Can a tax attorney help with the IRS?

It's tax filing time, and for many Americans, that means extra financial stress. Some may be unable to pay their tax bills or could find themselves adding onto already existing tax debt — putting them further in deep with the Internal Revenue Service (IRS). 

If you're dealing with these problems, a tax attorney may be able to help. 

"A tax attorney is a lawyer specializing in tax law who helps clients manage complex tax issues, disputes with the IRS, audits, and legal tax strategies," says Stewart Willis, president of Asset Preservation Wealth and Tax. "Unlike other tax professionals, they offer attorney-client privilege, ensuring confidentiality." 

Still, a tax attorney isn't right for every scenario, and this type of legal help can get expensive. Here's when pros say you might want one — and when you can use a traditional tax pro or handle an issue yourself. 

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When a tax attorney can help

As Willis noted, tax attorneys can be helpful if your situation requires discretion, as they're required to keep anything discussed confidential, per legal code. 

They can also assist with IRS audits, tax liens and levies, and wage garnishments, according to Willis, and can be particularly helpful if you're dealing with very large tax debts — even negotiating with the IRS on your behalf. 

When you'll really want one, though, is if you find yourself in a dispute with the IRS and are facing down tax court.

"Tax attorneys are authorized to practice before the IRS and tax court," says Rob Burnette, CEO of Outlook Financial Center. "If you feel your case is headed for tax court, a tax attorney is your only choice. Others — like an IRS enrolled agent — can represent you in front of the IRS but not tax court." 

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When a tax attorney can't (or shouldn't) help

Technically, a tax attorney can help you with anything, from filing your tax return to doling out general tax advice, "but they will be the most expensive choice," Burnette says.

For this reason, they're best used for serious and significant tax issues. Filing your returns or getting a tax extension, for example, are probably not things you'd use a tax attorney for.

"Simpler matters — like minor tax errors, straightforward payment plans, or basic filings — can usually be handled directly or with a CPA," Willis says. 

If you find yourself being audited, your tax preparer can help with the initial phases, as long as they have the Annual Filing Season Program (AFSP) designation. 

"If the process is escalated beyond the initial discovery and review stage, an IRS enrolled agent will be needed to represent the taxpayer before the IRS," Burnette says. This will typically cost much less than using a tax attorney. 

"A tax attorney would need to take over any case that gets appealed to tax court," Burnette says.

The bottom line

There are many types of tax professionals, including tax preparers, CPAs, IRS enrolled agents and tax attorneys. If you're facing tax debts, a tax relief company may be able to help, too.

If you're not sure which is needed in your case, talk to a financial advisor or the professional who helps with your annual tax returns. They should be able to point you in the right direction.