Filing taxes for businesses and individuals can be a long and complicated process. Dealing with taxes can be stressful, but handling the fallout associated with an audit, a late filing, or an unpaid balance can be worse.
Everyone can’t be an expert on taxes, but luckily you can hire someone that is.
If you’re having trouble with back tax balances, unfiled returns, or want to ensure that next year’s filing goes well, you need to hire a tax attorney.
Six Reasons To Hire A Tax Attorney
Whether you’re a business owner with outstanding payroll taxes, or an individual struggling to pay back tax debt, having the help of a tax attorney can do wonders for you.
You may wonder if an attorney is worth the cost, but if anything, most people can’t afford to not have an attorney.
Curious about what a tax attorney can do for you? After you see how an attorney can help you, you’ll wonder why it took you so long to find one of your own.
Don’t Miss Out On Deductions
An audit isn’t the end of the world. You may find that it gives you a second chance to file and deduct things you may have missed the first time you filed.
A tax accountant can help you come up with a comprehensive list of deductions, but an attorney can be just as helpful.
An attorney will know the ins and outs of making claims. They can help you find things you may have glossed over or may find extra things to deduct when they’re going through receipts and statements. Furthermore, a tax attorney will represent you before the IRS and help you navigate the potential pitfalls of an audit.
Get Help With An Audit
Tax audits have become rarer as the years have passed, but when they do occur they can be very troublesome.
The IRS may choose to audit you for a variety of reasons, but every audit has the same defining trait: they’re very long and tedious to deal with.
If you’re audited by the IRS you’ll have to compile a large number of documents for the IRS. This goes far beyond tax returns. You’ll have to provide paystubs, receipts, and other documents that may not have crossed your mind.
Audits take a long time to process, but the process gets even longer and more complicated if you happen to forget to submit something important.
You’ll have to start the process all over again, or could make things worse for yourself by getting additional fees and penalties.
A tax attorney can be helpful during the auditing process.
They know everything there is to know about auditing and can walk you through the process from start to finish. They’ll be able to ensure that you’re submitting the right information and can help you gather documents.
Navigate The Non-Collectable Process
If you owe back taxes you are unable to pay, you may qualify to have your account placed into Currently Non-Collectible status by the IRS.
Some taxpayers may owe a lot of money but may not qualify for an Offer in Compromise with the IRS. They may also find that they can’t afford to make regular monthly payments on the tax debt they owe.
If you find yourself in this situation, you may qualify for the ‘currently non-collectible status’ to get temporary relief on back taxes.
While you’re in non-collectible status the IRS will not pursue collection action against you in the form of levies, wage garnishments, and other debt collection methods.
Being put into a non-collectible status is beneficial for a taxpayer but navigating that process can be difficult and time consuming.
A tax attorney can help you see if you qualify for a currently non-collectible status. After they determine your eligibility, they’ll represent you before the IRS to have your account placed into this status.
Establish A Payment Plan
When you do owe money to the IRS, you may be eager to take whatever payment option the IRS offers you, even if it is not something you can actually afford.
Most people don’t know that the IRS offers multiple different payment plan options, based on both the amount of back taxes you owe, and your ability to pay.
A tax attorney can help you figure out a payment plan that makes sense for your budget.
They can help ensure that your payment plan fits your ability to pay and does not cause a financial hardship for you and your family.
Get Great Backup
You may have a revenue officer assigned to your case with the IRS. As soon as you verify that you’re working with a legitimate officer, you need to contact a tax attorney.
Revenue officers can contact you and have the authority to go to your house, business, or office. They have the authority to give out wage garnishments, assign levies, and can seize property. They may also contact third parties, including your clients and customers.
Revenue officers can be aggressive in their pursuit. Having a tax attorney can help ensure that you’re protected during the process. They’ll ensure that the officer uses proper procedures and can help you reach a resolution.
Fight Levies And Wage Garnishments
Levies and wage garnishments are often used by the IRS as a means of collecting an outstanding tax debt. When they are issued, they have a very negative impact on your job and finances.
The IRS may choose to attach a levy to all the funds in your bank account. The wage garnishment they apply could leave you with little to no money to pay for basic living expenses.
In some situations, the IRS may choose to seize your possessions to cover your tax debt. This could include the loss of homes, vehicles, or expensive possessions.
Getting a levy or wage garnishment can be scary, but in certain situations, you may be able to have the levy or wage garnishment released.
An experienced attorney may be able to help get a release on your bank account or paycheck. They may be able to show the IRS that their levy or garnishment puts too much financial stress on you. They can then assist you with setting up resolution on your account so you do not receive levies or wage garnishments in the future.
Now that you know how a tax attorney can make your life easier, you’re ready to find one of your own.
If you’re ready to take control of your taxes, contact us today so we can give you the professional help you need.
In the meantime, take time to educate yourself on tax law. Our blog is full of other useful content that can teach you everything you need to know about taxes in Michigan.