When to Hire a Tax Attorney

While I truly wish that I could help every potential client who calls my office, there are many cases that I decline because it is simply not economical for the potential client to hire an attorney. Fortunately, there are several alternatives for taxpayers who have a balance owed to the IRS but cannot afford private legal representation.

Step One: Understand Your Tax Situation

Before taking any action, it’s essential to get a clear picture of your tax situation. I always recommend starting by creating an online account at IRS.gov: Online account for individuals | Internal Revenue Service. This allows you to:

·       View your account transcripts

·       Identify which tax years have a balance due

·       Confirm whether all required tax returns have been filed

If you owe less than $50,000 in total for all tax years combined and are up to date on your filings, you may be eligible to request an installment agreement directly through your IRS account.

Step Two: Consider Hiring a Reputable CPA

Once you’ve reviewed your IRS account and identified your tax issues, the next smart move may be to hire a reputable Certified Public Accountant (CPA) or Enrolled Agent (EA), particularly if:

·       You have unfiled tax returns from prior years

·       Your income includes self-employment, rental properties, or investment accounts

·       You suspect errors on past returns and want to amend them

You can verify that your CPA is in compliance with the Florida licensure requirements at the Florida Department of Business & Professional Regulation. The IRS website provides additional information about understanding tax return preparer credentials and qualifications.

In most cases, a CPA costs significantly less than an attorney, especially when it comes to routine tax matters like preparing returns. But a good CPA can do more than just prepare your returns. They can analyze your overall tax situation, help you get into compliance with the IRS, and potentially save you money (or legal trouble) down the road. They may also be able to help you set up a payment plan with the IRS.

If you’re unsure whether you need a CPA or a tax attorney, keep in mind that CPAs focus on tax advising, tax preparation, and filing, while attorneys are more suited for complex negotiations, legal disputes and court representation.  

Contact Carbone Law, P.A. for a consultation if you believe you need expert legal help and want to discuss your options.