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How To Tell When You Should Hire A Lawyer For Taxes
Get the legal advice you need without the hourly legal fees
Key Takeaways
You should probably consult with a lawyer if your tax issue involves a complex audit, a significant amount of money, tax collection actions, or legal tax questions.
Editor's note: This post was originally published on November 5, 2021, and has been updated for accuracy, comprehensiveness, and freshness on April 30, 2026.
Tax season brings a specific kind of stress for many people—especially when things get complicated. Whether you’re a small business owner, a freelancer, someone with multiple income sources, or dealing with a significant life change, there are times when doing your own taxes or relying on basic software just isn’t enough.
Here’s how to know when it’s time to bring in a lawyer for your tax situation.
When a tax professional isn’t enough
Accountants and CPAs are excellent at preparing and filing returns, optimizing deductions, and advising on financial strategy. But tax law—especially when it intersects with business law, estate planning, or dispute resolution—often requires legal expertise.
A tax attorney can represent you before the IRS, advise on legal strategies to minimize liability, help structure transactions to reduce tax consequences, and represent you if you face an audit or tax court proceeding.
Signs you may need a lawyer for taxes
You’re being audited by the IRS
If the IRS has selected your return for examination, having an attorney can be valuable—especially if the audit is complex, involves business income, or raises the possibility of significant back taxes, penalties, or interest. An attorney can represent you in communications with the IRS and help protect your rights throughout the process.
You owe a significant amount to the IRS
If you have a large tax debt, a tax attorney can help you explore resolution options such as an Offer in Compromise (settling for less than you owe), an installment agreement, or currently-not-collectible status. These are complex processes where legal guidance can make a meaningful difference.
You’re starting, buying, or selling a business
Business transactions have significant tax implications. An attorney can help structure a deal in a way that minimizes your tax exposure and ensures the transaction is legally sound.
You have significant foreign income or assets
Tax obligations related to foreign income, foreign bank accounts, and international transactions are among the most complex areas of tax law. Failing to properly report foreign assets can result in substantial penalties.
You’re dealing with an estate with tax consequences
Estate and inheritance taxes, distributions from retirement accounts, and the sale of inherited assets all have potential tax consequences. An attorney with estate planning expertise can help you navigate these issues.
You’ve received a notice from the IRS
Not all IRS notices require an attorney, but if you’ve received a notice of deficiency, a notice of levy, or any indication that the IRS intends to take legal action, consulting an attorney promptly is wise.
How LegalShield can help
LegalShield members have access to provider lawyers who can advise on tax-related legal matters, review IRS correspondence, and help you understand your options. While LegalShield provider lawyers are not tax preparers or CPAs, they can provide legal guidance on situations where the law and your taxes intersect.
Explore LegalShield personal plans to learn more about how members access legal support for tax and other matters.
Frequently Asked Questions
A tax lawyer helps their clients with legal matters. This can include matters from unpaid taxes to representing clients in court. Unlike a CPA, a lawyer focuses on tax questions involving the law, not principles of accounting or finances.
Small businesses should consider hiring a lawyer if they’re facing a large tax bill that they disagree with. Even if they agree they owe the unpaid tax balance, if they can’t pay it off in full, a lawyer can help find alternative payment arrangements or even settle the tax debt for less than the full amount.
A lawyer is also helpful if the small business has certain tax issues. For instance, the business might have several years’ worth of unfiled tax returns or new tax obligations the business doesn’t fully understand.
Some lawyers offer free consultations. Before the consultation, you can write out a list of questions to ask, as well as bring relevant tax or financial documents to reference during the consultation. After the consultation, feel free to follow up with any additional questions if you’re still not comfortable after the initial consultation. Be prepared though that the lawyer may not give you legal advice about your specific case at your consult, but instead discuss processes with you.
This is a difficult question to answer. It depends on the facts of your case, your comfort level with risk, and your familiarity with tax law. Yet nothing beats the peace of mind of having a tax professional examine your case and explain what’s going on and what you need to do next.
If you’re not sure if you should hire a lawyer, you can still schedule a free consultation with a lawyer to help you decide.
Get the Answers You Need, When You Need Them
Author
Elyse Dillard
Content Specialist at LegalShield
Content Specialist at LegalShield, creating educational resources about legal and consumer protection topics. She focuses on making complex legal and financial concepts accessible to readers and has contributed to various educational articles on consumer rights and protections.
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