When Do You Need To Hire A Tax Lawyer in CT or NY?
In a world of CPA's, tax preparers, enrolled agents, bookkeepers, brother in laws, and accountants, it can be difficult to understand know when to hire a tax lawyer instead of those “other guys”. Normally, you don't use a tax lawyer to prepare your annual income tax return and they probably cost more, so why would you need a tax attorney's help?
The short answer is that it is often best to use a tax lawyer in two situations. First, if the tax authorities are involved and especially if there is any possibility of a criminal issue. Second, if the tax issue is complex or intertwined with legal issues.
IRS And State Tax Disputes
Well, you may need a tax lawyer if you have a dispute with the Internal Revenue Service or any State Tax Agency. The State Tax Authorities in New York and Connecticut can be particularly severe and difficult to work with. In addition, they are different. So you have different considerations if you live in Wilton CT or Pound Ridge NY.
Many tax issues disputes come from the audit of one or several past tax returns. If the IRS, New York or Connecticut notifies you of an audit, you should hire a tax attorney immediately.
In an audit, your tax lawyer can talk to the IRS, New York or Connecticut, handle your audit and help negotiate a settlement. Having legal counsel helps ensure that your matter is handled properly and you don't overpay as a result of your audit.
In some instances, taxpayers ignore letters and warnings from the IRS because they're scared or don't know how to respond. In others, there has been some criminal activity. In those cases, the IRS may threaten you with criminal charges. Bottom line, if you learn or suspect that you're the target of an IRS criminal investigation, you'll want to avoid any contact with the tax authorities, especially in New York or Connecticut, and hire a tax lawyer immediately.
Your tax attorney can talk to the IRS and get them to back off. He will work with the IRS in to avoid criminal charges and represent you in court if you are charged with a tax law crime. In all instances, he is best positioned to protect your liberty.
Complex Legal Tax Issues
A tax lawyer's help can also be best if you are facing a complex or difficult legal tax situation. This might include instances where you:
- are starting a new company and are trying to decide between the various ways to structure your company
- are selling your company or purchasing a new one
- are starting to do international business
- are purchasing investments with complex tax issues
- are the executor of an estate and need advice regarding whether and how much is owed in estate taxes
- contemplating living overseas
- want to challenge the IRS on a tax decision or appeal an audit
- receive a Collections or Tax Lien Notice
- want to sue the IRS because they won't give you money or refuse to release a lien
- feel you might have committed a tax crime
Lawyers are bound by strict confidentiality rules and have an attorney client priviledge, something other tax advisors are not.
Tax problems are usually a serious matter and must be handled appropriately so it's important to that you've hired the best lawyer for your particular situation.