When You Need Expert Help: 3 Signs It’s Time to Hire a Tax Relief Professional

when to hire a tax professional

When it comes to handling your finances, there’s only one person who truly has your best interests at heart – and that person is you. While making your own financial decisions can provide you with peace of mind and prevent costly mistakes, there are some instances wherein taking the do-it-yourself route can cause you more harm than good. This is especially true when dealing with the IRS and back taxes. If you are facing an IRS problem, hiring a tax professional is the best way to go. 

We have clients who come to us after they attempted to handle their taxes on their own, only to raise red flags with the IRS, face audits, or get hit with a massive tax bill they could not afford to pay.  Others tried to set up an installment plan on their own. However, the DIY approach often resulted in mounting penalties and interest, leaving them stuck in an endless cycle of compounding debt. 

The truth is, dealing with the IRS requires a specialized set of skills that even most tax preparers and CPAs don’t possess. This is where tax resolution specialists come in. They have the expertise to guide you through complex tax problems and create a solution that works for you.

When should you consider hiring a tax resolution professional?

There is no room for errors when it comes to taxes. Errors can result in significant issues with the IRS, such as audits and penalties. If you are in trouble with the IRS, seeking professional help is your best choice. 

Here are three instances when hiring a tax pro or a tax relief firm like ours is the only way to go:

When You Received a Huge Windfall

Winning the lottery or being a recipient of a significant inheritance is exciting. However, major windfalls come with serious tax implications. Even if you know how to handle your finances, it’s always wise to seek professional advice. 

If you take the DIY route and make a mistake, you could end up paying more taxes than necessary. That’s not the only risk, though. Mishandling your windfall could disrupt your asset allocation, affect financial aid for your college-bound children, and potentially cause more issues in the future.

When You Have Existing Tax Issues with the IRS

If you are facing tax problems with the IRS, attempting to resolve these issues on your own can be risky. It is generally not advisable to represent oneself before the IRS. Just as you would not represent yourself in court without a lawyer. A single mistake could have serious financial consequences, including additional penalties and interest.

If you receive a notice from the IRS, it is important to act quickly. However, do not let your desire for an immediate response outweigh the need for professional guidance. Hiring an enrolled agent, CPA, or attorney trained in tax relief is the best way to protect your rights and negotiate a fair resolution.

When You Have Assets to Protect 

When you owe taxes, the IRS will do everything in its power to collect what you owed them. They have the power to levy your bank account, garnish your paycheck, and put a lien on your assets. This includes your real estate, personal property, and financial assets. This can put everything you have worked so hard for in jeopardy.

A tax relief professional can advocate on your behalf and help you avoid such extreme measures. They can negotiate with the IRS and may even be able to remove a lien or levy. If you have assets that you cannot afford to lose, hiring a tax relief professional is the best way to go.

The Bottom Line

Even if you feel confident in your ability to do DIY or believe your tax problem is minor, it is always a good idea to seek a second opinion. Seeking the advice of a tax resolution specialist can provide peace of mind if you are doing everything correctly, or help you prevent making a costly and irreversible mistake if you are not. Additionally, you may discover that you can settle your tax liabilities for significantly less than what you owe.

If you find yourself in trouble with the IRS, our tax resolution firm is available to help. We offer a free, no-obligation confidential consultation to discuss your options and develop a permanent solution to your tax issue.

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