A Tax Attorney is a person that has been authorized by a province, territory or state to administer and represent the province, territory or state taxation department. Tax law or income tax law is a specialized area of legal study where governmental or public bodies, including state and provincial governments, use a uniform body of laws and procedural procedures to calculate and collect revenues in a legal framework. In simple terms, a Tax Attorney is a lawyer that specifically deals with taxation matters. A tax attorney is expected to be knowledgeable in all areas of taxation, including corporate, income, estate, gift, property and personal taxes. In more complex terms, a tax attorney is expected to be knowledgeable in taxation law applicable to businesses and individuals, as well as in international tax matters.
It is common for individuals and small businesses to encounter issues with their tax payments and/or claims. These issues can range from tax disputes with the IRS to income taxes or death taxes. At times, individuals and small businesses may be accused of evading income taxes, while other individuals and small businesses may be accused of fraudulently inflating their income on their tax returns. No matter what the issue is, a competent tax attorney will be able to help you resolve your tax-related issues. It is important that before a tax problem goes to court, it is first discussed with a competent professional.
A competent tax attorney will advise and represent you during any formal proceedings associated with your income taxes. When you are audited, you are advised to hire a tax attorney as this person will have the appropriate information to guide through the proceedings. During an audit, the auditor will review all documentation provided as proof of your financial transactions. This includes bank statements, pay stubs, cancelled checks, copies of cancelled checks and other documents that may be used as evidence. Auditors also look for statements you made on your tax return such as an explanation as to why you entered certain deductions or as to whether you were self-employed. If you are under investigation, you should consult a tax attorney as soon as possible.
An audit notice is sent to taxpayers after the audit has been conducted and the case has not been closed yet. You might need to hire a tax lawyer if you received a notice from the IRS regarding your investigation. An audit notice usually states the steps the Internal Revenue Service has determined are related to your taxes, such as an improper response to a request for additional information. The IRS might need to validate the information you provided regarding deductions or the financial status of your business, if it cannot be verified, you could face fines.
The tax controversy or audit notice will give you until the due date to answer the question you were asked. Answering correctly can save you a lot of money and time. You will want to retain a tax attorney to answer the questions you might have. They can help you determine whether you are liable for excessive taxes. You will need to investigate how much money you are liable for and how much the total penalties are for back taxes. The tax attorney can advise you on how to resolve your tax liability issues.
You should also consider hiring a tax attorney to represent you if you have a financial records problem. You might have inadvertently made purchases using your credit card without remembering and accidentally paying the wrong amount of money. It is not uncommon for people to accidentally make double debit transactions to their accounts, which can cause an enormous amount of penalties. A qualified attorney will know the complexities of complex tax issues and be able to guide you through the process.