Reasons You Might Need to Hire a Tax Attorney
Tax season has come and gone once again, and chances are you were able to file your taxes without incident—this time around. However, you might be at risk of being audited or have questions about how to go about filing your next tax return. If this sounds like you, it might be a good idea to hire a tax attorney to help you out with your tax woes in the future. Here are some situations that can require the services of a tax attorney.
1. You are audited by the Internal Revenue Service (IRS).
The IRS is a taxing agency that has been around for many years. It has developed an extensive system of rules and laws to be applied to taxpayers. The most important part of this system of laws is the Internal Revenue Code, which is often referred to as the “law.” The IRS uses its computers and other tools to gather information about taxpayers using what’s called the “tax gap.” This tax gap is the difference between what taxpayers report on their tax return and what the IRS thinks they really should have reported. If you receive a notice that your return has been selected for an audit, then you should consult a lawyer to represent you.
2. You are not sure how much income to report on your return.
If the IRS believes that you intentionally underreported your income, then it can impose penalties on your tax return or even change your filing status. One example of this is if you are a single person and earn over $20,000 but claim yourself as “married filing separately.” Your earned income credit could be reduced or eliminated if this were to happen. To avoid any such penalties and to ensure that you report the right amount of income, it is best to consult a tax attorney. Los Angeles tax attorneys will help you with creating the right tax return for your situation and will make sure that you file proper paperwork.
3. You are not sure what deductions you are allowed to claim.
One of the most important parts of filing a tax return is the section that describes deductions and credits. If there are certain deductions or credits that you understand but others that you don’t fully comprehend, then working with an attorney might be your best bet. An experienced tax attorney can help you find out which deductions and credits apply to your specific situation and help you understand where on your tax return they should be claimed.
4. You have been audited in the past and are worried about being audited again.
If this has happened to you before, then you know that it can be a nerve-wracking experience. If you were audited for a previous tax return and still believe that you did not have anything to hide, then you may have been more than willing to cooperate with the IRS’s auditors. However, if they found something that they didn’t think was legal or fair, then they could impose fines on your return. To avoid fines on your tax return in the future, it is best to consult with a lawyer who can help you learn how to be more careful about what information is reported on your tax return.
It is important to note that the above situations are not the only ones that can require you to hire a tax attorney. If you have any of the types of issues listed in the article, then you should contact a Los Angeles tax attorney and discuss your situation with them.