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

    6

    Lawyers agree

    1

    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
    www.culvercitytaxandbusinesslaw.com
    www.corporateattorney.com
    www.worlclasslawyers.com

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

    Pro

    Contributor Level 11

    5

    Lawyers agree

    1

    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
    Www.ILtaxattorney.com

    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

    3

    Lawyers agree

    1

    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

Debt

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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