How Can a Tax Attorney Help Keep a Taxpayer Out of Serious Trouble?
It is critical to understand that a taxpayer is not guilty of tax fraud or evasion simply because the IRS or a state government agency says so. There must be enough evidence to prove the charge in front of a judge. In many cases, it may be possible to negotiate a settlement or have the case dropped completely without having to go to court at all.
An attorney will meet with government officials on behalf of the taxpayer, which will prevent that taxpayer from saying or doing anything that could potentially incriminate him or her. This is true even if an audit or any other meeting takes place anywhere other than an IRS office.
Furthermore, the government knows that a tax attorney has a better grasp of the tax code than the average taxpayer. Therefore, the IRS or state tax agency will not be able to use pressure tactics aimed at getting an admission of guilt or settling the case in favor of the government.
Is It Likely That a Tax Case Can Be Settled?
For the most part, the government isn’t interested in sending a taxpayer to prison. Instead, they want to get as much money as possible in as short a time period as possible. This means that it is likely that the government will be more than happy to take a reasonable settlement offer. However, the government may insist that penalties, fees and back taxes are paid in full based on their calculations even if they may not be accurate.
An attorney may be able to negotiate a settlement that removes some or all financial penalties that the government may be pursuing. Legal counsel will also be able to produce evidence that a taxpayer did not intentionally evade their tax obligation or do anything to defraud the government. In the event that a tax case cannot be settled outside of court, a tax lawyer can present arguments as to why the government is wrong in its assessment. This could lead a tax court judge to reduce the amount that a taxpayer owes or even side with the taxpayer and throw the case out.
Have Liens Removed and Taken Off of Your Credit Report
For those who aren’t able to pay a settlement amount in full, it may be possible to make installment payments or initiate any other payment plan that shows good faith. If there are liens on your property or your business, it may be possible to get them removed if such a plan is agreed to. Once these liens are removed, they will stop being reported to credit agencies, which can help you get personal or business loans in the future. A tax attorney can make sure that the liens are removed as agreed to and make sure that credit agencies are taking steps to update your credit report.
Taxpayers who are facing charges of tax fraud or evasion should know where they can turn to for help. With so much on the line, it is important to be able to tell your side of the story and possibly clear your name. Having the help of a qualified tax lawyer can make it easier to resolve any tax issues that you may have without the need to spend time in prison or plunge into financial ruin.