Finding assistance for an IRS issue can be overwhelming. This article will discuss the difference between a tax attorney and a tax advocate, when to consider each of them, and how to determine which one meets your needs as a North Carolina taxpayer.
Tax Attorney vs. Tax Advocate
A tax attorney is a licensed attorney who is experienced in handling legal issues in disputes with the IRS or the North Carolina Department of Revenue. Tax attorneys provide legal advice, protect privileged communication, facilitate negotiations of complex settlements, and represent you in U.S. Tax Court or state court. If your tax situation exposes you to legal issues and is on a track to litigation, you should often be safe choosing an attorney.
Follow https://www.law.cornell.edu/wex/tax_attorney to know more.
Tax Advocate can mean two things. One meaning of tax advocate is a professional who is a representative like a CPA or Enrolled Agent who helps you fix account issues, assists you with payment plans and communicates with the IRS on your behalf. The other definition is the IRS’s Taxpayer Advocate Service (TAS), an independent unit to assist taxpayers when there has been, or will be, a significant hardship due to the Internal Revenue Service (IRS) or to address systemic delays with the IRS. Taxpayer Advocates try to seek solutions, but do not provide you with legal advice and will not represent you in a court of law.
When to Hire a Tax Attorney
A seasoned Raleigh NC tax attorney can step in when you have rights, income or property at stake, and are seeking an individual with experience to help you sort through your options and alternatives like tax debt relief mechanisms. Consider consulting an attorney if any of these categories describe your situation:
- You are facing an audit which has potential penalties above just math errors, or you require IRS audit representation.
- You have received (or are about to receive) IRS issued liens, levies, or wage garnishment and need immediate protection.
- You are considering an offer-in-compromise or significant payment plan that relates to your business payroll or trust fund taxes.
- There is a possibility of civil fraud penalties or a criminal tax investigation, and you need attorney-client privilege.
- You must appeal the IRS’s unfavorable ruling or prepare for litigation.
How a Tax Advocate Helps
If your main issue with the IRS (Internal Revenue Service – see here for more info) involves delay, improperly applied payments, or you have difficulty connecting to a live agent, a tax advocate can be an even more important partner. A tax advocate can assist you in fixing account issues, elevate your case when you are qualified for economic hardship relief, and will push the IRS to act when the IRS has stopped responding through normal channels. Many representatives in private practice also provide tax resolution services focused primarily on the paperwork, calls, and diligence.
What advocates generally cannot do, however, is give you informed legal advice concerning risk, defend you in court, or covet the attorney-client privilege. If your proceeding moves from administrative to legal – meaning you have an official appeal, or an allegation of fraud begins to be assessed against you – you will want to get an attorney involved.
Do You Need Legal Representation?
Begin your decision with the estimation of risk and your comfort level. If you are uncertain of your disclosures, feeling stressed about signing forms under penalty of perjury, you are dealing with several risks at once, legal representations can help you find a safe path forward. For many taxpayers a blended option works: attorneys can assist with the strategy and scope of rights – and you will have a representative, advocate, or power of attorney conduct the day-to-day documentation and follow-ups.
Ask yourself:
- Are there liens, levies, garnishment – imminent – or already in place?
- Is the general IRS proposing large penalties – and you are considering pursuing penalty abatement?
- Will you appeal or petition, or will you receive a formal legal notice?
- Do you need to seek confidentiality while discussing sensitive factual matters or previous tax filings?
- Are you contemplating a settlement, such as an offer in compromise, which may request exhaustive financial disclosures?
If you need local help – you can contact:
Cumberland Law Group, LLC
Fayetteville St. #1100
Raleigh, NC 27601
Choosing the Right Option
Use a tax advocate when your primary issue is access, delay, or routine account correction. Engage a tax attorney for additional exposure or more significant issues like contested audits, large, accrued balances, or if you need legal advice which is privileged. For many taxpayers, a team approach where the attorney sets the strategy – while the representative implements will be the solution. Regardless of which route, try to act early. Good records, honest responses, and having a plan, will lower your hassle, address your rights, and get you aiming towards a durable resolution with the IRS.
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