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Fazzio Law Offices

Why You Need a Tax Lawyer

Why Do You Need a Tax Lawyer?

You Need a Tax Lawyer

You need a Tax Lawyer, not a Tax Resolution Company. Resolution companies are springing up all over the country promising tax relief for a small fee. They offer to solve your problem for a “flat” or “monthly” fee. They offer to get you a settlement for “pennies on the dollar.” They claim they are experts who frequently appear on news programs. But, too often, these national tax resolution outfits are nothing more than wolves in sheep’s clothing. And even for those who are legitimate, these companies cannot offer the array of services that a tax lawyer can provide. A Tax Lawyer can stand up to the IRS for you and get you the best deal you are entitled to. 

What a Tax Lawyer Can Offer that Others Cannot

Attorney-Client Privilege

With a Tax Lawyer, you have the benefit of attorney-client privilege. Only conversations with a licensed attorney are privileged. So, you don’t need to worry that something you say will be passed along to the tax authority and that it might unwittingly incriminate you, making matters worse. Tax Lawyers, unlike tax resolution firms, understand the criminal law, civil procedure, and evidence. They know what to say, and more importantly what not to say. Tax resolution companies may not have this discretion and one wrong statement to the IRS or state tax authority could cost you handsomely.

Ability to Take Your Case to Court

Tax Lawyers can do some important things that most other representatives cannot. First, a Tax Lawyer can go to court. Not only is a Tax Lawyer trained in all of the administrative and procedural rights at your disposal, but a Tax Lawyer can also take the matter to court if your rights are violated. You may not want to go to court, but the fact that the IRS and state tax authorities know that you can if necessary, will make them think twice before trying to take advantage of you. With a Tax Lawyer on your side, the IRS and state tax authorities are far less likely to try to pull the wool over your eyes.

To a greater extent than other tax representatives, IRS and state tax authority personnel defer to a Tax Lawyer’s understanding of the collection procedure and recognize that if a fair result cannot be reached, the Tax Lawyer will probably appeal the matter to a Supervisor or a higher tribunal or even a court of law for review. 

Ability to Appeal an Unfair Result

Second, Tax Lawyers are known for bringing collection matters to IRS Appeals and taking IRS Appeals matters to Tax Court. A Tax Lawyer’s ability to escalate review chastens overreaching by IRS and state tax collectors and reduces overly aggressive collection practices like sending all of your customers a tax levy saying to send their payments to the IRS. A Tax Lawyer’s knowledge of procedure can help you to get a fair shake and can help to curtail the zeal of an overzealous tax collector who is making your life miserable. 

Ability to Understand the Nuances of the Tax Law

Third, Tax Lawyers can better research the underlying tax law that IRS processes and procedures are based on, understanding their complexities when it counts. This can provide you with a leg up when negotiating with non-lawyer IRS personnel, who often misunderstand or misread complex or nuanced rules. 

What Tax Resolution Companies Promise – But Cannot Deliver

Tax resolution companies promise to solve your tax problem for “pennies on the dollar.” This misleading advertising has gotten so bad, the IRS itself issued a warning to beware of this kind of “bad advice.(https://www.irs.gov/uac/check-carefully-before-applying-for-offers-in-compromise-1).

Bold promises like “settling your tax debt for pennies on the dollar” should be a dead give-away that you are being scammed. Obviously, this is too good to be true. Most people cannot qualify for such extreme relief, and it is misleading to imply that this kind of relief is realistic for you.

Only an experienced tax professional like a Tax Attorney, CPA, or Enrolled Agent who routinely represents taxpayers in tax disputes can analyze your situation and tell you what kind of resolution is available in your particular case.

Tax resolution companies tout the fact they have appeared “as seen on TV… CNN, CNBC, FOX, etc.” In the vast majority of cases, these companies are implying they are appearing on the news as experts, when in fact, in most cases, they have simply signed up for paid advertising. Anyone can pay for an ad, but it doesn’t make you an expert.

Tax resolution companies advertise that they have tax attorneys on staff.  In many cases these firms serve the whole country and these “tax attorneys” are not even licensed in your jurisdiction. Worse still, many of these “tax attorneys” don’t even work for the resolution firm full-time, but are outsourced. You should do your homework on a tax resolution firm to make sure they have a local presence and know the local tax authorities you will be dealing with.

There is an old saying: “A good lawyer knows the law. A great lawyer knows the judge.” It takes time to develop a reputation. It takes even longer to develop a relationship.  Common sense dictates that to get the best result, you want a tax lawyer with a good reputation and a cordial relationship with the local taxing authorities, who routinely handles matters before them. A national tax resolution outfit usually will not be able to provide this type of local expertise and local presence. If you are in New York or New Jersey, we have folks on the ground who have experience with the local tax authorities and who are known by them.

Get a Tax Lawyer on Your Side -- Call Fazzio Law Offices Today -- (201) 529-8024.