A letter from the IRS spurs panic within the hearts of most Americans. No one wants to deal with red tape, long waits, and confusing jargon only to be told they owe back taxes they can’t pay.
It is hard to know, however, when it makes sense to hire a tax lawyer rather than just bite the bullet and do it yourself. Here are three times it is best to hire a tax lawyer.
1. If the IRS is Ignoring Your Attempts to Resolve the Situation. Tax issues must be resolved within specific time frames, and if your attempts to correct the situation yourself fail, you should hire a tax lawyer to act on your behalf. An attorney has more experience dealing with the IRS bureaucracy and will know how to approach them in a way that will get their attention.
2. If You Want to Negotiate an Offer In Compromise. An Offer in Compromise is when the IRS accepts an amount that is less than the total you owe as a settlement in full for back taxes. While there are self-service forms that will allow you to do-it-yourself, an experienced tax attorney can help exhibit your unique financial story so as to have a better chance that the IRS accepts your offer.
3. If You Can’t Afford the Payment Plan Offered By the IRS. The more money that you owe the IRS, the higher the installment payment they will ask you to make. If the proposed payment will be a significant pinch to your cash flow, a tax lawyer may be able to present your financial situation in a way that results in a much lower monthly installment.
Request an initial consultation to discuss your tax problems to see if a professional tax lawyer can help your situation.