When a tax situation requires an attorney

On Behalf of | Jan 11, 2019 | Income Tax

When tax season rolls around, most people in Connecticut and elsewhere try to file their taxes themselves or turn to accountants for assistance. There are some tax situations, though, that may require one to seek out a tax attorney for help. What situations would be best handled by an attorney rather than an accountant?

An accountant is good with numbers; an attorney understands the law. The goal of an accountant is to input numbers accurately and try to minimize a person’s tax liability. The goal of a tax attorney is to prevent or resolve any tax problems that may arise.

An individual might need a tax attorney when planning estate taxes. No one wants to leave their beneficiaries with a significant tax obligation. By planning one’s estate properly, estate taxes may be minimized so that beneficiaries receive what is intended for them rather than assets going to the government.

A person might need a tax attorney if he or she is just starting a business or is currently a business owner. There are different ways to structure a business, and each has varying tax ramifications. A tax attorney can help one choose the business structure that is best for one’s goals and offer advice on business tax strategies.

Finally, an individual might need a tax attorney when he or she disagrees with the Internal Revenue Service. Whether the IRS is accusing a person of a tax crime or one disagrees with the results of an audit — among other issues, going up against the IRS can be intimidating. It is not something one has to or should do alone.

While visiting a tax attorney may seem extreme to some people, there are times when doing so is in one’s best interests. Those in Connecticut who are not sure if they need a tax attorney for their specific issues can help themselves by asking questions. Legal counsel can offer guidance and direction on the best way to approach the problem.