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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 Tax law

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

Posted

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.

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Posted

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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Posted

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

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Posted

Thank you very much....it is indeed tricky. My only concern is that it costs more for the lawyer than the tax bill it seems. I've been quoted some pretty extravagant amounts.

Posted

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.

Christopher Larson
Insight Law
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