Those who have been successful enough or simply failed to pay the requisite self employment tax and are suffering an IRS audit will need the services of a good Social Security Attorney. Lawyers in self employment specialties are absolutely required when dealing with the IRS, since you are guilty until proven innocent in the eyes of that notoriously humorless branch of the government.
It is good to know that the likelihood of your requiring either a Social Security attorney or lawyer in self employment law is dramatically decreased when you take the time to consult with an accountant as well, especially when you’re first starting your business up.
Of course, your chances are even better if you haven’t done anything wrong. Going into self employment with the notion that you’re going to be able to evade taxes is sure to end in tears. Even if you only work part time, you’re still required to submit monthly estimated tax payments and settle up fairly and squarely every year.
Even the keenest Social Security attorney or lawyer with self employment experience can help you much in such a situation. He or she may be able to find a way for he penalties to be somewhat less egregious, but this usually takes the form of a payment schedule for the massive fines you’ve accrued.
By having clear records and actual receipts to compile a deduction from, a Social Security attorney or lawyer in self employment practice can actually file your back returns, for several years if need be, and get a clear idea of what you owe. From there, you can work out a payment schedule.
You will, of course, have to start by giving her or him a large pile of money as a retainer so they can become your legal representative to the IRS. This has the added bonus of stopping those nasty letters from coming to your house, instead going to someone who has the wherewithal and influence to do something about them.
When selecting a good Social Security attorney or lawyer in self employment law, you’ll want to check and see what percentage of their work involves cases similar to your own. Check also, if you can, on references that your prospective representative should be able to provide for you. Don’t just rely on the phone directory – check to see if you have friends or business contacts that they can recommend, but always be sure to ask why. It never hurts to double check and make sure of their good standing with your state bar association, just to be on the safe side. A quick peek on the Internet with a name search can be illuminating, too.
Though this is a tough time for you, don’t compound your problems by hiring the first lawyer who comes along.