How a Tax Lawyer Can Help With Tax Problems

Tax attorneys can help if you’re facing tax issues like unpaid taxes or unfiled tax returns. When people face tax problems, they often think that they should reach out to a Certified Public Accountant (CPA), but that’s not the only option – a tax attorney can help you deal with a myriad of tax problems. 

When hiring a tax professional, it’s critical to get help from a pro who has experience resolving the type of tax problem you’re facing, and depending on your tax problem, hiring a tax attorney is your best choice. Read on to learn more about why you should consider contacting a tax lawyer to help with your tax problem and how they can assist you.

Key Takeaways

• Taxpayer representation – Attorneys, CPAs, and enrolled agents can represent taxpayers in front of the IRS.
• Tax lawyers – Helpful for complex tax issues, especially those involving legal questions.
• Tax Court – Only tax lawyers and USTCPs can represent taxpayers in Tax Court.
• Additional help – Tax attorneys can help with unpaid taxes, unfiled returns, tax audits, tax liens, tax levies, and all other tax problems.
• What to expect – The process usually starts with a free consultation. Then, if you decide to move forward, the tax attorney provides you with representation to solve your tax problem.

Why Use a Tax Attorney?

Retaining a tax attorney helps you better understand the extent of your tax challenge, what options are available, and which choice is best for you. That being said, not all tax problems require the services of a tax lawyer. Whether you should hire a tax attorney depends on your issue and your comfort with addressing your own tax problems. 

For instance, if you just owe a few thousand dollars from a personal income tax return (and there’s no doubt that you owe this money), you might not need a tax lawyer. Instead, you can just set up an installment agreement (payment plan) on your own.

As your situation becomes more complicated, however, a tax attorney becomes more indispensable. Say for example, that you have years of unfiled returns, tens of thousands in debt, or tax issues that are threatening your business. In these cases, a lawyer can help you assess the situation, find a resolution, and minimize the damage as much as possible. They can also best protect your legal rights when negotiating with the IRS.

For example, you should hire an attorney if you’re disputing the amount of your tax bill because you’re challenging the legal basis for the tax. Or you’re facing criminal or civil penalties for tax fraud or evasion. In both of these scenarios, an experienced tax lawyer can be critical.

What About Hiring a CPA or EA?

When it comes to resolving most tax problems, attorneys, Certified Public Accountants, and enrolled agents can usually represent you effectively. But who should you choose? Many of their services overlap, but these professionals often differ greatly in education requirements, experience, and the type of services they provide.

For instance, if you need to go to Tax Court or are dealing with a legal question, you likely need a tax attorney. They have formal training and experience representing clients in Tax Court and analyzing legal issues. Note that tax attorneys are generally the only pros who can represent you in Tax Court, but there are a small number of CPAs and enrolled agents who can also represent you in Tax Court because they have passed a test to become US Tax Court Practitioners (USTCPs).

Tax attorneys are also the best choice if you’re dealing with potential criminal issues or if you need to make a voluntary disclosure about possible criminal actions. Attorneys may be able to offer attorney-client privilege, which you cannot get with a CPA or enrolled agent. 

In contrast, if you’re just trying to make arrangements to settle your tax debt with the IRS, then an EA might suffice. Then there are tax questions that deal less with tax law and more with business and financial planning. In this situation, a CPA might be more appropriate.

To get more insights, check out our guide on tax attorneys vs. CPAs vs. enrolled agents.

Bottom line – the single most important factor when deciding who to hire is professional experience with your specific tax problem. 

How a Tax Lawyer Can Help You

Tax attorneys can usually help with the vast majority of tax issues that most taxpayers face. The following is a brief overview of how a tax lawyer can potentially help you if you’re their client:

• Setting up payment plans or installment agreements.
• Settling your tax debt for less than what you owe with an offer in compromise (OIC).
• Getting through a tax audit or helping you take steps to avoid one.
• Reducing a tax balance through penalty abatement.
• Avoiding or stopping a wage garnishment or bank levy.
• Requesting Currently Not Collectible (CNC) Status to temporarily stop IRS back tax collection efforts.
• Catching up on past-due tax returns and dealing with a substitute for return (SFR).
• Releasing a tax lien.
• Negotiating with the IRS
• Resolving state-tax issues.

Can Attorneys Negotiate With the IRS?

Yes, tax attorneys can represent you in front of the IRS, and they can negotiate with the IRS over several different types of issues, including the following:

• Audits – Tax attorneys can explain your position to IRS auditors, using their knowledge of the tax law to support positions you took on your tax return.
• Approval for payment plans – The IRS requires financial disclosures for certain types of payment plans – for instance, if you want to make payments on a significant amount of debt, need more than six years to pay, or owe business taxes. Tax attorneys can help get your proposed plan accepted. 
• Offer in compromise – If you want to settle taxes for less than owed, an attorney can explain your position and help you get the most favorable terms possible for your settlement. 
• Innocent spouse relief – In cases where you apply for innocent spouse relief, an attorney can argue that you did not know about your spouse’s understatement of income and that you had no reason to know. 

These are just a few of the ways tax attorneys can negotiate on your behalf. When you talk with an attorney about your specific concerns, they’ll be able to tell you how they can help you.

What Is a Tax Settlement Attorney?

This is just a phrase used in the tax relief industry to refer to an attorney who can help you get a settlement. There is no special designation called a tax settlement attorney. It’s also important to note that while settlements are possible, they are based on income and assets and have strict application requirements.

Meet the Attorneys at W Tax Attorney

When you hire the W Tax Group to help with your tax problems, you can rest assured that an experienced professional will be running point on your case. 

Lyle Warren, Attorney, President, and COO, has over 20 years of legal experience, with over a decade in the tax resolution space. Stephen A. Weisberg, Lead Attorney, offers experience and a commitment to client satisfaction. The rest of our team includes resolution specialists and accountants. We’re based in Michigan, but our Southfield tax attorneys can help with any state or federal tax problems.

Contact an Experienced IRS Attorney Today

If you owe back taxes to the Internal Revenue Service, are behind on filing tax returns, or have another tax situation you need help with, contact a lawyer who can help you put this stress behind you. No one wants to be scared every time their phone rings or they have to check their mail. 

It’s scary when the IRS has you in its sights, and there’s no way to get out of the line of fire except by addressing and handling your back taxes. Depending on your tax problem, hiring a tax attorney might be your best option. To find out more, contact the W Tax Group to schedule a free consultation.

Lead Tax Attorney at The W Tax Group

Stephen A Weisberg