When filing tax returns, there are chances that we might hit some roadblocks. While you can rope in an accountant to get it sorted, if there are tax-related issues that you need to deal with the IRS (Internal Revenue Service), it’s advisable to hire a lawyer. A few of the seemingly small blunders can lead to bigger problems with the IRS. Here are four main reasons why you need a lawyer for your tax return.
What is a tax return?
When you earn income through wages, business profits, interest, dividends, or a few other means, you are expected to file a tax return. A tax return is a form an individual needs to file with a tax authority. This form will have details of income, expenses, personal details, and other related tax information. These tax returns are filed every year in most of the countries. In the USA, it is filed with either the IRS or with the state or local tax collection agency.
How can a lawyer help you with tax return
Expertise in Tax Law and Regulations
Tax laws and regulations might be overwhelming for many and it’s common. This is where an expert comes into the picture. A lawyer will be well aware of the laws and can help you figure out ways to file a proper tax return and deal with any related issues if necessary in the future. Since they know the pattern, they can review legal documents and tax return forms and information for accuracy. They can provide legal advice and financial strategies to ensure you manage your finances better and maintain compliance with the IRS. Their expertise in tax also comes in handy as they know the ways to minimize taxes through several deductions and alterations.
Dealing With Complex Financial Situations
We may have filed the taxes with proper documentation but what if there is a mistake? If the tax owed is more, do you know all the methods to minimize the taxes? When such a complex financial situation arises, a tax lawyer will guide you. Even if there is a need to approach the IRS for any penalty charges, the lawyer can take care of the legal proceedings on behalf of you, easing your burden and stress.
Legal Privilege and Confidentiality
One of the major reasons why people avoid seeking legal support and advice is because they aren’t comfortable sharing their finances. However, there is no need to worry because the communication between your lawyer and you will be protected by legal privilege and confidentiality. This attorney-client privilege also ensures the lawyer protects the tax preparation information and can’t testify even during any IRS investigation. It is always good to seek the help of a tax return lawyer.
Mitigating Legal Risks and Penalties
Tax risk management is the process of identifying and mitigating tax-related risks. While individuals can try and rectify the errors after penalties are issued, a tax lawyer will help mitigate the risks beforehand, ensuring the filing complies with tax laws. Even if there are any issues, a tax lawyer will help you navigate through the legal procedures like filing complaints, disclosing any mistake through a volunteer disclosure program, making appeals, etc.
Hire a tax attorney when it comes to tax return
The basic need for a tax attorney is to ensure your tax return is filed on time, meeting all the requirements of the IRS. A small mistake could prove to be costly, leading to fines and other issues that you may have to deal with the IRS. It is advisable to hire an experienced tax attorney so that you can rest assured that the taxes are filed on time, accuracy double-checked and all possible deductions and mitigation measures are in place.
