Matters of taxation must always be handled with utmost professionalism and care, a primary reason why, from time to time, you need expert services. This is primarily because the federal and state governments never play games when it comes to ensuring compliance with taxation requirements. As such, what might be an innocent mistake or ignorable errors from your perspective can quickly lead to adverse consequences. As a taxpayer, the last position you ever want to be is at loggerheads with the taxman as these interactions are often too complicated and demanding. To avoid having to be in these unpleasant situations, it is crucial to know the right professionals to call at the right time. Primarily, in the world of taxation, you have the option of seeking either the services of a certified public accountant or a tax attorney.
For most people, the professional they associate with taxation is a certified public accountant, given their expertise in handling numbers and financial management. It is therefore not surprising that in the hour of need, especially when filing taxes, these professionals have lots of demands. However, the crucial role of a tax attorney cannot be ignored as these legal experts have the ability to handle complex situations. Most of these situations are above the reach of a CPA, and it counts to know when to call these specialists in tax law. There are several circumstances when you need the expertise of a tax attorney and these include;
1. Planning to start, buy, or sell a business
There are lots of aspects that have to be considered by anyone starting a business, and one of the most crucial factors is on the taxation requirements. This must not only be a worry for startups but also anyone planning to buy or sell their business without any drawbacks. In the United States, different companies have various taxation regulations that they must adhere to depending on their formal structures. A tax attorney can simplify these requirements and make it easier to kick-off that business on the right foot and sell or buy that business without worrying about any legal implications.
2. Estate planning
If you are planning to leave your assets to family members or any other third party, then the services of a tax attorney are unavoidable. Estate planning is always demanding as it covers lots of legal aspects plus taxation requirements. A tax attorney plays a crucial role in minimizing the taxation burden extended to the heirs and ensuring they attain maximum value.
3. Engaged in international business
It can be challenging to meet the legal threshold set for international companies without the assistance of a seasoned tax attorney. The core of successfully running an international business is professionally managing the contracts, having a favorable tax program, and keeping in check all other legal matters. A tax lawyer makes all this possible and saves you from having to take unwanted risks.
4. Tax-related cases
If you have a date with the IRS or state agencies that handle taxation, it is never a time to confide in your accountant but seek a tax attorney. One thing to have in mind is that any tax concerns right from a call for audit to charges for tax fraud are too complicated to handle on your own. Having the wrong partner by your side will also lead to more frustrations as they will be limited to how much they can be of help. A tax attorney eliminates all these worries as they have a special attorney-client privilege that makes them a partner to trust during this challenging period. You will further have the peace of mind that nothing said to the attorney in confidentiality can ever be used against you.
A tax attorney will provide you with a tailored guide map for handling any tax problems you have while protecting your rights. Given their know-how and understanding of tax laws, it is easier for professionals to negotiate a suitable deal if there is a need. Ultimately, the role that an attorney plays in tax-related cases cannot be substituted as they ensure each element is handled timely and professionally. The best part is that by working with an experienced attorney, you have the confidence in speeding the process and avoiding lots of loopholes that can result in adverse consequences.