Income tax debt is the tax required to be paid on any kind of personal or business income. Anyone with an income over a certain minimum amount limit may be liable to pay a State and or Federal income tax. An accountant can provide you with advice on how much of your income is taxable, how to calculate standard deductions and any rebates that may be available to a taxpayer but only income tax attorney can provide the important legal information necessary to address issues that may have arisen concerning the filing or failing to timely file an income tax return. In the case of a criminal proceeding for IRS tax evasion or fraud in a State or federal court, an attorney can be an essential ally in a fight to successfully refute that accusation.
When to Consult a Tax Attorney
It is import to discuss your tax issues with a tax attorney in the following situations:
- You are accused of committing tax fraud, such as claiming false deductions and credits, and you need the privacy and protection afforded by the attorney-client privilege.
- You have a Taxable Estate and need to make complex estate planning strategies, or you need to file an estate tax return.
- You are starting a business and need legal advice concerning the best tax treatment of your company assets and employee related issues.
- You conduct an international business and need help with business contracts, understanding international tax reporting requirements and other legal issues.
- You intend to bring a suit against the IRS.
- You want an independent review of your tax case before the US Tax Court.
- You are under criminal investigation by the IRS.
Help Only a Tax Attorney Can Provide
Some income tax attorneys also have a strong background in tax accounting. When facing complex accounting situations or an income tax audit as well as a legal taxation matter or criminal accusation, it is only sensible to seek out the advice and assistance of a tax attorney who is also a certified public accountant. While an accountant can represent you in an IRS tax audit, as can a tax attorney, only the tax attorney can represent you in a tax court situation.
At a business start-up, a tax attorney can review the various business formations to determine which might be best for the new business. He can review the business contracts and negotiations such as any rental property or purchase or sale of a business to determine the ultimate tax effects of those deals. A tax attorney can also provide advice on the treatment of sales and expenses and deductions such as business equipment and property depreciation to provide the most advantageous tax treatment. If the business is facing a bankruptcy, a tax relief attorney will be able to determine the best bankruptcy chapter to protect the business assets and detail the potential tax effects of the filing during and after the bankruptcy.
