Quick answer: You need a tax attorney when a tax problem has moved beyond return preparation: an audit, a levy or lien, years of unfiled returns, unpaid business payroll or sales tax, a Notice of Deficiency with a 90-day Tax Court deadline, or any contact about a criminal tax matter. A tax controversy attorney represents you before the IRS and state agencies, protects communications through attorney-client privilege, and can take a case to court.
A "Tax Crisis"™ overwhelms a person. It exceeds their personal experience and debilitates them emotionally, financially and at times even physically. Most people in a Tax Crisis™ start with the same search: a tax attorney. Circle of Tax Advisors has represented individuals, business owners and tax preparers since 1981. This page explains when you need a tax attorney, what our team does, and how we work with clients across the country.
Key Takeaways
- Tax controversy attorneys handle audits, collection, appeals and litigation, not only planning.
- Attorney-client privilege matters most when criminal exposure is possible.
- Attorneys, CPAs and enrolled agents can all represent you before the IRS; attorneys can also litigate.
- The IRS and state agencies run separate deadlines, and one does not wait for the other.
- Once a power of attorney is filed, the agency contacts your representative instead of you.
When You Need a Tax Attorney Instead of a Tax Preparer
Certainly, tax attorneys help you plan and deploy short- and long-term tax planning strategies. But a tax controversy attorney has advocacy and trial talents that focus on people in a "Tax Crisis"™. Use them when:
- the IRS or a state treasury department has selected your return for audit,
- you have received a notice of intent to levy, a lien notice, or a final assessment,
- your wages or bank account have been levied,
- you have several years of unfiled returns,
- you owe more than you can pay within a few months,
- your business is behind on payroll, sales or withholding tax,
- the IRS or state wants to hold you personally responsible for business employment taxes,
- you have received a Notice of Deficiency and have 90 days to petition the U.S. Tax Court, or
- a federal agent has contacted you about a criminal tax matter.
In the last situation, get the advice of a tax controversy lawyer before you answer any questions. Communications with an attorney are protected by attorney-client privilege, and that protection matters most where criminal exposure is possible.
Why a Combined Team Matters
Tax disputes have a legal side and an accounting side. Most firms offer one or the other. Our team includes tax attorneys, CPAs and enrolled agents, so a single case can be handled from the first notice through appeal and, where needed, into court.
- Attorneys handle strategy, privilege-sensitive matters, appeals and litigation, including the U.S. Tax Court.
- CPAs rebuild records, prepare and correct returns, and analyze financial statements.
- Enrolled agents are federally licensed to represent taxpayers before the IRS and manage a large share of examination and collection work.
You deal with one firm, and the work is assigned to the professional who fits the task.
How We Help Taxpayers
IRS and state audit defense
An audit is a request for proof, and how the proof is presented shapes the outcome. Our Tax Audit Defense service covers notice review, document preparation, all communication with the examiner, negotiation of the findings, and appeal. In most cases you never need to meet the auditor yourself.
Tax debt, levies and liens
Our Tax Advocacy service deals with collection: stopping or releasing wage and bank levies, penalty abatement, installment agreements, hardship status, offers in compromise, lien withdrawal and subordination, and Collection Due Process hearings.
State Treasury disputes
State cases follow their own rules, and state audits can continue when IRS audits continue. We handle informal conferences, appeals to state administrative tribunals and state courts, state payment plans and state offers in compromise. Read more on our page about State Treasury collections.
Unfiled returns and compliance
Missing returns block almost every form of relief. Our Tax Preparation and Planning team reconstructs income and expenses, prepares the returns that need to be filed, and replaces IRS-prepared substitute returns with accurate ones.
Business tax problems
For business owners we handle payroll tax debt, trust fund recovery penalty investigations, sales and use tax audits, worker classification disputes and Employee Retention Credit examinations. See our ERC conference page and our Business Consulting service.
Estate and death tax planning
Tax exposure does not end with income tax. Our Estate and Death Tax Planning service helps families plan transfers, reduce tax at death, and resolve tax issues that surface during an estate administration.
Defense for tax preparers
We also represent tax professionals themselves in preparer penalty cases, due diligence audits and IRS Office of Professional Responsibility matters.
Not sure which service you need? Most clients are not. Bring the letter you received to a first conference and we will tell you which stage you are at, what your deadlines are, and what each option would involve. Book a confidential conference.
What Is Different About State and Other Local Tax Problems
Local knowledge has practical value in tax cases.
- Two agencies, two clocks. IRS letters often come from the IRS campus that serves the region. State letters are issued by the treasury department or a private third-party collection agency. Each has its own deadlines, and one does not wait for the other.
- State appeals are short. State appeal periods may vary, but each must be met. Don't waive those rights.
- City income taxes. City and other local tax authorities have their own rules and operate independently of your state or the IRS.
- Business owner liability. Cities, other local tax authorities, states and the IRS can hold corporate officers, owners and employees personally responsible for unpaid sales, use and withholding taxes. All must be taken seriously, and acted on immediately.
- Federal appeals. Appeals from IRS administrative hearings go to the U.S. Tax Court or U.S. District Courts, and thereafter can be appealed to the U.S. Circuit Courts and the U.S. Supreme Court.
How Working With Us Goes
- First conference. We review your notices and the facts, in person, by phone or by secure video.
- Written scope. You receive a clear description of the work and its cost before anything begins.
- Authorization. You sign a power of attorney. From that point the IRS and the State Treasury contact us, not you.
- Investigation. We obtain your transcripts and records and find out exactly what the government has on file.
- Strategy and action. We file what must be filed, respond to what must be answered, and negotiate.
- Resolution and follow-up. We confirm the result in writing and help you stay in compliance.
Areas We Serve
We represent taxpayers from coast to coast.
What to Bring to Your First Conference
- every IRS and State Treasury letter you have received, with the envelopes if possible,
- the tax returns for the years in question, if you have them,
- recent pay stubs or business income records,
- recent bank statements,
- a short list of dates: when the problem began and what you have already done, and
- a statement about what caused the tax problem.
If you do not have these, come anyway. We can obtain most of them from the agencies.
Deadlines decide tax cases. A hearing request that is one day late can cost you the right to stop a levy. If a letter gives you a date, contact us well before it. Call 517-336-7824.
Attorney, CPA or Enrolled Agent?
| Professional | Strongest at | Represents you before the IRS? |
|---|---|---|
| Tax attorney | Strategy, privilege, appeals, Tax Court and criminal tax matters | Yes |
| CPA | Rebuilding records, preparing and correcting returns, financial analysis | Yes |
| Enrolled agent | Examinations and collection cases before the IRS | Yes |
Checklist: What to Do First
- Gather notices and tax years.
- Identify deadlines and court involvement.
- Ask who will handle each workstream.
- Get scope and fees in writing.
Speak With Us
Call Circle of Tax Advisors at 517-336-7824 or book a confidential conference online.