When to use a tax attorney depends on the circumstances of your case. Many attorneys bill by the hour, but some charge by a flat rate for similar cases. Before you choose a tax attorney, find out if you can afford their fees and if they have the experience you need. If you're not sure whether a tax attorney is right for you, read a review online or contact friends and family. They may be able to recommend someone who can help you.
If your situation is complex and requires extensive legal work, you may want to consider hiring a tax attorney. While your CPA will likely refer you to a tax attorney, it's wise to choose an experienced professional. An attorney will help you figure out what steps to take and can represent you in court, if necessary. Often, an attorney can help you settle your tax debt for less, or negotiate a settlement with the IRS. IRS officials rarely accept offers in compromise, and you will need to be able to convince them of your hardship and possess only minimal assets.
There are many complicated situations that may require the services of a tax attorney. For example, some taxpayers have difficulty reporting investments overseas or owing back taxes. Some of these taxpayers may be dealing with foreclosure or short sales, which can have significant income tax implications. Regardless of your specific circumstances, hiring a tax attorney is a smart move if you'd like to avoid penalties and interest. You can't afford to handle all these details on your own.
If you're unsure of whether you need a tax attorney or a CPA, you should consult with a certified public accountant (CPA). Both professionals can help you prepare your taxes, but each has distinct strengths and weaknesses. A dually certified attorney-CPA is likely to offer a more comprehensive service and is better equipped to resolve complex tax issues. A tax attorney also has more experience in dispute resolution than the average CPA.