In many cases, people can file their own taxes or use a run-of-the-mill tax preparation service to do it for them. The taxes get paid and filed, and if you have over-paid that year, you get a refund. It's simple — or it should be. Sometimes, things go awry or get a bit more complicated, and in cases like these, you typically need to call a tax attorney and hire them for their services. Here are four specific times when you really need to hire a tax attorney.
1. You're getting audited.
If you received a notification in the mail that indicates you are facing an audit, you will need to contact a tax attorney. The auditing process can be very involved. Sometimes the IRS will only want some paperwork to verify certain portions of your tax return, but other times, they may need to visit your home, listen to you answer questions in person, and so forth. Your tax attorney can help you navigate all of this. They will help you provide the right information so that you hopefully do not end up having to pay more taxes than necessary.
2. You sold a business.
If you sold a business during the last tax year, you will want a tax attorney to at least review your tax return before you send it in. A major transaction like this needs to be recorded in the right way, and you will need to make sure all of the paperwork is filled out properly to avoid an audit.
3. You're paying back taxes.
Did you forget to file your taxes for a few years? Or maybe you recently found out that you underpaid, and now you're going to start paying your back taxes. There is usually a better payback plan than the one the IRS initially proposes, but you will need a tax attorney to communicate with the IRS and make such plans on your behalf.
4. You inherited a large sum of money.
Paying taxes on an inheritance gets really complicated. The amount you pay depends on whether the money was in a trust, how much you inherited, when you inherited it, and so many other factors. A tax attorney can ensure you pay the right amount so you don't later end up owing a large amount of back taxes on the inheritance.
To learn more, talk with a tax attorney.