“Certainty? In this world nothing is certain but death and taxes,” said Benjamin Franklin, in the 1700s. As long as there are taxes, there will certainly be a need for tax lawyers. Whether an individual is filing their own income taxes or is a small business or a large corporation, navigating intricate income tax forms can be challenging. Electronic filing may have eased the burden for some, but continual changes to tax laws can make staying on top difficult and stressful.
For private citizens there can be a confusing mix of deductions, taxable income, varied sources of income, pensions, unemployment insurance, tax benefits, local state and provincial, credits, taxes and deductions, and more.
Taxes are governed by certain laws. In the United States, the Internal Revenue Service (IRS) is the nation's tax collection agency and administers the Internal Revenue Code enacted by U.S. Congress. In Canada, the Income Tax Act is handled by the Canada Revenue Agency.
This is the venue where tax lawyers (also known as tax attorneys) can help. They don't necessarily fill out taxes for a client; accountants might be a better choice on this task. Tax lawyers can assist individuals and companies of all sizes to deal with the United States Internal Revenue Service, Revenue Canada and state and provincial revenue department when tax problems occur.
Tax Problems
In the fluctuating international financial climate, greater pressures are being placed on citizens and government agencies to steer a path through economic uncertainty, and taxpayers are feeling the pinch.
In a Jan. 6, 2010 media release, “National Taxpayer Advocate Nina E. Olson released her annual report to U.S. Congress, warning that increased demands on the IRS have eroded the agency’s ability to meet taxpayer service needs, and expressing concern that IRS collection practices are harming financially struggling taxpayers without producing significant revenue gains. The report designates the IRS’s declining ability to answer telephone calls as the most serious problem facing taxpayers. “This level of service is unacceptable,” Olson wrote.
In Canada, for example, a proposed July 2010 introduction of new HST ( Harmonized Sales Taxes) has ignited a veritable tax revolt with private citizens and small businesses signing anti-tax petitions.
Tax Lawyers, Tax Attorneys: What Can They Do?
Tax lawyers assist clients in resolving their tax debt issues. This often means helping a client with an income tax audit. Using a tax lawyer's knowledge, may mean reducing potential fines and/or removal of liens. Since tax laws change every year, tax lawyers must also stay up-to-date with their tax knowledge.
Here are some specific areas where they can help:
- Unfair notice of assessment or re-assessment
- Failure to report income
- Missed tax filing deadlines
- Negotiation of a payment plan
- Tax audit and objections
- Income tax appeals
- Resolution of assessments
- Foreclosure assistance
Clients suffering from income tax problems can get help from a tax lawyer. Most lawyers offer free initial consultations to evaluate the merits of a case before proceeding.
Sources:
IRS, Canada Revenue Agency, American Bar Association, Canadian Bar Association.
Bev Yaworski - Bev Yaworski is a published writer and photographer for magazines such as Green & Organic Lifestyles, various parenting publications such ...
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