When Should You Hire a Tax Collection Lawyer?

 Have you ever felt like you've hit a dead-end while navigating the never-ending world of tax laws? We don't blame you! Facing the tax issues which are way beyond your knowledge or expertise can be daunting, and you may require the assistance of a professional tax lawyer. Tax lawyers possess the skills necessary to evade any issues with the IRS as their guidance proves to be valuable in tax disputes. There are many complex aspects to tax law, so taxpayers must seek out professional legal advice before making any decisions about their taxes. But when exactly should you hire a tax collection lawyer? Should you call them at the slightest inconvenience or wait for the things to go from bad to worse? Both the approaches are not appropriate and to help you understand the need for a tax lawyer, we’ve compiled a list of signs that might be telling you that it’s time to call your tax lawyer.

What does a tax collection lawyer do?

Before we go into the signs, here’s a brief introduction to tax lawyers and their role and responsibilities:

As the name suggests, a tax lawyer specializes in tax law. Attorneys with experience in tax law help people streamline their finances to improve tax situations, comply with tax rules, and resolve tax disputes with the IRS and other taxing authorities. 

How to choose a suitable tac attorney: things to look

Some attorneys specialize in different areas, while others offer pocket-friendly services. The quality of service will vary greatly depending upon various factors. Here are three things to look for in a tax attorney to ensure quality service:

1. Law License: Always visit your attorney's website to look for a legitimate license to practice law in the state. 

2. PTIN or Preparer Tax Identification Number: PTIN is important as one of the responsibilities of a tax lawyer is to prepare a federal tax return. This is a mandatory condition put forth by the IRS. 

3. Relevant qualification and experience: A law degree is vital for a tax attorney to practice. While looking for the one to handle your case, prefer an attorney with sufficient qualifications from a recognized educational institute.  

What is the best time to hire a tax lawyer?

Generally, filing a regular tax return does not require the assistance from a highly qualified and skilled professional however, there are some critical cases where you would require a tax lawyer to navigate the complexities of tax laws such as:

• Settling tax disputes: This is one of the most common problems which require the help of an experienced tax attorney. Having a tax dispute with the IRS is never the ideal situation and should be resolved as soon as possible. A tax lawyer will chalk out the right course of action for you. 

• Starting a business: Starting a new business also comes with a lot of tax challenges. A tax attorney will educate on the issues faced by businesses and the solutions to evade them.

• Investing in real estate: Essentially, a tax attorney can help you understand tax depreciation and how it impacts your individual income tax return if you are considering buying a rental property so that you can take full advantage of the federal tax code and reduce your income tax.

  If you’re also facing any of these problems, we think that it might be time for you to find a tax collection lawyer who understands the federal and state tax codes. Contact us today to get started.