Taxes are a constant in life. We pay taxes when we buy goods, when we travel, and we even pull a portion directly from our income to pay the Internal Revenue Service (IRS). Many of these interactions are fairly mindless, but others can become complicated. When the complications get expensive, it is often a good idea to hire legal counsel experienced in the niche area of tax law.
Three examples of tax situations that can warrant seeking the help of a tax attorney include:
- Sale of a business. As noted by the IRS, the sale of a business is more than the sale of a single asset. It generally involves the sale of multiple assets. Each asset is generally classified as a capital asset and capital gains taxes could be due on each. A tax professional can review the implications and discuss the best ways to mitigate the tax obligations that come with the sale.
- A large tax bill. An attorney can also be beneficial if you already owe a large amount of taxes or expect to have a large tax bill this year. This tax professional can discuss various payment plans, including installment payments, to help make the bill more manageable.
- Allegations of wrongdoing. Whether currently the subject of a tax audit or accused of wrongdoing upon completion of an audit, those who face allegations of tax fraud or tax evasion are wise to seek legal counsel. These allegations can come with serious penalties.
Depending on the details, potential penalties can include steep fines as well as potential prison time.