Here Are Three Situations For Which You Need a Tax Attorney

Tax attorneys and accountants can offer tremendous assistance, no matter what your financial circumstances may be. In what situations is a tax attorney the most helpful? Here are three situations that are particularly relevant.

3 Reasons To Hire A Tax Attorney And How They Help

Situation #1: Your Estate is Taxable

In terms of federal tax laws in 2020, your estate is only taxable if it exceeds $11.58 million. That level may be much more than most of us need to think about, but if you are at those stratospheric levels, then estate planning is essential – and you will want the assistance of a tax attorney, not just an accountant.

Situation #2: The IRS is Investigating You

If you are under criminal investigation by the IRS, then you will definitely need a tax attorney. If you want to bring a lawsuit against the IRS, or if you want the U.S. Tax Court to review your case independently, these cases will all require professional legal counsel. One of the big reasons for this counsel is so that you can confide in your attorney. Any conversations you have will be protected by attorney-client privilege. Your attorney will never need to tell the court anything you have talked about. Your attorney is under no legal obligation or legal duty to tell the court anything.

Situation #3: You Are Setting Up Your Own Business

All business decisions have tax implications – particularly those decisions you make when you are first establishing your business. You may want to incorporate. You may want to form an LLC or an S Corp. You may want to go into business as a sole proprietor. A tax attorney can advise you on the tax treatment of your new business, as well as some other issues not relating to taxes that you perhaps had not yet addressed. You will also need assistance with contracts and business structure, including the establishment of your Board of Directors.