For many self-employed individuals and small business owners, it is possible to be your own accountant and file your own taxes every year. Proper book keeping and online tax resources make it easier than ever to act as your own CPA. But as any business owner knows, there are times when it is necessary to turn to a professional. In some circumstances, it is wise and necessary to work with a business tax attorney.
The IRS has incredible power to cause headaches for small business owners. Whether you are a 1099 independent contractor or an LLC, one slip up in your taxes can cause years of trouble if you are not careful. If your business is on the line, it is critical that you get the expert advice of a tax attorney.
Hiring a tax attorney is not cheap. If you are the type of tax filer who is used to using a Turbo tax coupon to lower your tax bill, you may not be prepared to work with an attorney. However, if you are facing an IRS audit or a lien against any of your business assets, know that the cost of a tax attorney is an investment in your future success. You may not be prepared to navigate the web of IRS bureaucracy and tax forms.
An attorney can also grant you attorney-client privilege and is exempt from testifying against you. This means that anything you tell your lawyer cannot be used against you during an IRS investigation or if your case should go to trial. A CPA does not have this privilege.
If you are already in contact with an IRS representative, the time to talk to an attorney might be right now. Most tax disputes come with hard deadlines attached, so the sooner you start working with an attorney the better. If you are the target of an IRS criminal investigation, your rights, your business, and your future may be at stake. Don’t delay, as tax attorneys are trained to deal with all aspects of IRS tax law.