According to an IRS
report, in 2015, the e-filing total was 128,784,000. Because there are so
many online options when it comes to tax filing, taxpayers may think that they
can handle the their own tax filing while getting the biggest refund. However,
they fail to realize that the tax code can be extremely complex. In many cases,
you may need a tax lawyer to ensure that you obtain the largest refund and not
an IRS audit notice.
Serious Software Limitations
Even the commercials convey an image
that it is so simple to file your taxes online. That may be true but how do you
know you are getting the biggest refund or paying the lowest amount? You really
do not. The software does all the work for you and does not explain how this is
done. Also, the software does not allow you to make deductions like a human tax
lawyer does. The software is not a human being, you can talk with a human
being. The software is cut and dry, there are many drawbacks to using software
unless you are renting an apartment and live a very simple life.
5 things that a tax lawyer can help you
with include the following:
- Respond to IRS Audit and Collection Notices: You will probably need the help of a tax lawyer if you get a call from the federal government and owe the IRS money. It can be a daunting task to deal with interviews, notices, and the numerous tax collecting tools that the IRS has. While there can be errors in determining the amount you owe the IRS, it may take the expertise of a trained professional to notice the mistake and advocate on your behalf.
- Try to keep you from being sent to prison: There can be serious penalties when you do not pay your taxes or pay them accurately or punctually. Not paying your taxes will not result in jail, but cheating on your taxes can. If you are being accused of tax fraud or some other crime that is related to taxes, a tax attorney can help keep you from being sent to the slammer or differentiate between a dishonest filing and an honest mistake.
- Guide you through IRS documents: Close to 2,000 IRS forms and publications exist and you can be sure that many are incomprehensible to the average person. Whether it is listing your taxpayer rights, the different ways that the IRS collects on tax debts or deductions, you may need the help of a tax lawyer to understand it all and guide you through the complex tax procedures of the IRS. Even IRS professionals do not understand their own tax code.
- Understand your business taxes: Although corporations are considered “people” in court, taxes on businesses or individuals are different. There are a large number of professional situations that play a role in your income tax filing. According to new data from the Revenue Statistics publication of the OECD, individual income tax revenues increased from 8.8 percent to 8.9 percent from 2007 to 2014. You will require the help of a tax lawyer to understand all your business or self-employment taxes and sort through them.
- Advise you on how to lower your taxes: Dealing with your taxes this year is all well and good. But are you worried about next year’s potential tax hit? There are many different ways to lower your tax liability in the future, and a tax lawyer is the best person to give you advice on which methods are best for you.
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