“Tax” is a monetary amount that becomes due by law on a purchase or on earned income (money from jobs, business, or investments). Usually the amount is determined as a percentage of the income or the purchase. The IRS, or Internal Revenue Service is a government entity that pursues earned income of every employee and business that makes money in the United States. It has unique legal standing. Its legislative power, that is, “its power to make and enforce laws” comes from itself, which makes it difficult to contradict its decisions without legal representation.
Income tax attorneys can assist in the filing of taxes to begin with and in looking after the interests of the filer when facing the IRS or other revenue agency in an investigation. Tax lawyers can also help in dealing with IRS penalties associated with failure to file, mistakes or misrepresentations on filings, and perhaps even “abating” penalties altogether. If not avoiding penalties altogether, they can sometimes make an “offer in compromise” (OIC) that reduces the amount the IRS is willing to accept to settle the matter.
When the IRS or the State makes a mistake, even a seriously negligent one, there is often no penalty to them. This is certainly not the case for tax filers. Tax attorneys can help reduce through their knowledge of “the system” penalties placed on tax return filers or non-filers. There are some protections afforded to tax payers under certain Privacy Acts and tax lawyers can explain how these help when fighting the IRS or similar agency.