How Tax Attorneys Can Help You Deal With the IRS
Because the majority (72%) of evaded taxes are income taxes, the IRS is very interested in ensuring that every taxpayer upholds their obligations by filing and paying their fair share of taxes on time. When you fall behind on your returns, struggle to identify how to file your taxes properly, or encounter another unusual tax circumstance, you might benefit from consulting with a tax attorney like McLaud Law P.C. in Rochester, NY.
Typically, consulting with a tax expert gives you a huge advantage because you’ll gain the right information, possible solutions to your tax problems, and personalized advice to help you make an informed decision on how to handle your situation. Here at McLaud Law P.C., our client-centered approach to tax issues, combined with our decades of combined experience handling tax law, has equipped our team to help countless clients resolve their tax issues.
Wondering if a tax attorney is right for your tax problem? Keep reading to learn more about tax attorneys, what they do, and how they could potentially help you navigate your current situation.
Types of Situations a Tax Attorney Can Help With
A tax attorney can help you navigate your tax situation regardless of where you are in the process. If you’re just forming a business or you’ve never filed taxes before, then a tax attorney can help inform and guide you through the steps. They’ll help you ensure that you remain legally compliant and that your tax returns maximize your tax situation.
Tax problems can arise if you fail to file your returns on time or if you fail to pay your tax debt in time. If that’s the case, you could start to incur financial fines, fees, penalties, and accruing interest. Even if you don’t file a return, the IRS will be able to determine an estimated amount of debt you owe based on financial data they receive from third parties, and they can use a variety of involuntary collection actions to collect those funds.
A tax attorney can help you if you’ve fallen behind, but they can also help if you suddenly face an unexpected tax audit. The right lawyer will help you understand the financial options available to you based on your tax situation and overall financial picture. An attorney is also available to help you negotiate with the IRS about your potential tax solutions.
Without the help of an attorney and without taking action, you could start to face IRS collection efforts. The IRS has the authority to potentially take a portion of your paycheck, seize your assets, or access your bank account. A tax attorney is equipped to help you deal with these types of collection efforts. Depending on your circumstances, you may be able to negotiate a payment arrangement that allows you to avoid further collection efforts against you.
How McLaud Law Can Help You Navigate Your Tax Problems
The tax department here at McLaud Law P.C. has decades of combined experience handling various tax matters for clients in need. We focus on meeting our clients’ needs in the most effective way possible, whether it be preparing a personal tax return, representing the client through a complicated business tax audit, or handling a serious criminal tax investigation.
When you hire us to help with your tax problems, we promptly address your issues by identifying what you owe, figuring out how far along in the collections process you are, and analyzing your current ability to pay. From there, we go over all your potential options for paying back what you owe, negotiating a lower settlement, or applying for some form of temporary or permanent financial relief. If you have another type of tax problem, we help you find a solution to that.
Since we’re customer-focused here at McLaud Law P.C., you can rely on our team to come up with a personalized approach to your specific situation. We never use aggressive sales techniques to sell clients services they don’t need. We want to make sure your needs come first and that we find you a sustainable solution so that you’re able to move forward without having your tax situation lingering over your head in the future.
How to Determine if Hiring a Tax Attorney is a Good Idea
Hiring a tax attorney is a good idea if you have tax problems that you don’t know how to handle on your own, and you need legal advice. Tax attorneys can help you deal with unpaid taxes, unfiled returns, collection actions, audits, appeals, voluntary disclosures, and other tax problems.
Tax Attorneys vs. CPAs vs. Enrolled Agents
If you’re dealing with legal tax matters, having a tax attorney on your side is always the best option. Tax attorneys are adept at understanding how your tax problem may be connected to other legal issues. An attorney is typically the only tax pro who can represent you in Tax Court, but they’re also a great option if you’re currently facing tax liens, levies, or warrants.
That said, are tax attorneys worth it if you’re seeking out more financially-driven tax advice? Ultimately, the answer depends on the attorney’s experience. A free consultation is your chance to figure out if the attorney is the right fit for your needs. Often, however, if you want help with the numbers such as forensic accounting, auditing complex accounting records, or advanced tax planning, you may want to look into hiring a Certified Public Accountant (CPA) instead of an attorney.
Enrolled Agents are a third type of tax professional who can represent you in front of the IRS. In many cases, these pros charge less than attorneys, and provide the same level of tax-focused expertise as a tax attorney. They can be a great option if your problem is strictly about taxes, which is why we have two Enrolled Agents on staff at McLaud Law P.C.
Can a Tax Attorney Help with NY Tax Problems?
Absolutely. A New York tax attorney has the knowledge, experience, and expertise to tackle any of your tax problems including filing your taxes, resolving unpaid taxes, coping with collection efforts, negotiating a tax plan with the IRS, or representing you in tax court. An experienced attorney can help you deal with state or federal tax problems.
If you’re dealing with the NY Department of Taxation and Finance, you will be best served by hiring a tax pro based in New York. They have experience dealing with the NY tax code, and they know how to find the best resolution methods for their clients.
How Does a Tax Attorney Look out for Your Best Interests?
A tax attorney is skilled at analyzing your entire financial picture and life circumstances. Then, they filter that information through their knowledge of tax law to customize a resolution plan that looks out for your best interests and maximizes your tax situation. A tax lawyer can help you reduce your overall tax liability, identify deductions and credits available to you, create future beneficial tax plans, and more. Most importantly, they are a strong advocate fighting for you in dealing with the IRS.
How to Find a Qualified Local Tax Attorney
When you have tax problems, any tax attorney can help, but it usually makes the most sense to hire a local tax attorney. Working with a local attorney is usually easier because you can tackle your tax questions with your attorney in person, provide your financial documents physically, and receive in-person representation if you need to go to court.
Searching online for a tax attorney near me and clicking the first result isn’t enough to ensure you hire proper representation, though. To ensure you hire a qualified lawyer, check out the lawyer’s experience, past results, and previous reviews from former clients. When you search IRS lawyers near me online, it might also make sense to include your specific tax problem in your search. That increases the odds of finding an attorney with the experience you need.
Also, when looking at reviews, make sure to focus on websites with reviews submitted by real former clients. Beware of review sites that just summarize info from a tax firm’s website and don’t include any client testimonials or first-hand experience.
Do Tax Attorneys Offer Free Consultations?
It depends on the specific law firm. Some tax attorneys offer free consultations, but others want you to invest in their services so they offer tax advice through a paid consultation. Often, even if an attorney doesn’t offer a free consultation, they will offer a short phone call before the paid consultation. That will provide enough time for you to briefly explain your issue and ensure the attorney has the right experience.
McLaud Law P.C. offers free 30-minute initial consultations. That allows us to get to know each other and understand what your situation is and what your goals are. We can discuss our fees and our plan for tackling your tax problem. If we agree our firm is the right fit for you, we can get started.
FAQs: Tax Attorneys and NY Tax Problems
Do you have more questions about your tax problems, tax attorneys, and how to hire one? Get answers to some of the most frequently asked questions about hiring a tax relief attorney below.
Can an attorney lower your overall tax debt amount?
It depends on your specific situation. If your financial situation proves that you can’t reasonably pay off what you owe without experiencing economic hardship, then an attorney may be able to negotiate with IRS agents to lower your overall tax debt amount. Sometimes, you might also be eligible for penalty relief that could reduce your tax bill.
Can attorneys negotiate with the IRS?
Absolutely. A tax attorney can speak directly with IRS agents and work out a deal for you. You have the right to retain any authorized representative of your choice, including a tax attorney, to represent you in front of the IRS.
How does a power of attorney work?
In the context of IRS matters, a power of attorney authorizes another person to represent you and make decisions on your behalf. In short, you’ll sign Form 2848 to give legal authority to the other person, and they’ll be able to review your situation and act as your representative in front of IRS agents.
If that person is a tax attorney, then the attorney will be able to speak freely with IRS agents about your sensitive financial information in order to negotiate a fair and reasonable solution. Since tax matters are private, the IRS won’t discuss these matters with someone who isn’t authorized to act as your representative.
How much does a tax attorney cost?
The answer to this hinges on the specific law firm you choose to work with, the complexity of your tax matters, and the level of work needed to reach a reasonable solution.
Hourly fees often range between $200 and $500 an hour, but every tax attorney operates on their own unique payment system. When attorneys charge flat fees, the cost can vary from a few hundred to a few thousand or more. Expect to pay more for tax resolution for challenging situations.
What type of tax solutions might be available in my situation?
Depending on the severity of your delinquency and your current ability to pay, you may be able to negotiate a reduced tax debt bill, agree to a monthly payment plan, have penalties reduced, or get filed under CNC status, providing a temporary level of collection relief.
What are the risks of handling my tax situation on my own?
When you choose to handle your tax situation on your own, you could wind up coming to a solution that doesn’t maximize your situation or serve your best interests. The main reason for this is because an IRS agent’s job is primarily to get you to pay what you owe as quickly as possible. They don’t have an incentive to provide you with information about other potential options, like penalty relief, negotiating a reduced settlement, or establishing a payment plan that fits your finances.
What are the consequences of ignoring a tax debt?
Ignoring a tax debt will only compound your problem, as the main consequences of ignoring your tax bills include incurring fines, compounding interest, wage garnishment, asset seizure, bank levies, and other potential collection efforts.
Depending on your specific circumstances, you could additionally face criminal charges if the IRS believes you are willfully and intentionally attempting to avoid paying your fair share of taxes. These consequences are usually avoidable, but if this sounds like your situation, you should certainly consult with a professional like a tax attorney.
Talk to a Tax Resolution Attorney in Rochester, NY Today
The right tax attorney will be more than a means to an end. They’ll be your best legal advocate, providing you with crucial tax information and advice to help you make solid tax decisions. Regardless of where you are in your tax journey, a tax resolution attorney can help guide you toward the best possible decision in your circumstances.
Are you ready to talk about your tax situation with a qualified tax expert? Schedule a meeting with our tax team now to discuss your taxes in more detail with our best representatives. All clients of McLaud Law P.C. have access to a tax attorney as well as other tax resolution professionals. Give us a call at 585-397-7785 if you are ready to let your tax problem be our tax problem.
This communication is Attorney Advertising. It is presented for informational purposes only and does not constitute legal advice. Every legal situation is different, and prior results do not guarantee a similar outcome. This communication does not create an attorney-client relationship between McLaud Law P.C. and the recipient.