Why Should You Hire a Tax Attorney When You Owe Back Taxes

by | Mar 19, 2023

If you owe a significant amount of tax debt to the Internal Revenue Service (IRS), it is essential to consider seeking assistance from a tax attorney. The thought of owing back taxes can be overwhelming, and the IRS can be intimidating to deal with. However, a tax attorney can ease this burden and help you resolve your tax debt effectively. In this blog post, we will explore why you should hire a tax attorney to handle your tax debt.


  1. Expertise in Tax Law


One of the primary reasons why you should hire a tax attorney to handle your tax debt is their expertise in tax law. Tax lawyers have specialized knowledge and training on tax laws and regulations, and they can help you navigate the complexities of the tax system. They also keep up to date with changes in tax laws and regulations to ensure they provide clients with accurate and up-to-date advice.


  1. Communication with the IRS 


The IRS can be challenging to communicate with, and attempting to do so on your own may result in confusion and frustration. A tax attorney can act as your intermediary with the IRS, drafting and submitting correspondence and documents on your behalf. They can also represent you in IRS negotiations, hearings, and other proceedings, ensuring that your interests are protected.


  1. Negotiations with the IRS 


Tax attorneys are skilled negotiators and can help negotiate with the IRS to reduce the amount of tax debt and penalties owed. They can evaluate your financial circumstances and work with the IRS to develop a payment plan that is manageable based on your financial situation.


  1. Protection of Legal Rights 


When dealing with the IRS, you have legal rights that should not be violated. Tax attorneys are knowledgeable of your legal rights and can ensure that your interests and rights are protected during the collection process. They can also advise you on the various legal options you have available to resolve your tax debt.


  1. Avoiding Criminal Charges 


While rare, criminal charges can arise from tax debt issues. The IRS takes tax evasion and fraud very seriously, and the consequences of these charges can be severe. Tax attorneys can offer legal advice to ensure that your actions are compliant with tax law and help reduce the likelihood of criminal charges being filed against you.


  1. Experience in Tax Settlement 


Tax attorneys have experience and expertise in negotiating tax settlements with the IRS. They can help you explore options such as Offers in Compromise, Installment Agreements, and Innocent Spouse Relief. These options can help you settle your tax debt and reduce penalties and interest.


  1. Cost-Effective 


While hiring a tax attorney may seem expensive, it may be more cost-effective in the long run. A tax attorney can help resolve your tax debt efficiently and effectively, saving you time, money, and stress. Moreover, tax attorneys can help you navigate the tax code and minimize your tax burden in the future.


In conclusion, when it comes to resolving tax debt, hiring a tax attorney is the best course of action. Tax attorneys have expertise in tax law, understand the complicated tax system, can communicate with the IRS effectively, can negotiate with the IRS, can protect your legal rights, can help avoid criminal charges, have experience with tax settlement options, and can be more cost-effective in the long run. Therefore, if you find yourself owing back taxes, it’s in your best interest to consult a tax attorney to help manage your tax debt successfully.

Need Tax Advice

Don’t hesitate to contact your Minnesota Tax Attorneys at Wildes at Law for any tax planning, business, tax preparation and other tax services.