Did you know that the overall income for the U.S. federal government tax revenue is projected to reach $4.71 trillion in 2023?

When you own a small business, you’re faced with many tax decisions. What tax deductions can you take on your business income tax return? Which tax credits are available for you to use?

You need to know that you’re following all the laws and being as profitable as possible for your small business. That’s what tax law does for your business.

The problem is that some tax issues are too complex for you to resolve. You need to hire a tax attorney. You might ask, “Why do I need a tax attorney?” Keep reading to learn when you should look for legal tax representation.

What Is a Tax Attorney?

A tax attorney is a lawyer with specialized knowledge of taxes and tax law. A tax attorney specializes in tax issues, such as preparing and filing tax returns, representing taxpayers before the IRS, and helping clients negotiate IRS audits and settlements.

Know When to Seek Professional Help

Understanding taxes is key to avoiding costly mistakes, but sometimes professional help is necessary. It’s essential to know when to hire a tax attorney for the most complex tax issues — especially if it involves potential violations or disputes.

Tax attorneys should be consulted when dealing with legal issues such as the necessity for filing for bankruptcy, tax delinquency, an IRS audit, failure to file tax returns, and criminal tax evasion. Additionally, a tax attorney can assist with the planning and filing of tax returns, including accurately determining deductions and finding ways to reduce taxes legally.

Other times when a tax attorney can be beneficial are dealing with the Internal Revenue Service dispute, offshore tax compliance, resolving any tax issues, complex international tax matters, and overall tax planning. It is critical to get professional help when needed, but also to be reasonable with tax-related decisions.

Evaluating if You Need a Tax Attorney

Generally, you should hire a tax attorney if you receive an audit notice from the IRS, have income from out of the country, face criminal charges, or have a complicated and extensive back payroll tax resolution.

Tax attorneys are trained to deal with the complicated legal landscape of U.S. tax laws. They can represent you during an audit, help you with IRS collections and appeals, negotiate payment plans, and even provide guidance on preventing future tax debt.

Additionally, tax attorneys can provide sound legal advice on complex tax issues such as business and estate taxes, offshore tax avoidance, and mergers and acquisitions.

It is vital that no matter the size of the tax issue, you are aware of all available options and are comfortable with the legal advice that you receive from an experienced tax attorney.

Understanding How and When to Hire a Tax Attorney

Ultimately, seeking a consultation with a reliable tax attorney with a good reputation can give you confidence and expertise in navigating tax issues.

Contact a tax lawyer if you need expert advice or are facing a severe tax controversy. Doing so may provide positive results and peace of mind.

Check out some of our other articles for more information.