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Just received a large tax bill from the IRS for 2011. I disagree with the amount: should I contact the IRS directly and submit

Santa Clarita, CA |
Filed under: Debt

a statement or should I retain a lawyer from the outset? I'm a paralegal, but I'm not familiar with Tax Law. I had a employment settlement in 2011 that was reported to the IRS. Is it cost effective to retain a lawyer after exhausting the IRS procedures for appeals or from the outset.

Attorney Answers 4


  1. Trying to represent yourself in front of the IRS is like representing yourself in court - you'll soon find out you have an idiot for a client. The more money involved - the more you need help. Hire someone - you will not regret it.


  2. I agree you should consult and retain a tax attorney, enrolled agent, or CPA depending on the issues involved. I suspect your entire "employment settlement" is being treated as income. Qualified professional help is what you need. Good luck.

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  3. The taxability of employment issues can be tricky. You definitely should have a tax lawyer review this. Also, it is much better to have a tax lawyer negotiate for you than to do it yourself.

    Good luck!

    Ron Cappuccio
    www.TaxEsq.com

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.


  4. You should speak with a tax attorney. It could be that the IRS is correct. Employment settlements are not per se excluded from income. They are only excluded if they are compensation for physical injury.

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