One of the most important decisions you have to make this year as a business owner is of choosing a tax attorney. Are you confused about how to find the right one? Worry not! In this article, we will talk about what to consider when hiring them so that you can be sure that you’ll get your money’s worth.
The Difference Between Tax Attorneys and Accountants
There are a few key differences between tax attorneys and accountants that you should be aware of before deciding on which professional to hire. Tax attorneys are licensed to practice law, while accountants are not. This means that tax attorneys have a more in-depth understanding of the tax code and can provide more comprehensive legal advice than accountants.
Another difference between the two professions is that tax attorneys typically have more experience dealing with the IRS and other government agencies. If you are facing an audit or other legal issue with the IRS, a tax attorney will likely be better equipped to handle it than an accountant.
It’s important to note that tax attorneys usually charge higher fees than accountants. This is because their services are generally more complex and time-consuming. If you’re on a tight budget, an accountant may be a better option for you.
How to Find a Tax Attorney
There are a few things you should keep in mind when looking for a tax attorney. First, you should make sure the attorney is licensed to practice in your state. You can check this by contacting your state’s bar association.
Second, you should ask the attorney for references. These can be from past clients or other attorneys. Third, you should check the attorney’s credentials. The American Bar Association’s website is a good place to start. Finally, you should meet with the attorney to discuss your case and see if you feel comfortable working with them.
When To Hire a Tax Attorney
There are a few key times when it makes sense to hire a tax attorney rather than going it alone or using a tax preparation service. If you own your own business, are self-employed, or have investments in addition to a regular job, you may need the help of a tax attorney at some point. Here are four specific times when you should consider hiring a tax attorney:
1. When You Need to File an Amended Tax Return
If you’ve already filed your taxes but realized that you made a mistake or omitted some information, you’ll need to file an amended return. This can be a complex process, and it’s best to have an experienced tax attorney on your side.
2. When You’re Being Audited by the IRS
Nobody likes getting audited, but it does happen from time to time. If you find yourself in this situation, you must have an experienced tax attorney representing you. They can help you navigate the audit process and minimize any potential penalties or fines.
3. When You Owe Back Taxes
If you owe back taxes, the IRS debt forgiveness program can come after your assets (like your bank account or your home) to satisfy the debt. A tax attorney can help negotiate with the IRS on your behalf and come up with a payment plan that works for both parties.