Why Ignoring The IRS Is A Costly Mistake And How To Hire The Right Attorney

The IRS can be like a dog with a bone, and receiving a tap on the shoulder from them can be an intimidating experience. Most IRS investigations relate to a previously filed tax return, but many of us will ignore warning letters from them, perhaps because we find the issues too complex or find the IRS scary to deal with. This however, is a bad move and can lead to further penalties for missed deadlines or the threat of criminal charges for tax evasion. So the only sensible course of action is to face up to matters and hire competent advisors if need be.

Attorney or CPA

If your affairs are relatively straightforward, you may be able to deal with them yourself or hire a Certified Public Accountant to deal with it on your behalf. You may qualify for the Offer in Compromise program, where you agree to pay less than is due at a rate you can afford, provided you can prove your circumstances are exceptional. The important thing with the IRS is to show willing and open lines of communication.

If, however, things are more complex, it may be better to hire a tax attorney, who will be familiar with the intricacies of the ever-changing tax laws and codes. They can contact the IRS on your behalf, show that you are taking matters seriously, make sure you are not paying too much and put up a fight if need be. Another reason to appoint an attorney is that they cannot reveal any of the information you have told them in Court, whereas a CPA can be called to give evidence against you. If you are already facing charges for tax evasion or fraud, then you will definitely need an attorney.

Finding an Attorney

It goes with out saying, that because of the complexity of the issues involved you will need a specialist, so they can make things better, not worse. The attorney needs to be an expert in this field. You need to meet with them and ask questions about his caseload, experience and success rate. Ask for references from other clients and check that they are in good standing with their local bar association, that they are insured for negligence and that their firm is financially sound.

Fees

Lawyers will normally be paid on an hourly rate and you will need to find out what this rate will be, their estimate of overall costs and how and when any changes will be notified to you. Some will offer a free first consultation and if you do appoint them will ask for some monies up front to cover initial costs. If they ask for all the estimated fees up front, then find someone else.