When Do you need a Tax Attorney?

Attorneys who work in the dynamic and specialized world of tax law are called tax attorneys. They are best placed to deal with the technical and legal aspects of tax issues. An attorney can help you in an emergency, but you should consult an attorney to avoid problems beforehand. Tax attorneys need a law degree, also known as a “J.D..” You must be admitted to the state bar to practice. These are just the minimum requirements, and tax attorneys may have specialized tax law experience. At most, they may have a master’s degree in law or accounting, also known as an “LLM.” 

Both accountants and tax attorneys will help you when you need it, but the word “attorney” has a scary ring to it. It means that you are not just fighting the numbers – you are fighting the rules. Tax attorneys can indeed do everything that accountants cannot. However, as long as the services of a council can be more beneficial than those of an accountant, you don’t have to face court battles in your life. Accountants and tax attorneys can help you deal with past problematic events and help you plan the best way forward. Here are a few situations when tax attorneys can be most helpful:

Before a tax audit

Tax attorneys know complex federal tax laws. They can help you develop strategies to avoid overpaying the IRS or being audited. Tax laws can also change after some time. You may want to consult an attorney after an audit has determined how much you owe and whether you have violated the IRS tax code. Because your tax liabilities change over time, you may want to seek additional tax advice to ensure you are still in compliance with IRS requirements. Suppose your tax liability increases during the long-term care period. In that case, you may want to work with your tax attorney to help adjust your plans. 

Before starting a business

If you are starting a business in Los Angeles, you have to answer a lot of legal and unexpected questions. The answers to these questions offer much taxable advice from a  tax attorney in Los Angeles like; what kind of business would be a good idea for you? Should much should you invest? And what should be the taxation code of your organization?

Any business model you choose will have taxation issues. Legal advice can help you set up and manage the responsibilities of your organization, including some tax issues you may not have thought of anyway. If you are running a global business, this will complicate your agreements, tax management, and other legal issues. In such cases, the help of a tax attorney is a must-have.

Before an audit

If you fear being audited, you should also work with a tax attorney. If your tax liabilities increase after a tax audit, the resulting adjustments can help you develop a better financial plan. To ensure that an audit does not happen at the outset, start preparing as early as possible. Review previous years’ tax returns. To ensure that your records are in order, be sure to get an itemized return. If it’s a non-standard return, take the time to organize your IRS paperwork. Suppose you know you will be audited. In that case, you must remember that you are required by law to pay a reasonable amount of tax liability. Your attorney will make sure that you comply with the law when preparing your return. 

After the audit

After the audit, it’s time to clean up your act. The tax authorities may change the tax laws in the future, so you will want to adjust your tax plan now. This includes all the tax deductions and allowances you have previously claimed on your returns. You’ll also want to consider any deductions that have expired or been changed by the IRS. Once you know what tax provisions are still in effect, an attorney can help you reassess your financial situation and work with you to develop a new plan consistent with the new tax laws and your current tax situation. 

Conclusion

Using tax attorneys and accountants is a great way to understand your financial situation better and comply with the law. When you get the right advice from the right person at the right time, you can develop an updated plan that will benefit both you and the tax office. Finally, you can comply with tax rules that protect your money and avoid penalties.