are many tax attorneys who can help you with tax preparation or tax planning, however trying to stop collection activities is a whole different skill set. An IRS tax attorney can stop a garnishment, levy, and even release a tax lien. They know how to present a hardship to the IRS and paint a picture that shows you cannot afford your current monthly installment agreement. Common example of releasing a lien is when a business owners’ income is affected by the lien. An IRS tax attorney can help prove a hardship.
9. Tax Court Litigation
The ability to represent you in tax court. If the IRS rejects all options at the administrative level, only a qualified tax attorney can defend you in court. He or she has the ability to cross-examine the IRS officers or agents and find any wrongdoing. They can also paint a positive picture to the judge and show good faith. Negotiation with opposing counsel in tax court can effectively lower your tax liability. There have been many cases where IRS tax attorneys have won major cases in court especially favoring business owners.
10. Attorney-Client Privilege & FBAR Representation
And lastly hiring an IRS tax attorney creates an attorney client privilege. The tax attorney cannot testify against you in court unlike a CPA. This allows you the client to disclose everything to your attorney without fear of it being repeated in court. This is important in cases where the government has opened a criminal case against you. FBAR, which stands for foreign bank account reporting, have clients who are potentially at risk of a felony and attorney client privilege is important to avoid any witnesses testifying against you.
There are many other reasons to hire an IRS tax attorney but these are some of the main ones. If you have are lost or don’t know what your options are contact Hillhurst Tax Group at 323-486-3314. We are located in Los Feliz Los Angeles, and serve all of Southern California as well as represent taxpayers in all 50 states. If distance is an issue we can solve your problem via email or fax. Our form on the bottom of this page will let us know more about what you are looking for.