How a Tax Lawyer Can Help With Tax Problems

Tax attorneys can help if you’re facing tax issues like unpaid taxes, unfiled tax returns, or other tax problems. While many people initially take a DIY approach to their IRS tax concerns, confusion regarding laws, timelines, and limitations can easily hurt their case. Mistakes can put you at risk of penalties, aggressive collection actions, and the loss of appeal options.

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

• Attorneys, CPAs, and enrolled agents can represent taxpayers in front of the IRS.
• Tax lawyers are helpful for complex tax issues, especially those that involve multiple tax years or enforced collection.
• Only tax lawyers and USTCPs can represent taxpayers in Tax Court.
• Tax attorneys can help with unpaid taxes, unfiled returns, tax audits, tax liens, tax levies, and all other tax problems.
• Hiring a tax attorney 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. Read more about what to expect during the initial consultation.

Why Use a Tax Attorney?

A tax attorney protects your interests in front of the IRS. They know how to communicate with IRS employees effectively, which forms to file, and how to work the system to your advantage. They also offer continuity through your tax problems, as they can take your case all the way to Tax Court, if needed. 

When you hire a tax attorney, they’ll look over your problem, explain the options to you, and help you select the best path forward for your unique situation – whether you’re facing individual or business tax problems. 

DIY Vs Hiring a Tax Attorney

Some taxpayers can handle straightforward matters themselves. 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.

But tax problems often involve more than just one balance due. Unfiled returns, large tax debts, business tax exposure, wage garnishments, and aggressive collection activity can quickly take over your life and leave you overwhelmed. In these situations, a tax attorney can quickly evaluate what’s going on and help you develop a plan.

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. If you’re facing criminal or civil penalties for tax fraud or evasion, an attorney can take control of the situation from the very beginning. In both of these scenarios, an experienced tax lawyer can be critical.

DIY Vs Hiring a Tax Attorney

Many tax problems can be resolved without legal action–but attorney oversight adds protection when disputes occur, and enforcement escalates.

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? Each of these professionals play an important role in tax matters, 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 can provide the guidance you need. Then there are tax questions that deal less with tax law and more with business and financial planning or year-round compliance. In this situation, a CPA might be more appropriate.

Curious about the differences between tax professionals? Check out our guide on tax attorneys vs. CPAs vs. enrolled agents.

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. 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.

Frequently Asked Questions

Do I really need an IRS lawyer, or can I handle this myself?

There are some issues that you can handle on your own, especially if your debt is small and only spans one or two tax years. However, if you have a more complex tax issue, are receiving increasingly urgent IRS notices, or want to dispute what they say you owe, an attorney is highly recommended.

What can a tax attorney do that I can’t do on my own?

Tax attorneys have extensive experience negotiating directly with the IRS, strategizing to find the right relief option for each tax situation, analyzing a taxpayer’s legal risk, appealing IRS decisions, and protecting taxpayers from aggressive collection efforts.

Can a tax attorney negotiate with the IRS on my behalf?

Yes. A tax attorney can negotiate with the IRS directly, so you don’t have to speak directly with the IRS at all.

How much does a tax attorney cost?

Pricing varies from attorney to attorney. However, the right tax lawyer for you will be upfront and transparent about their pricing, explain why certain resolution options cost more than others, and consider your financial needs when suggesting solutions.

How does pricing work at W Tax Group?

The process starts with a consultation, where we learn more about your tax situation and goals. From there, we move on to a more in-depth investigation of your IRS transcript, financial situation, pending collection actions, and previous tax compliance. Then, we suggest resolution options. We present you with service options and fee information upfront. You don’t have to worry about hourly billing or open-ended retainers that always leave you wondering how much your tax problems are costing you.

Why do some tax attorneys charge hourly while others charge a flat fee?

Each attorney has their own pricing structure, with some preferring to charge as they go as a tax situation develops. We prefer to provide clients with a transparent and predictable expense that they can budget for.

Are tax attorneys worth it for smaller tax debts?

It depends on how old the debt is, what notices you’ve received from the IRS, and how comfortable you are addressing the problem on your own. If you know you’ll put off reaching out to the IRS to find solutions until it’s too late, hiring an attorney can be worth it even if your debt is small.

Can I start without an attorney and add one later if things get worse?

You can choose to go this route–but note that there’s always a risk that you’ll make the situation worse via errors, missed deadlines, or giving the IRS more information than they need. At that point, it may actually be harder for an attorney to resolve your issue than it would have been if you’d consulted them from the beginning.

What happens during the initial consultation?

During your initial consultation, we get a broad overview of your tax situation, any steps you’ve taken to address it, and what your ideal outcome would be. This is also your chance to find out how we work and decide whether or not we’re a good fit. We’ll look over any documents you have and tell you what our initial thoughts are. From there, you can decide whether or not to retain us, at which point we begin a more thorough investigation.

How long does tax resolution usually take?

It depends entirely on the specifics of your situation. A payment plan can be arranged in a matter of days or weeks, while an offer in compromise may take six months to a year (or even more) before you receive a decision from the IRS. During your initial consultation, we’ll provide a reasonable timeline.

Lead Tax Attorney at The W Tax Group

Stephen A Weisberg