When Do You Actually Need a Tax Attorney?

Most people with IRS problems don't need a tax attorney. A CPA or Enrolled Agent can handle a basic installment agreement, prepare unfiled returns, or respond to a simple audit notice. If your situation is straightforward, save the money.

But some situations require an attorney. If you get this wrong, the consequences are severe.

You Need an Attorney When:

The IRS is threatening criminal prosecution. If you've received a target letter, if CID (Criminal Investigation Division) has contacted you, or if your accountant tells you there's a fraud issue, stop talking to everyone except an attorney. Only an attorney can provide attorney-client privilege. Anything you tell a CPA or EA can be subpoenaed.

A Revenue Officer is assigned to your case. Revenue Officers have personal authority to seize assets, close businesses, and file liens. They're aggressive, they're experienced, and they know most taxpayers will fold under pressure. An attorney changes that dynamic. Read more: Why you need an attorney when an RO shows up.

You're facing the Trust Fund Recovery Penalty. This is personal liability for unpaid payroll taxes. The IRS is trying to reach through your business and take your personal assets. This is litigation, and you need a litigator.

You need to go to Tax Court. If you've received a 90-day letter (Notice of Deficiency) and want to challenge the IRS's assessment, you have 90 days to file a Tax Court petition. Miss the deadline, and you lose the right to challenge. An attorney handles this.

Your spouse is dragging you into their tax problem. Innocent spouse relief cases involve legal analysis of what you knew, when you knew it, and whether it's inequitable to hold you liable. This is legal work.

You Probably Don't Need an Attorney When:

You owe less than $50,000 and can afford monthly payments. A streamlined installment agreement requires no financial disclosure, and a CPA or EA can handle it. You have a simple audit limited to a few deductions. You need to file a few years of back returns with no criminal exposure.

If you're not sure which camp you fall in, schedule a free consultation. I'll tell you the truth about whether you need a lawyer.

32 years of IRS experience. Free consultation. I will tell you exactly where you stand and what your options are.