are tax attorneys worth it??

[amyjrn]

What is the name of your state (only U.S. law)? TX

What exactly can a tax attorney do for you. A friend of mine owes approx $16,000 in taxes from 2004. I'm not sure how much of that is penalties and interest. Can a tax attorney really lower that amount?

 

[FlyingRon]

That would depend on the situation. A tax professional (either an attorney or a CPA could do the following):

1. Find out if any of the amount in question is in error and amend/correct that.
2. Work out a payment plan with the IRS (of course you could do that yourself).
3 If you are beyond payment (indigent) possibly get an OIC (reduction).

Despite the advertisements the latter is not going to happen unless the IRS determines your financial situation is so dire they won't get the full owed amount even spread over time.

#1 depends on whether there are facts or interpretation of the tax code in doubt.

 

[LdiJ]

That would depend on the situation. A tax professional (either an attorney or a CPA could do the following):

1. Find out if any of the amount in question is in error and amend/correct that.
2. Work out a payment plan with the IRS (of course you could do that yourself).
3 If you are beyond payment (indigent) possibly get an OIC (reduction).

Despite the advertisements the latter is not going to happen unless the IRS determines your financial situation is so dire they won't get the full owed amount even spread over time.

#1 depends on whether there are facts or interpretation of the tax code in doubt.

An experienced EA could do the same as well. Its not necessary to spend thousands of dollars to get professional help.

DO NOT use one of the "offer mills" you see advertised on TV. They will charge you 4-6 thousand dollars with only a minimal chance of getting any better results than you could get almost on your own.

 

[Mass_Shyster]

The debt may be dischargable in bankruptcy.

 

[tranquility]

I'd stick with a specialist when dealing with OIC. Certainly not those on TV (I think Ms. Roni has been disbarred or turned in her card and is in the deepest of the deep hot water for her actions.), but someone with experience and training in the process.

Attorneys are useful when there is tax court in the future, if the men in suits and ties come to the door rather than just in ties, or in preplannig where there will be some manipulation of independent entities for tax and business purposes.

For $16K? I don't know the underlying issues or if an attorney is needed. Just getting a representative does not mean the tax burden will be reduced. There must be VALID reasons.

 

[FlyingRon]

I'd stick with a specialist when dealing with OIC. Certainly not those on TV (I think Ms. Roni has been disbarred or turned in her card and is in the deepest of the deep hot water for her actions.), but someone with experience and training in the process.

She surrendered her license in advance of the disbarment, but as you stated, she's out of the business as of last May. JKHarris is the subject of a LOT of complaints as well (and the guy gives me the creeps the way he always insist on putting his hands on his agents during the commercial ). The Texas attorney general filed against him for misrepresentation and they "settled" in May as well.