When Can (and Should) You Hire a Lawyer To Deal with the IRS?

When do you have the right to hire a New Jersey tax lawyer to deal with the Internal Revenue Service (IRS) on your behalf? The answer is much simpler than most people think. While there are complex and nuanced rules about when defendants in criminal matters have the right to representation, you have the right to representation any time you are dealing with the IRS.

The IRS and Taxpayers’ Right to Legal Representation

The IRS discussed taxpayers’ right to legal representation in a recent Tax Tip published on November 1, 2021. As the IRS plainly states, “Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS.”

Unlike most tax-related issues, there are no caveats. There are no exclusions. If you are dealing with the IRS in any capacity, you have the right to hire a lawyer to advise you and communicate on your behalf.

When Should You Hire a Lawyer to Deal with the IRS?

So, you have the right to legal representation when dealing with the IRS. When should you exercise this right and hire a New Jersey tax lawyer?

Not all IRS matters require legal representation. For example, if you receive a letter asking you to clarify something in your federal returns and you are able to provide the requested clarification without risk of additional liability, this may be something you can handle on your own. With that said, you should not hesitate to contact a lawyer if you have any questions or concerns.

But, in many cases, it will be advisable to hire a lawyer to represent you. For example, the following are all examples of potentially complex and high-risk matters with which a tax lawyer can help:

• Responding to an IRS audit
• Responding to an IRS CI investigation
• Addressing foreign asset disclosure violations
• Addressing other reporting and tax payment deficiencies (i.e. failure to report taxable income)
• Rectifying past filing mistakes (i.e. improperly claiming a charitable or business deduction on a prior year’s return)

Many tax law violations carry steep penalties. While most tax law violations are civil in nature, serious violations can potentially lead to criminal prosecution. 

Additionally, once you discover that you made a mistake on a prior return, failing to correct the mistake promptly can significantly increase your exposure. There are options available for voluntarily disclosing past filing mistakes—but choosing the right option is essential for avoiding unnecessary liability and unwanted scrutiny from the IRS. Pursuing a settlement agreement or offer in compromise (OIC) will be an option in certain circumstances as well.

Request an Appointment with New Jersey Tax Lawyer Kevin E. Thorn

Are you dealing with the IRS? Or, are you seeking to avoid IRS scrutiny for a past filing mistake? We can help, but it is important that you contact us promptly. To schedule an initial consultation with New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, call 201-355-8202, email ket@thornlawgroup.com or contact us confidentially online now.