When it comes to taxes, it is easy to get in legal trouble over various matters. From failing to file tax returns, putting inaccurate information on returns, and other related matters, getting in trouble with the IRS can be not only costly from a financial standpoint, but also lead to criminal charges and even a prison sentence. When any of these situations occur, having a tax attorney on your side can mean the difference between maintaining your freedom or going to jail. To learn more about the benefits of using a tax attorney, here are some ways one can help if you are facing legal troubles with the IRS.

Attorney-Client Privilege

By relying on a tax attorney for guidance in these situations instead of a CPA, you will be entitled to attorney-client privilege. By doing so, this means anything you say to your attorney will be kept strictly confidential. This can be important, since this allows a client to reveal all details of their case to their attorney without fear of it being used against them in court. If you choose to use a CPA in these situations, anything you discuss with them will be open to being used against you. In fact, your own CPA can be forced to testify against you in court, which can make an already complicated situation far worse for you.

Power of Attorney Representation

If you find yourself facing legal troubles with your taxes, working with a tax attorney can allow you to have power of attorney representation. With this, your attorney can represent you in all hearings pertaining to your case, which may include administrative hearings with the IRS as well as court appearances if charges are filed against you. In addition to representing you in court, your tax attorney can also handle all communications for you with the IRS, whether this is by phone, email, or face-to-face meetings. This can be vital to your case, since an attorney who has experience and knowledge in these matters will have a much better idea of what to say or not say to IRS officials. 

Negotiations

If you choose to negotiate with the IRS on your own, be prepared for it to not go very well. Since IRS agents will know you have little if any knowledge of the tax laws, they will use this to their advantage, and likely intimidate you into accepting a deal that is not to your advantage. But by using a skilled tax attorney in these matters, all this can change. By bringing an attorney with you to meetings and hearings, IRS officials will know they will be unable to use many of their tactics, which will ultimately lead to far better negotiations regarding your case. Since a tax attorney knows the IRS is far more interested in receiving payment than putting you in jail, they will be able to negotiate a settlement that is fair to everyone involved.

Criminal Investigations

If the IRS alleges you have committed certain acts related to your taxes that are serious enough to bring about criminal charges, having a tax attorney on your side can mean the difference between maintaining your freedom or receiving a lengthy prison sentence. In these matters, a tax attorney can advise you regarding details of your case, and will have extensive experience in preparing strategies that will get you the best results. In many situations where clients have no prior criminal record, fines and other penalties are often used in place of jail or prison sentences. By working with an attorney who understands how this process works, you can have peace of mind while your case plays out in court.

Rather than choose to go it alone in these situations, or perhaps make a bad situation much worse by simply trying to ignore it, hiring a tax attorney to help with your legal troubles can be one of the smartest decisions you will ever make. Whether you are under criminal investigation for tax evasion or fraud, are preparing to be audited, or perhaps simply need advice on how to interpret complex and confusing tax laws, relying on an experienced tax attorney will yield better results in all these matters.

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