Why Should I Have a Tax Attorney Help With My Tax Return?

 Posted on April 19, 2018 in Taxation Law

As tax season draws to an end, many taxpayers have scrambled to compile financial information and file their tax returns prior to this year’s extended deadline of April 18. During this time, many people worked with accountants or tax preparers to ensure they were able to obtain the largest possible tax refund. In many cases, however, the assistance of an experienced tax attorney can be essential when preparing your tax return, addressing complex legal issues, and avoiding potential tax penalties.

Benefits Provided By a Skilled Tax Lawyer

While a certified public accountant (CPA) will have knowledge of financial matters related to taxes, such as allowable deductions and tax credits, an experienced taxation law attorney will have a deep understanding of the legal issues related to tax audits and IRS collection. A tax attorney can help with the following:

• Business tax issues - An attorney will understand how the type of business entity (e.g., S-corporation, LLC, etc.) affects taxable income, tax rates, and allowable deductions for business expenses. He or she can additionally assist with issues related to employment, including ensuring that workers are classified correctly and processing 1099 forms for independent contractors.

• Reporting foreign assets - Any U.S. taxpayer who owns investments, accounts, or other assets in foreign countries is required to report these assets and pay applicable taxes. A skilled attorney can help recognize any legal issues that may arise with regard to offshore assets, will properly advise about filing Foreign Bank and Financial Account Reports (FBARs), and can address issues with offshore tax compliance.

• Avoiding an audit - Information reported on a tax return is subject to investigation by the IRS through a tax audit. An experienced tax attorney understands what the IRS looks for when deciding whether to perform an audit. Therefore, he or she can help ensure that information is reported correctly to avoid the possibility of an audit. 

In addition to assistance with tax returns, an attorney can provide insight on a wide variety of legal issues related to taxes, including how to utilize estate planning to protect assets from estate taxes and how to properly realize tax benefits when completing real estate transactions.

Contact a San Jose, CA Tax Attorney

Whether you need to address complex business issues, report foreign financial assets, or ensure that you are claiming the proper deductions, John D. Teter Law Offices can provide you with the legal assistance you need when preparing to file your tax return. We will answer your questions and work with you concerning strategies and possible outcomes while avoiding potential penalties from a tax audit. Contact our San Jose taxation law attorney today by calling 408-866-1810.

Sources:

https://www.thebalance.com/when-do-you-need-a-tax-attorney-3193054