When Do You Need a Tax Attorney?

October 13, 2010

A tax attorney is a relatively specialized thing, and not everyone is going to need to talk to one in their lifetimes. That being said, if you’re in a situation when you do need a tax attorney, you want to make sure you have access to one that’s reliable and knowledgeable. Knowing whether or not you need a tax attorney is the first step in finding the right one.

Here are some scenarios in which you might benefit from the advice or services of a tax attorney:

  • You’re starting a small business. Getting a business up and running can be relatively simple, from a tax perspective. For example, if you’re starting a computer consulting business, you don’t have a lot of capital investments to make or inventory to purchase. On the other hand, if you’re starting a carpet cleaning service, things might be a little more complex. In any case, an initial consultation with a tax attorney might be valuable.
  • You are facing complex tax scenarios. Maybe you’ve taken money from a 401(k), bought a new house, worked some side jobs for cash and even moved from one state to another all within a single tax year. Chances are pretty good you’re going to have a complex tax scenario. A tax attorney can help verify that you’re complying with all of the tax laws, both at the federal level and in the states you’ve resided in.
  • You’re being audited. When the IRS sets its sights on you, you need to be ready for whatever comes. A tax attorney can help you to prepare the kinds of evidence you’re going to need in order to face any trouble with the auditing process, as well as appeal any decision that might be made by the IRS in regard to your tax situation.

There are other scenarios in which a tax attorney can be helpful, as well. These are just some of the most common ones that people have come across over the years.

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