Tax Litigation Attorneys and How They Can Help You

Picture this. You’ve always filled out your own taxes and filed them in a timely manner. Out of the blue, you receive a letter from the IRS saying that you owe $8,000. You decide to contest this ruling and agree to meet with an IRS agent at a specified location and time. You bring all your supporting data and present it to him. He methodically takes each document reviews it and rejects it. You leave in a total quandary.

You do not have the $8,000 to pay the IRS so you decide to go to the next higher level. Here again you meet with an IRS agent at a different location and time. The room is painted stark white. There is one desk in the room and one chair. There is an IRS agent seated behind the desk. There is nothing on the desk except your folder. Again he reviews your documents and rejects your claim. You leave in a total state of panic. Now you know you cannot do this alone. You decide to meet with a tax litigation attorney and seek help.

With high unemployment and foreclosures this scenario is being played out in thousands of households across the nation. Here are several situations when you need the expert advice of a tax litigation attorney:

Business Related Tax Problems

There are many different situations when your need a Tax Litigation Attorney. If you are starting a business you must understand the full implications of your tax liabilities, you will have to deal with federal taxes, state states and probably county taxes. Many businesses are doing transactions on the internet that involve out-of-state or international transactions. These situations can be exceeding complex and involve expert tax knowledge for doing business in several countries simultaneously.

You need a tax attorney to set out the best methods of handling taxes, profit and loss for your business, fees and for general help with filing the necessary forms and paperwork for maintaining your ongoing operations.

Estates and Trusts

Wills, trusts, and probate are complex legal matters. The tax implications vary from state to state. You will need a tax litigation attorney to handle both the state and federal tax implications of planning and settling estate matters. There are a host of filing deadlines that must be met, with accurately filled out supporting documents and paperwork. In many cases there are lawsuits filed by individual family members that affect the outcome of the estate, the monies to be distributed to remaining family members and the taxes to be paid by each beneficiary.

Individual Tax Cases

There are several levels of tax litigation. You many need a review of your tax case before the US Tax Court. In many cases you may have been accused of fraud by taking illegal deductions. In severe cases you may be under criminal investigation. Each of these situations definitely requires the expert skills of a tax litigation attorney.

What Can You Expect?

Here are several options that your tax litigation attorney can present.

  • In cases of hardship, your attorney can petition the Court to stop payments until your financial situation improves. In most cases penalties can keep piling up. Your attorney can petition the Court to stop these penalties and set up an installment payment schedule that you can afford to pay.
  • One practice is to offer a compromise to the Court. This will greatly reduce your tax burden, though not eliminate it completely.
  • Another procedure used by your tax attorney is to file an amended return. You will need expert advice concerning exactly which items can and cannot be included. The IRS then must work off the amended return. Here again you are presenting a compromise to the IRS.

As you can see when dealing with the IRS, it is not prudent to try to go it alone. You are dealing with ever-changing rules and regulations and you need a tax litigation attorney to be at your side in these matters.