Do I need a tax attorney? IRS Audit indicates huge back taxes resulting from debt forgiveness on short-sale.

Asked over 1 year ago - Sacramento, CA

We were forced to move for work and couldn't sell the house. As such, we rented it for 9 months in order to avoid forclosure. Taxes were prepared by HRB and they've been working with IRS. They have not yet "appealed", but I would like to know if its time to cut them loose and hire a tax attorney. Thanks in advance.

Additional information

Per the first reply (thanks!), I thought it prudent to indicate that the HRB reprentative is an EA. His services came as a result of HRB's Audit Defense protection.

Attorney answers (3)

  1. Phillip Monroe Smith

    Contributor Level 18


    Lawyers agree


    Answered . You probably need to a have professional review your tax returns and audit notices, and determine if you are being properly represented.

    Good luck!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  2. Andrew B Gordon


    Contributor Level 11


    Lawyers agree


    Answered . You should really hire a competent tax attorney who is experienced in audits and appeals. Often accountants are ill equipped to handle tax controversies. A competent attorney can be well worth the price. Please let me know if I can be of any further assistance.

    Andrew B Gordon, Esq., CPA

    Andrew B Gordon is a CPA and attorney licensed to practice law in Illinois. The information provided here is for... more
  3. Henry Daniel Lively

    Contributor Level 20


    Lawyers agree


    Answered . Most tax services are ill equipped to handle your tax controversy matter and are in a conflict of interest with you to begin with. Hire a competent tax attorney to represent you or at least review what has been done already. It will be well worth the money spent.

    Call me if you would like a free consultation to review your situation or just talk about this further.

    H. Daniel Lively, Esq., LL.M., CPA Certified Tax Specialist, CA Board of Legal Specialization dlively@... more

Related Topics


There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

Buying a short sale

A short sale is an alternative to foreclosure in which you sell property for less than you owe on it, and your lender agrees to forgive the remaining balance.

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