Tuesday, June 14, 2011

Hiring an Income Tax Attorney

Filing your income tax can be frustrating, especially if you are used to having somebody else do it for you. For an average taxpayer, it can be difficult to keep track of all the tax laws and their changes. As a result, one can unknowingly commit mistakes in filing their income tax.

When the IRS finds that there is a discrepancy in your tax declaration, you would be given a notification of an audit. Although this is just to clarify the figures, an audit can be very intimidating and would leave you feeling helpless. To avoid such unnecessary problems, one can benefit from hiring an income tax attorney.

Income tax problems

Scenarios that often invite an audit includes not filing of Form 1040 tax returns of the previous years, filing of the required income tax return as stated by the IRS but not having enough funds to pay, discrepancies in the figures, or a combination of any of these scenarios.

Whatever the tax problem is, there are root causes to a taxpayer's failure to pay his taxes. One of the most common is not having enough income so the taxpayer is likely to spend his money that is set aside for tax purposes or not having enough to pay the full tax amount that is due.

Another reason is poor bookkeeping habits that make a taxpayer lose track of his expenditures and as a result accidentally spends his tax money. There are also those who lose their records that is why they do not know how much tax they owe and there are also others who evade their taxes on purpose.

Dealing with the IRS

As a general rule, the IRS is never friendly with those who have discrepancies in their taxes. Their job is to collect the unpaid taxes in any legal ways possible. When you are invited to an audit, it is best that you have a representation from an income tax attorney so that you can stay rational during the whole process. The IRS can be very aggressive; putting you in great deal of stress and pressure.

Their general stand is that there is never any circumstance in life that would prevent you from paying your taxes. If you fail to pay your taxes on time, you are not trustworthy and you are probably going to have a hard time paying all your other necessary bills as you are likely to just pay off the amount the IRS says you owe. When you are in a dispute with the IRS, they can hold all your assets. They can even make it difficult for you to sell real estate or get credit.

Hiring a representative

When dealing with the IRS in an audit, it is wise to just keep the talking to a minimum and refer them to your income tax attorney. Your lawyer will not only help you go through all the stress but they will also be able to come up with a fair negotiation that could reduce the amount of taxes that you owe or correct any errors that have been made.



By: David Patullo
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http://experiencedtaxattorneys.com/26/best-tax-attorney/

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