A tax attorney can be a valuable investment in certain situations. Because they help people avoid losing money in a tax dispute, their services frequently provide a good return on investment.
Although many tax attorneys have academic and professional backgrounds in accounting, advanced mathematics skills rarely factor into their professional duties. Their primary responsibilities revolve around legal technicalities and case analysis.
Tax Planning
A tax attorney can yield a positive return on investment when they help clients minimize their tax liability. They are also skilled at negotiating with the IRS, often getting better client settlements than they would get along.
Aside from assisting individuals in tax disputes, they can help with complex business transactions, including mergers and acquisitions. To guarantee that their assets are distributed according to their wishes, they can assist clients in creating estate plans and provide advice on foreign tax regulations. They can even counsel nonprofit organizations on how to comply with tax rules and obtain tax-exempt status.
Tax attorneys at Underhill Law are certified legal experts with a comprehensive knowledge of federal tax codes and their practical applications. They also frequently expand this expertise to state tax codes relevant to their practice locations. They are also skilled at communicating with the IRS on behalf of their clients, ensuring sensitive financial information is kept confidential.
Tax Litigation
In many circumstances, a tax attorney can be a handy resource. A tax lawyer can help you maximize deductions and credits while avoiding penalties and fees. In addition, a tax attorney can help you navigate IRS investigations or tax litigation.
The complexities of the federal tax code and the various legal options available can be overwhelming for many individuals. Moreover, the IRS constantly changes its policies, procedures, and practices. As such, even a minor disagreement with the agency can lead to significant financial and emotional strain.
By contrast, skilled tax attorneys can provide a substantial return on investment by handling complex or high-risk disputes that would otherwise be costly. A tax attorney can also assist you with resolving disputes outside of the courts through alternative dispute resolution (ADR). They can also bargain on your behalf with the IRS.
Tax Settlements
Many individuals rely on tax attorneys to negotiate different types of settlements with the IRS. These strategic settlements reduce financial obligations and prevent dire outcomes, offering a lifeline in times of hardship.
Aside from helping a person resolve immediate tax concerns, a qualified lawyer can assist with long-term issues and ongoing support. Moreover, these professionals can guide individuals through the tax code and explain how it applies to their situation.
A tax attorney will likely charge several hundred dollars for their services. While some businesses charge a set rate, others bill by the hour. Hourly billing enables clients to control spending by only paying for their representation when necessary.
A qualified tax attorney can help individuals with various IRS relief options, including an offer in compromise (OIC). This type of settlement allows the taxpayer to settle a debt for less than what is owed. The IRS considers a person’s current financial status, extenuating circumstances, and applicable tax regulations to determine whether to grant this settlement.
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Tax Audits
The IRS audits individuals and businesses to ensure compliance with tax laws. The agency will review documents and interview you and other employees during an audit. Depending on the complexity of your case, an audit may last one day to a week or longer. If the auditor spots a mistake, you may be asked to send additional documentation or pay taxes that are owed.
A tax attorney can help you prepare for an IRS audit and represent you in negotiations with the agency. They can also manage liens, negotiate penalties, and facilitate wage garnishment resolutions.
While it is possible for an individual to navigate the complexities of tax law independently, hiring a professional often yields a positive return on investment. Tax attorneys have graduated from law school, obtained their license to practice, and can serve as an intermediary between you and the IRS. Additionally, they may assist you in minimizing credits and deductions, avoiding expensive errors, and resolving delinquent account concerns before they become severe legal difficulties.
