When Taxpayers receive an IRS notice, most don’t immediately know where to start. A quick online search often brings up dozens of advertisements from nationwide tax relief companies promising quick and guaranteed solutions, which can make it difficult to determine what type of help is actually needed, and what expectations should be. If you owe back taxes or are behind on filing returns, here are some suggestions on where to start as you discern your Tax Resolution options – tax resolution companies vs. a tax lawyer.
What many Taxpayers don’t realize is that tax issues carry legal risk. The IRS doesn’t operate as a single department. Its civil side handles audits, collections, and payment plans, while its criminal enforcement division, IRS Criminal Investigation, investigates potential tax crimes. Most cases remain civil, but certain red flags can trigger escalation. Multiple unfiled returns, significant underreported income, unpaid taxes, false statements, or undisclosed assets or accounts can shift a case from simple negotiation to risk management. Even in civil resolution matters, a tax attorney’s role goes beyond simply negotiating a payment arrangement. Attorneys can help ensure that taxpayers are complying with applicable tax laws and IRS regulations while carefully evaluating all available resolution options in light of the client’s best interests. This broader legal perspective can help avoid unintended consequences and ensure that decisions made today do not create additional problems later.
A key difference between hiring a tax resolution company and hiring a tax attorney is attorney-client privilege. Conversations with a lawyer are legally protected, meaning discussions remain confidential and, in most cases, the attorney cannot be compelled to testify against you. That protection does not apply in the same way with non-attorney representatives. When sensitive financial information is involved, that distinction can matter.
Another important consideration is the type of representation you receive. Nationwide tax relief companies often focus on high-volume cases, and focus on simple payment plans, non-collectible statuses, etc. While many provide helpful services, their role is generally limited to administrative negotiation with the IRS, and they may sometimes not thoroughly examine all the issues and options. If a case is complex or involves potential legal exposure, the taxpayer should seek legal counsel, because a tax resolution law firm, by contrast, can handle those same negotiations while also evaluating potential legal issues from the beginning. Tax attorneys are licensed to practice law, are governed by professional and ethical obligations, and can represent taxpayers before the IRS and the United States Tax Court. That means the same team assisting with a resolution strategy can also provide legal protection and representation if a dispute develops or the matter escalates.
In simple terms, many tax relief companies focus on bringing in a high volume of cases and negotiating a standard resolution in every case. A tax law firm is equipped to negotiate and protect your legal interests.
At Bryson Law Firm, LLC, our team of attorneys address both all sides of tax problems. This integrated approach allows us to guide clients through IRS negotiations every step of the way.
