Tax law is complex, and there are several times throughout your life you may want to seek the services of a tax professional.
Here are a few key scenarios where a tax attorney’s knowledge is useful.
1. Setting up estate plans
Tax attorneys are well-equipped to answer your end-of-life financial questions. They can write estate plans, set up monetary gifts and ensure your final wishes are legally enforceable. When writing your will, a tax attorney can help you understand the law and how it may affect your beneficiaries. Involving this type of professional early can help prevent your assets from getting stuck in probate court.
An audit is a stressful time for anyone regardless of whether you are a business owner or a private citizen. Hiring a tax attorney to navigate the ins and outs of the audit is one way to smooth the process. These attorneys understand the system of deductions, credits and exemptions. They can negotiate your bill with the IRS on your behalf.
3. Fraud representation
You will likely need an attorney if you are under scrutiny for tax fraud. The complexity of tax law means you may require someone well-versed in these complexities to represent you. Many attorneys who specialize in tax law are also licensed to represent you in a trial. Misdemeanor or felony tax fraud can carry penalties that include hefty fines and even jail time. The right attorney can help you build a defense in your case.
Rather than trying to understand the thousands of pages of the U.S. tax code yourself, you can use a tax attorney for your pressing tax issues to help ensure you do not miss any essential tax details or requirements.