No matter what you do for a living, no matter if your salaried, self employed or command a thriving business, none of us is above the scrutiny of the IRS. While we all do our best to ensure that we fill out our taxed knowledgeably, accurately and fairly, it’s possible for just about anyone to be audited, even if we don’t do one of the things that are known to trigger an audit. Sometimes a mistake, no matter how innocently made can have huge and long lasting repercussions in the event of an audit that can seriously derail your plans to aid your financial well being.
Thus, even if you haven’t been audited this year an audit can take place within 3 years of a tax return’s submission or in some cases even longer. Thus, it’s always helpful to have a tax attorney on speed dial. This is especially pertinent if you own your own business. Let’s not forget that your business’ reputation (and yours as an entrepreneur) could be compromised by an altercation with the Internal Revenue Service. Of course, entrepreneurs are known to be averse to spending a penny in unnecessary overheads so they may need a little more convincing. Even if you feel that there’s such a thing as too much financial assistance, a tax attorney is worth every penny of their fee for the following reasons…
Tax attorneys are skilled litigators
In the event of an audit you’re no longer fighting a battle against the mathematical intricacies of the tax system, you’re fighting a legal battle, and as such you need a skilled litigator on your side. Legal (and especially tax law) knowledge is of course extremely important in your representation but alongside this legal talent is a commodity worth paying for. Just look at Ogletree Deakins’ recruitment coup in securing the talents of Lisa Hamasaki. If big business is prepared to pay for a top drawer litigator to protect the interests and reputation of their clients, you and / or your business deserve the same combination of talent, knowledge and passion. They can work with the IRS to defend you and your business and prevent needlessly punitive measures.
Many are also CPAs
Everyone likes a two for one deal and most tax attorneys also double as CPAs (Certified Public Accountants). This means that you will have a one stop shop for all of your tax needs. This is great because you will have a personal relationship with someone who has a strong knowledge of all aspects of tax. Thus you have the peace of mind of not only knowing that your accountant knows the tax system well enough to prevent the chance of an audit while also having the legal knowledge to protect your interests should the worst occur.
They are exempt from testifying against you
Unlike a CPA or tax preparer, however, your tax attorney is legally exempt from testifying against you should your tax affairs go to court due to the nature of attorney and client privilege. Thus you can be assured that they will be able to protect your interests completely.