Paying taxes is inevitable and failing to file your returns within the stipulated period often results in hefty penalties. Regardless, most people aren’t excited at the prospect of filing returns. This stance is understandable, as the Internal Revenue Code contains millions of words of legal jargon that are too complex for a layperson.
Tax evasion has severe impacts, and you risk getting hefty fines or going to jail. However, some people commit this crime unknowingly. For instance, you might have inconsistencies in your income reports, causing you to present wrong information when filing returns.
Sometimes, it might be a case of employees doing business off the books by dealing cash and neglecting receipts. In such a case, a tax attorney can come in handy. Read on to discover why it’s essential to enlist the services of a tax attorney.
1. Access to professional advice
Most business owners are content with the advice issued by their accountants. While their information is helpful, it isn’t good enough to deal with intricate tax laws. You need an experienced tax attorney who knows the impacts of filing for taxes in such cases. If you have some issues with your taxes, your lawyer will advise you on how to overcome them.
2. Help with tax audits
Every taxpayer dreads receiving a notice for a tax audit. The thought of incurring extra expenses after evaluating your income is frightening. Since an audit is similar to a legally binding contract, it has the same consequences as a civil case. Hiring Minnesota tax attorneys can help you mitigate the potential impacts of the audit.
Hiring a reputable lawyer is costly, but choosing an inexperienced attorney can be more expensive. If you choose to defend yourself, the results can become direr. Why? A tax attorney knows everything about taxation and can exploit weaknesses in a case against that you might otherwise overlook.
Some people consult their accountants, but they are not as swift as tax lawyers. The attorney knows how to leverage their expertise to your benefit. Although counsels charge more, the possible outcomes make it a worthwhile investment. Even better, lawyers fix your current issues while protecting you against future complications.
4. Minimizing possible consequences
Sometimes, the local tax authority might decide to levy criminal charges against you. This is the best time to hire a tax attorney. It’s worth noting that the taxman usually charges persons suspected of hiding their incomes to the government or evading taxation. Due to the gravity of these offenses, the sentences are typically severe. You might get hefty fines or lengthy jail terms, or both.
With a tax attorney, you can seek a plea bargaining agreement. This results in shorter sentences or a more lenient fine. If you’re lucky, you can get an acquittal.
If you’re facing a tax-related issue, it’s best to contact a specialist. A tax attorney will leverage their expertise to ensure that you don’t get penalized or serve time in jail.