Articles Tagged with tax attorney

What is the Exit Tax Charged to Expatriates?
Some taxpayers may be attracted to the idea of expatriating in order to reduce their tax liability, but the “exit tax” that must be paid upon renunciation of citizenship can complicate those plans. This exit tax, also known as the expatriation tax, treats the taxpayer as though he or she has sold all assets at fair market value the day before expatriation. Obviously, this could result in an enormous tax bill for some taxpayers.

Covered Expatriates Under the Exit Tax

Only “covered expatriates” are subject to this tax. Three categories of taxpayers could be considered “covered expatriates”.

Tax litigation
When faced with a tax controversy between you and the IRS, you may feel like you are at a disadvantage. The IRS has a giant team at its disposal to pursue its case against you. However, you do not need to face tax issues alone. Hiring a tax litigation attorney can give you the expertise you need to fight and win your case as well as protect your rights.

Most tax controversies arise during or after an audit. This can be at the federal level with an IRS agent or with state tax auditors. Unlike tax attorneys that help you plan your business affairs or personal estate, a tax litigation lawyer is there to fight on your behalf when there is a discrepancy. This is a distinct set of skills that not all tax attorneys may have. When faced with owing back taxes, penalties, interest and even criminal charges, you want a tax litigation lawyer on your side.

When to Hire a California Tax Litigation Lawyer

Tax audit
Getting a letter from the IRS notifying you of an upcoming tax audit is never a welcome event. At the very least, it can be  a major inconvenience. At worst, it could mean the possibility of criminal investigation for tax fraud. Knowing how to proceed when you are notified can help you prepare for the worst while hoping for the best.

Types of IRS Audits

Not all IRS tax audits are the same. When notified of an impending audit, carefully read the verbiage used in your letter. IRS tax audits are often pursued if information on your tax return doesn’t match the IRS records or inconsistencies are found, but they can also be random selection or for the collection of data. The type of tax audit requested can help you determine what you should do next:

3d man thinking with red question marks over white background

When you are notified that you have been chosen for a tax return audit, you may not be sure what to do next. How do you prepare for an intense inspection of your tax documents and ensure you can answer any questions the tax auditor may have? Hiring a tax attorney can be the best way to prepare for this in depth look at your tax situation. Here are a few benefits of having an experienced tax that understands all aspects of the tax law on your side.

Tax Attorneys Versus CPAs

Your first thought may be to hire an accountant or CPA to help you prepare for a tax return audit. While an accountant may understand the tax code, they may not be educated in defending clients in an audit situation. A tax attorney has not only the tax knowledge needed to help you prepare for the audit, they can also help negotiate on your behalf during the audit and defend you if necessary in subsequent litigation. You have someone on your side that can interpret the law in your best interest and protect your assets and freedom if there are any issues uncovered during the audit.