Tax attorneys have specialized knowledge of tax law and regulations, making them well-equipped to handle complex tax issues. They can provide advice on tax planning strategies, prepare tax returns, and represent clients in tax disputes with the Internal Revenue Service (IRS). A tax attorney can help protect you from potential legal consequences that may arise from non-compliance with tax laws. They can advise you on tax compliance issues and help you avoid costly mistakes. If you are facing an IRS audit or dispute, a tax attorney can represent you in negotiations with the IRS. They can help you reach a favorable settlement or payment plan, and may even be able to reduce or eliminate penalties and interest.
How To Choose A Good Tax Attorney in Indiana
Choosing a good tax attorney in Indiana can be a daunting task, but here are some tips to help you make an informed decision:
Look for experience: Look for an attorney with experience in tax law. You can find this information on their website or by asking them directly. An attorney with experience will be better equipped to handle your tax issues.
Check for credentials: Ensure that the attorney is licensed to practice law in Indiana and is in good standing with the state bar association. You can find this information by visiting the state bar association’s website.
Check for specialization: Tax law is a specialized area of law. Look for an attorney who specializes in tax law and has a proven track record of success in representing clients in tax-related matters.
Check for references: Ask for references from past clients and check online reviews to get an idea of the attorney’s reputation and quality of service.
Communication skills: Choose an attorney who communicates well and is responsive to your questions and concerns. They should be able to explain complex tax issues in a way that you can understand.
Cost: While cost should not be the only factor in choosing an attorney, it is important to ensure that their fees are reasonable and transparent. Ask about their fee structure and any additional costs upfront.
Seeking A Tax Attorney In Your City?
Here are the five largest cities by population in the state of Indiana, according to the U.S. Census Bureau’s estimates as of 2021:
Indianapolis – Population: 886,220
Fort Wayne – Population: 267,633
Evansville – Population: 115,587
South Bend – Population: 101,861
Carmel – Population: 100,583
Other notable cities in Indiana include Bloomington, Gary, Lafayette, Muncie, Terre Haute, and Fishers.
Common Fees For Tax Attorneys in Indiana
The fees for tax attorneys in Indiana can vary depending on the complexity of the case and the attorney’s experience and reputation. Here are some common fee structures for tax attorneys in Indiana:
Hourly rates: Many tax attorneys charge by the hour. Hourly rates can range from $200 to $600 or more depending on the attorney’s experience and the complexity of the case.
Flat fees: Some tax attorneys may charge a flat fee for certain services, such as preparing a tax return or providing tax planning advice. Flat fees can range from a few hundred to several thousand dollars.
Contingency fees: In some cases, a tax attorney may agree to work on a contingency fee basis, where the attorney’s fee is based on a percentage of the amount of money recovered in a tax dispute or audit. Contingency fees are typically around 20% to 40% of the recovery amount.
Retainers: Some tax attorneys may require clients to pay a retainer fee upfront, which is a sum of money paid in advance for the attorney’s services. The retainer fee is then used to pay for the attorney’s hourly rate or flat fee.
It’s important to discuss fees with your tax attorney upfront to ensure you understand the fee structure and what services are included. You should also ask about any additional costs or expenses, such as court filing fees or expert witness fees.
Common Individual Tax Issues
Here are some common individual tax issues that taxpayers in Indiana and across the U.S. may face:
Failure to file taxes: Failing to file taxes on time can result in penalties and interest charges.
Failure to pay taxes: If a taxpayer does not pay the full amount of taxes owed by the tax deadline, they may face penalties and interest charges.
Underreporting income: If a taxpayer does not report all of their income on their tax return, they may face penalties and interest charges.
Claiming inappropriate deductions: If a taxpayer claims inappropriate deductions, such as personal expenses or expenses that were not actually incurred for business purposes, they may face penalties and interest charges.
Identity theft: Tax-related identity theft occurs when someone uses a taxpayer’s personal information, such as their Social Security number, to file a fraudulent tax return and claim a refund.
Audits and disputes with the IRS: The IRS may audit a taxpayer’s return or dispute the taxpayer’s claimed deductions, resulting in additional taxes, penalties, and interest charges.
Tax debt: Taxpayers who owe back taxes may face collection actions by the IRS, such as wage garnishments or tax liens.
Corporate Tax Issues
Here are some common corporate tax issues that businesses in Indiana and across the U.S. may face:
Tax planning: Effective tax planning is critical for businesses to minimize their tax liabilities and maximize their tax benefits.
Accounting methods: The IRS has strict rules regarding accounting methods that businesses must follow, including inventory accounting, depreciation, and amortization.
Transfer pricing: Transfer pricing is the process of setting prices for transactions between related parties, such as a parent company and its subsidiaries. The IRS closely scrutinizes transfer pricing practices to ensure that they are at arm’s length and do not result in tax avoidance.
Tax credits and deductions: Businesses may be eligible for various tax credits and deductions, such as the research and development tax credit and the Section 179 deduction for equipment purchases.
State and local taxes: In addition to federal taxes, businesses must also comply with state and local tax laws, which can vary widely by jurisdiction.
IRS audits and disputes: The IRS may audit a business’s tax return or dispute the business’s claimed deductions, resulting in additional taxes, penalties, and interest charges.
Tax compliance: Businesses must comply with a wide range of tax laws and regulations, including payroll taxes, sales taxes, and excise taxes.
Common Tax Resolutions
Here are some common tax resolutions that taxpayers in Indiana and across the U.S. may pursue to address tax issues and liabilities:
Installment agreement: An installment agreement allows taxpayers to pay their tax debt over time in regular, manageable payments.
Offer in compromise:An offer in compromise is a settlement agreement between a taxpayer and the IRS, where the taxpayer agrees to pay a reduced amount of their tax debt.
Innocent spouse relief:Innocent spouse relief is available to taxpayers who are not responsible for their spouse’s tax liabilities and provides relief from joint and several liability for tax, interest, and penalties.
Penalty abatement: The IRS may waive or reduce penalties for taxpayers who have a reasonable cause for failing to comply with tax laws, such as a serious illness or natural disaster.
Currently not collectible status:Currently not collectible status is available to taxpayers who are unable to pay their tax debt due to financial hardship. During this time, the IRS will suspend collection activities, but interest and penalties will continue to accrue.
Audit reconsideration: Audit reconsideration is available to taxpayers who disagree with the results of an audit and provides an opportunity to present new information to the IRS.
Risks of Using a Tax Attorney in Indiana
Like any professional service, there are risks associated with using a tax attorney in Indiana. Here are some potential risks to consider:
Cost: Tax attorneys can be expensive, and their fees may vary depending on their experience and the complexity of the tax issue. Before hiring a tax attorney, it’s important to understand their fees and the scope of their services.
No guarantee of results: While a tax attorney can provide legal advice and representation, there is no guarantee that they will be able to resolve the tax issue in the taxpayer’s favor.
Potential conflicts of interest: Tax attorneys who also provide tax preparation or accounting services may have conflicts of interest, as they may be incentivized to minimize a taxpayer’s tax liability without regard for the taxpayer’s overall financial goals.
Ethical concerns: Tax attorneys, like all attorneys, are held to ethical standards of conduct. If a tax attorney engages in unethical behavior, it can lead to legal and financial consequences for both the attorney and the taxpayer.
Inadequate representation: If a tax attorney is not experienced in a particular area of tax law or is unfamiliar with the taxpayer’s unique circumstances, they may provide inadequate representation that fails to fully address the tax issue.
When Do You Really Need a Tax Attorney?
If you are accused of tax fraud or evasion, it is in your best interest to hire a tax attorney. A tax attorney can represent you in legal proceedings and help you navigate the complex criminal and civil penalties that may apply. If you have a complex estate, it is also recommended to hire a tax attorney. A tax attorney can provide guidance on how to minimize estate taxes and transfer assets to heirs in a tax-efficient manner.
When is a Tax Relief Company Better Than a Tax Attorney?
Tax relief companies and tax attorneys offer different services. Tax relief companies specialize in negotiating with the IRS and states on behalf of taxpayers who owe back taxes, penalties, and interest. These companies often have a team of tax professionals, including enrolled agents and tax preparers, who work to negotiate payment plans or settlements with the IRS. They may also provide assistance with preparing and filing tax returns, obtaining tax transcripts, and addressing other tax-related issues. There are situations where a tax relief company may be more beneficial than a tax attorney. Here are a few examples of where a tax relief company may be a better option:
Your tax debt is under $250K: If you owe less than $250K to the IRS, a tax relief company may be a better option than a tax attorney. Tax relief companies can negotiate with the IRS to reduce or eliminate penalties and interest, and set up an affordable payment plan that works for you.
You need help with tax preparation: Tax relief companies often offer tax preparation services, which can be beneficial for individuals or businesses who need help filing their taxes correctly. This can help you avoid future tax problems and penalties.
You want to avoid the high cost of a tax attorney: Tax attorneys can be expensive, and their hourly rates can quickly add up. A tax relief company may offer more affordable options, such as a flat fee for their services.
There are several benefits to using an experienced tax relief firm to help resolve tax issues:
Expertise: An experienced tax relief firm will have in-depth knowledge and understanding of tax laws and regulations, as well as the procedures and processes involved in resolving tax issues. This expertise can help taxpayers navigate the complex and often confusing world of tax law.
Comprehensive solutions: A reputable tax relief firm will offer a range of services to help taxpayers resolve their tax issues, from negotiating with the IRS to tax planning and compliance. They can provide tailored solutions to meet each client’s unique needs.
Faster resolution: A tax relief firm with experience can often resolve tax issues more quickly and efficiently than taxpayers who try to navigate the process on their own. They have the knowledge, resources, and relationships with the IRS to expedite the process.
Reduced stress: Tax issues can be stressful and overwhelming for taxpayers. By using an experienced tax relief firm, taxpayers can have peace of mind knowing that their tax issues are being handled by professionals.
Better outcomes: With an experienced tax relief firm on their side, taxpayers may be able to achieve better outcomes than they would on their own. The firm can negotiate with the IRS to reduce tax liabilities, eliminate penalties, and resolve other tax issues in the taxpayer’s favor.
CuraDebt Tax Is At Your Service
If you are a resident of Indiana who needs help resolving tax debt issues, we are here to help. We have 22 years of experience helping clients with numerous tax related issues. Contact us toll free today for your free consultation. Or submit here online for a free consultation. We will find the best resolution available to you based on your financial situation. 1-877-999-0486