The Use of a Tax Professional Is an Important Business Decision

Written by Adam Peck Category: Injury Law January 15th, 2013 3 min read

Whether or not to utilize a tax professional such as a Tax attorney is an important decision. Here are some things to consider:

1. Huge agencies. The tax agencies are massive organizations with many highly trained professionals on their side. Despite any hype to the contrary, they are there to collect taxes–not to provide independent counsel to taxpayers.

2. Tax return filings. Taxpayers are required to prepare and file their own tax returns. Even if the taxpayer is well educated and informed, the tax codes are vast and complex. Even tax attorneys struggle to keep up. Thus trying to prepare your own return is not a good idea unless it is very simple such as a wage earner with no special income or deductions. Even then it would be wise to utilize tax software.

3. Tax avoidance. Taxpayers have a legal right to arrange their affairs in such a manner to minimize tax liabilities. This is called tax planning or tax avoidance and is highly advisable for taxpayers that are self employed, have a high net worth or otherwise complex tax situations. There are many legal ways to reduce taxes such as charitable donations, tuition fees, savings plans, estate planning, asset depreciation and so on.

4. Tax evasion. Taxpayers are required by law to file tax returns, not cheat on the accounting and pay taxes due. Failure to do this could result in criminal proceedings for tax evasion. It would be very wise to engage an experienced tax attorney if the IRS is contemplating this route. Dealing with the CID (criminal investigation division) is no small matter.

5. Overdue taxes. The IRS (for federal taxes) and the Franchise Tax Board (for California taxes) are basically collection agencies. Once a tax return is filed with tax due, the tax agency collection procedures kick in to full gear. In a very short time, they will take very aggressive action to collect any taxes due including tax liens, bank account liens, asset seizure and wage garnishment. There are a number of remedies such as negotiating installment agreements and offer in compromise.

Taxpayers looking to solve tax problems would be wise to engage an experienced tax attorney. Steven Peck’s Premier Legal has a tax attorney on staff servicing clients in the San Fernando Valley and all of Southern California. Premier Legal has the proven knowledge and skill to effectively represent taxpayers when dealing with the IRS or the Califoria State Franchise Tax Board.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.