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ROLE OF A TAX LAWYER, EA, CPA IN TAX DEBT REPRESENTATION AND TAX RELIEF

This article will define tax debt and tax relief, the role of representation by EA, CPA, lawyer, benefits that come with using a power of attorney, situations that they come in and some of the tax relief solutions they offer.

Tax debt is where one fails to pay taxes to the government as required by law. Tax relief is a program put in place to lessen or abolish tax debts.

Benefits of a tax relief attorney-in-fact or tax debt power of attorney

Attorney-client privilege. This concept requires that attorneys must keep confidential all the information that is given to him by the client. This is important as it enables the client to disclose all the information that he considers relevant without fear of disclosure by the attorney. This is significant because it allows the attorney to give the best advice and work efficiently. The benefit here is that this privilege does not exist in other tax professionals hence the risk of disclosure. Tax attorneys have the necessary knowledge and can offer a legally based advice. Their experience helps them provide a wide array of solutions than other professionals, and they can handle technical problems relating to tax. A tax attorney has the power to represent you in IRS and step in on your behalf on any matter of IRS this is a benefit compared to other tax professions, CPAs, EAs as the attorneys can also represent you in court on tax matters. Tax lawyers are equipped with skills that enable them to negotiate in tax related problems.

Circumstances that one needs to have a tax debt attorney

Criminal cases of tax evasion attract grave consequences and penalties. If one has committed such offense, there is a need to get a tax relief lawyer. An attorney can relief you from penalties by giving proof that tax noncompliance was founded on legitimate grounds. In most cases, a person who has committed tax crimes are likely to be investigated. It is vital to have a criminal tax attorney to represent you while undergoing questioning so that you may not end up giving self-criminalizing evidence. A tax attorney, EA, CPA is also needed in cases of the tax liens or levies. This is a situation where the IRS have the priority of your property before any debtor which ends up impairing your borrowing capacity. There is a need to find a tax debt attorney-in-fact to resolve the tax lien lest it becomes a tax levy where all your assets are seized.

Tax debt and tax relief EAs, CPAs, attorneys offer a wide range of solutions to clients. However, they are tasked to give the best solution that will address the issue at hand. One of the solutions is offering compromise settlements. This is a kind of relief which enables you to pay taxes in a lesser amount than the owed amount. This can only be possible if it can be proven that in case the IRS forcefully take taxes from you, the amount will be same or higher than the one offered in compromise settlement. This is a technical issue and requires excellent negotiation and convincing skills. Another solution is through tax planning.  A representative can assess the financial status of the client and help them to determine the best payment method to avoid incurring more debt. Another tax relief solution is through penalty abatement. For IRS to relieve one of the penalties, they must show that the excuse for noncompliance is legitimate. Tax relief lawyer, CPA, EA can best do this as they have tax knowledge, in some cases, taxpayers uses bankruptcy as a means of resolving tax debt. A person will require a bankruptcy attorney because of the complexity of bankruptcy issues.

From the above discussion, it is evident that tax debt and relief attorneys, EAs, CPAs are vital as compared to taxpayers getting resolution. This is mainly due to the complexity of tax debts and relief issues. Sound special knowledge and skill set are essential in proving or negotiating for tax relief.

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Proactive Tax Planning

We’re well aware that many people let “Tax Planning” slide down to the bottom of their to-do list when it’s not actually tax season. It’s an “out of sight, out of mind” problem.

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