Here are some tips to help you pick the right person to fight the IRS and settle you tax debt.
Picking Someone to Help You Fight the IRS
If you find you owe the government money, your first instinct may be to fight the IRS alone. Everyone's situation is different, but it's rare that you won't save money by using a tax lawyer, enrolled agent, or a qualified CPA to represent you.
A Tax Lawyer is Worth the Expense
If you feel a tax pro is too expensive you may decide to represent yourself. Don't. This is a dangerous course to take for a number of reasons. Tax law is extremely complicated. The number of things that can go wrong is enormous.
Many taxpayers get professional help after they've attempted to represent themselves. In those cases, the bulk of the work consists of undoing the damage the taxpayer has done.
Congress gave taxpayers new procedural protections in 1998. However, if you represent yourself, you have no way of forcing the IRS to respect those protections. A tax lawyer would know how to help you make the most of them.
Save Yourself the Trouble
Taxpayers are likely to do more harm than good if there is any gray area between them and the IRS. The stakes are numerous and complex. You could make a mistake and not even know it until after you find yourself with more serious problems than those you were attempting to fix.
As the saying goes, "Anything you say can and will be used against you in a court of law," so it goes with the IRS.
With the help of a tax professional you won't have to speak to the IRS at all.
Every conversation you have with IRS personnel is saved in one form or another. Taxpayers can sometimes make seemingly innocent statements that IRS personnel interpret very differently. Any false statement to any federal official of any kind, even though not made under oath, can result in criminal indictment.
How to Find the Right Tax Attorney
When seeking a tax attorney, find one with specialized education, such as an LL.M. in taxation. References, such as other lawyers, judges or peer-reviewed ratings like Martindale-Hubbell, will also help your decision. Good tax attorneys will also have years of litigation experience.
Other professionals who can represent you in tax court (and perhaps charge less for their services) include CPAs and enrolled agents (EAs) who have passed a rigorous Tax Court Exam. CPAs are highly trained accountants with exceptional experience and education. Many choose to specialize in tax issues. EAs are experienced tax pros who have extensive tax experience and / or pass an Enrolled Agent Exam. EAs are granted their right to practice by the federal government.
It matters less who you choose than it does that you do choose someone. Those who try to act as their own tax specialists will truly have fools for clients.
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