At What Point Should We Consult A Financial Adviser?

At What Point Should We Consult A Financial Adviser?

When you already have taxes to pay back to the IRS, the last thing you need is another charge. You may be wondering if you really need to engage an attorney to resolve your tax burden, or if there is some other option that will save you thousands of dollars that you likely do not have.

In reality, if you’re ready to put in the time and effort to figure out your tax problem on your own, you probably won’t need an attorney at all. If you’re trying to figure out whether or not you need an Estate Planning Attorney, this article will help.

Table of Contents

Should You Seek The Counsel Of A Tax Lawyer?

If Any Of The Following Is True, You May Not Need The Services Of A Tax Attorney:

  • You have an IRS debt of less than $50,000.
  • There is no evidence that you are either self-employed or the owner of a small business.
  • There are no signs of tax evasion or undeclared income in your case.
  • A Revenue Officer from the Internal Revenue Service has not contacted you.
  • Talking to the Internal Revenue Service is not something that frightens you.
  • You are prepared to invest effort into finding and filling out the appropriate forms.

Given the foregoing, it seems like you have an easy case to solve. You probably won’t need to hire a pricey attorney to help you out of a jam like this. However, effort will be required. In the same way that you save money on any do-it-yourself job, you can expect to save money by investing your own sweat equity.

If Any Of The Following Apply To Your Tax Situation, You Should See A Tax Attorney:

  • The IRS has assessed you a debt of almost $100,000.
  • Your case has been assigned to a Revenue Officer at the IRS,
  • You work for yourself or run a modest enterprise.
  • You’re dealing with a unique or uncommon financial circumstance.
  • To put it bluntly, you fear the Internal Revenue Service and would rather not deal with them on your own.
  • Instead of wasting time and energy attempting to figure it out on your own, you’re willing to pay someone else to do it for you.

If your case has any of the above features, you should consider contacting a tax attorney rather than handling it on your own. Due to the increased complexity of your situation, the IRS will be looking into it more closely. It’s a good idea to hire a tax attorney to help you draught financial documents and handle any negotiations. This could determine whether or not your offer in compromise is accepted, or whether or not you are compensated more than you would have been otherwise.

In The Event That Any Of The Following Apply To You, You Should See A Tax Attorney:

  • There are signs of tax fraud, such as undeclared income.
  • You are hiding money in offshore accounts.
  • The IRS estimates that you have a tax debt of more than $1,000,000.
  • To avoid the Internal Revenue Service seizure, you need to safeguard some very valuable possessions.

In the event that any of the preceding describes your current tax position, you should seriously consider hiring a tax attorney. You have entered the “danger zone” of the Internal Revenue Service’s tax collection efforts and face the real possibility of irreversible, long-term negative effects such as the forced sale of assets, the liquidation of your firm, and criminal tax prosecution. Finding and meeting with a competent tax expert to examine your situation is a bare minimum.

Worry About Tax Debt Relief Companies

You’ve probably already been inundated with mailers from accounting firms, legal practises, and other professionals promising to settle your tax burden for you. You should be wary of the guarantees made by these businesses. There are many dishonest tax resolution services out there waiting to take advantage of you when you are at your most vulnerable. They have a bad reputation for collecting exorbitant fees without truly helping with the tax problem.

Concluding Remarks

The majority of tax issues do not require the services of a tax attorney. However, if you have any doubts about whether or not it is safe for you to handle your tax obligation on your own, you should speak with an experienced tax attorney.