NJ Tax Attorney Near You

Mostly, the IRS selects tax returns for audits in two ways: (1) random selection and computer screening and (2) based on related tax returns. In most cases, if you are being audited, it is because the IRS has randomly chosen your tax return and compared it against “norms” that it developed based on a sample of tax returns. Alternatively, if someone whose tax returns are linked to yours is being audited, such as a business partner, you may also be audited. IRS audits are either conducted via mail or through an in-person interview.

If you are notified that you are being audited, do not panic. The best way to deal with an audit is by working with a New Jersey IRS audit tax lawyer. Your attorney can help you develop a strategy to limit the number of items the auditor examines and the number of years under audit. They can also help you organize your financial information to increase the likelihood of a favorable outcome.

While there are many advantages to using an accountant when preparing your taxes, if you have tax issues with the IRS or the state of New Jersey, there are significant advantages to being represented by an attorney instead of an accountant. First, your communications with a lawyer are protected by the attorney-client privilege. Although there is a limited federal accountant-client privilege, that privilege goes away if the IRS decides to bring criminal charges against you. Sometimes, your accountant may even be called a witness against you in a tax fraud case.

Second, tax attorneys have extensive training in federal and state tax law. This is critical given the complexity of American tax law. According to the National Taxpayer Advocate, there is an average of one change to the tax code daily. A tax lawyer can analyze the tax code and the IRS attorneys’ interpretations of the law, court rulings on tax law, and various U.S. Treasury regulations. They can then provide specific legal advice based on your situation and applicable federal and state laws.

There are many reasons why you might want to retain a tax attorney. For some people, having a complicated tax situation—such as foreign assets—is enough reason to work with a law firm specializing in tax issues. In other cases, you may need one if:

• You are being audited by the IRS or by the state of New Jersey;
• You have committed tax evasion (tax fraud);
• You owe a large amount of back taxes to the IRS or the state, and are interested in an offer in compromise, payment plan, or an installment agreement;
• You have unreported foreign bank accounts or assets;
• You have failed to pay state and/or federal payroll taxes on time;
• You are undergoing a New Jersey, New York, or California residency audit or need a state tax relief consult.

But how much is a tax attorney? Unfortunately, that's going to depend on the complexity of your situation. Whatever your situation, if you are experiencing a major tax problem, contact us as soon as possible. By being proactive, you may be able to avoid more serious consequences related to tax issues.

If you owe money to the IRS, then you may be able to reduce your tax debt. We can explore several options with you based on your specific situation. This may include submitting an offer in compromise, appealing the amount owed, requesting innocent spouse relief, or even analyzing whether all or part of the tax debt falls outside the tax debt collection statute of limitations.

In some cases, it may not be possible to have your tax debt reduced. If you cannot reduce your tax debt, your tax lawyer can help you decide how to handle the matter best. You may be able to set up an installment agreement or payment plan, consolidate your tax debt, or use another method to tackle your tax debt. Contact us to see what options are available for you.