What is a Finance Tax Attorney?

What is a Finance Tax Attorney?

First of all, the question is do you really need a finance tax attorney? For most individuals that live off their pay check without any investments or other taxable income, there shouldn’t be any need for one. For individuals that have complicated investment portfolios, rental properties, home based businesses, or other types of income, then you probably should consider hiring one. If you are the legal representative of a company then you will obviously need a good finance tax attorney.

A finance tax attorney must have a comprehensive knowledge about tax laws. They have to be able to give the correct tax advice to people, as well as representing their clients in court for civil or criminal lawsuits. They are also experts in tax planning that can help you plan your finances so that you pay the legal minimum amount of taxes.

IRS Tax Penalties

One good reason to hire a tax attorney is to help you avoid the many IRS tax penalties. There are so many possible tax penalties; many people don’t know about most of them but they can land you with civil or criminal penalties. In fact, without the help from a tax attorney your tax debt could double in as little as 4 years due to penalties and interests.

Some of the civil penalties are filing late, failure to pay, underpaying your taxes due to negligence, understatement of income tax, filing a frivolous return, and failure to supply social security number. Some of these penalties are 5% of the tax dues but there are also penalties of up to $500. Of course criminal penalties could cost you a lot more than money, so it is worth having a finance tax attorney advise you and steer you clear of having to pay these civil penalties or having to go to court.

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They can also help you with a penalty abatement which will enable you to recover or remove tax penalties or interests. Also, if you owe back taxes and you can’t pay your tax debt then they can help you with an offer-in-compromise, if you are entitled to one. You may be able to settle your tax debt for a fraction of the amount due.

Criminal Tax Penalties

If you find yourself facing criminal penalties and a court case, then it is definitely time to find a good finance tax attorney. They will be responsible for putting up negotiations with the IRS and defending their clients for the duration of the criminal case proceedings. If you are found guilty, then it is their task to try and get a reduction of the tax penalty or a possible court settlement.

As you can appreciate, tax evasion or fraud is a serious matter, so don’t think that a tax accountant or a tax advisor will help you. You will need to find a reputable and competent finance tax attorney instead.