GUEST POST: Hire a Tax Consultant and Steer Clear of the IRS/CRA and Legal Issues

GUEST POST: Hire a Tax Consultant and Steer Clear of the IRS/CRA and Legal Issues

GUEST POST: James is a finance blogger and writes about personal finance tips and everything about money management.

What do you do when you receive a letter, one fine day, from the IRS/CRA department?

Are you aware of how to handle IRS/CRA tax problems? Would you need a lawyer or accountant? Are resolving IRS/CRA tax matters a tad expensive? The answer to most of your tax related issues and concerns is just one – hire a tax consultant.

When is the right time to hire a tax consultant? Well, there is no good time as such to hire one. It is understood and considered safer when you hire a tax consultant even when you are away from legal hassles. You cannot really wait to welcome a tax problem and then go ahead with hiring a tax consultant. Just do that before you get into a legal mess!

To steer clear of IRS/CRA intervention, it is often advisable to hire a tax consultant to keep your books clean at all times. It goes without mentioning that non-payment of taxes attracts huge penalties that may lead you to pay even more than what you would have, otherwise. It is best to take precautions before problems come knocking on your door in the form of tax raids and other legal action by the IRS/CRA department.

Before going ahead, let’s confirm certain doubts that you may have in your mind right now….

  • Is hiring a tax consultant expensive?
  • Can I settle my debts without an consultant’s help?
  • When is ideally the right time to hire a tax consultant?
  • Should I hire a tax attorney to represent me in my IRS/CRA tax dispute?

Undoubtedly, a good tax consultant shall be able to answer all your questions without much trouble. In the meanwhile, you can educate yourself more on the tax types to analyze your tax-related problems in a clearer way.

Let’s delve a little deeper and try understanding some reasons why hiring a tax consultant has become so crucial these days. Here it goes…


Tax audit

Tax audits are literally a nightmare for many. People fall into legally-frightening situations when their tax audits are not done right. There are chances that you may have to pay huge sums of penalty too due to an imbalance and oversight of returns. This preparation of tax audits is a legally binding contract that takes place between the audited taxpayers and the agency. In such cases, you must be cautious and hire a tax consultant who can advise you further on tax filings and returns and save you from paying excruciatingly high tax penalties.

Criminal charges

When people do not pay taxes, the IRS/CRA is compelled to intervene and thus, press criminal charges against them. In such situations, it is best to hire a tax consultant who has adequate knowledge of tax laws and other legal guidelines associated with non-payment of taxes. It is considered a ‘fraud’ when an individual is found evading his or her taxes and hide income from the government. Such penalties and criminal charges may even lead to jail time for many.

Missing returns

It is always possible for someone to forget to file their returns every once in a while. However, such missing returns due to not filing your tax returns may lead to the IRS/CRA having several questions regarding your income and those ‘missing’ returns. Always remember that you owe an explanation to the IRS/CRA for non-filing of returns and missing returns. To ensure that you don’t forget to file your returns, hiring a tax consultant is the key to keeping your tax files and returns balanced, clean and clear.

CP notice – Notice of tax owing

CP notices are usually sent out by the government to those individuals who owe a certain amount of tax in arrears. Understanding the CP notice is not everyone’s cup of tea and some might find it extremely difficult in deciphering the meaning and objective of the notice. Hiring a tax consultant will help you understand such legal documents thoroughly, and also help you determine where you have gone wrong and how much balance you actually owe to the government. A tax consultant can keep your head clear about your mistakes and any legal actions that you may face further.

There is no way that you can avoid the IRS/CRA from interfering with your tax files and returns. To avoid paying penalties and facing criminal charges of any kind, hire a tax consultant who has complete knowledge of his or her profession and can help you deal with the daunting task of filing your tax returns. Gain some leverage and hold on your tax files and returns.

James is a finance blogger and writes about personal finance tips and everything about money management.

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