When the IRS sends a notice, launches an audit, or files a tax lien, most taxpayers panic — and understandably so. The IRS has the power to seize assets, garnish wages, and freeze accounts. But when you hire a tax attorney, everything changes. A qualified attorney becomes your legal representative, handles all communication with the IRS, and uses tax law, administrative procedures, and negotiation tools to protect your income, property, and peace of mind.
📘 Official IRS References:
- Publication 947 — Practice Before the IRS and Power of Attorney
- Form 2848 — Power of Attorney and Declaration of Representative
- Taxpayer Bill of Rights — IRS
- Publication 1 — Your Rights as a Taxpayer
What a Tax Attorney Actually Does?
Tax attorneys are licensed legal professionals who specialize in federal and state tax law. Their job isn’t just paperwork — it’s defense, negotiation, and protection.
Core Functions:
- Represent clients before the IRS and U.S. Tax Court.
- Negotiate payment plans, Offers in Compromise, and lien or levy releases.
- Stop wage garnishments and asset seizures.
- File appeals, petitions, and abatement requests.
- Ensure all communications go through counsel — not the taxpayer directly.
💡 Attorney Advantage: Only attorneys have full attorney-client privilege, allowing open discussions about tax problems without fear of disclosure.
What Happens When You Hire a Tax Attorney?
| Stage | What the Attorney Does | Why It Matters |
|---|---|---|
| 1. Consultation & Case Review | Reviews notices, transcripts, and financials. | Identifies errors, deadlines, and defense opportunities. |
| 2. Power of Attorney Filed (Form 2848) | IRS notified of legal representation. | Stops IRS calls, visits, and direct contact with you. |
| 3. IRS Transcript Analysis | Pulls account records, penalties, balances, and CSED dates. | Determines statute of limitations and viable resolution paths. |
| 4. Strategy Development | Creates custom plan: appeal, OIC, CNC, or payment plan. | Prevents costly or premature negotiations. |
| 5. Negotiation or Litigation | Communicates directly with IRS officers or appeals. | Achieves settlements or stops collection action. |
💡 Insight: Experienced lawyers know how to read IRS transcripts to uncover misapplied payments, expired assessments, and compliance errors — often saving clients thousands.
The Legal Tools Attorneys Use Against IRS Enforcement
| Tool / Action | Purpose |
|---|---|
| Collection Due Process (CDP) Hearing | Stop liens or levies and appeal enforcement. |
| Offer in Compromise (OIC) | Settle for less than owed under hardship rules. |
| Installment Agreement | Arrange structured payments. |
| Currently Not Collectible (CNC) | Temporarily halt collection. |
| Penalty Abatement | Remove penalties for reasonable cause. |
| Innocent Spouse Relief | Separate liability from spouse’s actions. |
| Tax Court Petition | Challenge IRS audit results or assessments. |
📘 Reference: IRS Appeals Overview — Publication 1660
Why the IRS Takes Attorneys Seriously?
IRS personnel know attorneys:
- Understand the Internal Revenue Manual (IRM);
- Recognize when procedures were violated;
- Know the limits of IRS authority; and
- Can escalate issues to Appeals or Tax Court if necessary.
📘 Reference: Publication 947 — Practice Before the IRS
When You Need a Tax Attorney Immediately?
You should hire an attorney as soon as:
- You receive a Notice of Intent to Levy.
- The IRS files a Federal Tax Lien.
- You’re facing criminal tax investigation or fraud referral.
- You owe over $25,000 and can’t pay in full.
- Your business receives Form 4180 interview request (Trust Fund Recovery Penalty).
💡 Tip: Early intervention often prevents liens and levies before they’re issued — once the IRS enforces, reversal becomes far more difficult.
📘 Reference: Publication 594 — The IRS Collection Process
Attorney Representation in an IRS Audit
When you’re audited, a tax attorney can:
- Obtain and review your IRS audit file.
- Respond to all information document requests (IDRs).
- Limit the scope of the audit to relevant years and issues.
- Negotiate adjustments or file an appeal if the IRS disallows deductions.
- Represent you in IRS Appeals or U.S. Tax Court if needed.
📘 Reference: Publication 556 — Examination of Returns, Appeal Rights, and Claims for Refund
How Legal Representation Changes IRS Behavior?
When an attorney takes over:
- All future communication goes through counsel.
- Your attorney negotiates directly with Revenue Officers or Appeals.
💡 Outcome: You move from reactive panic to strategic, legally protected action.
Turning IRS Stress Into Legal Strategy
Hiring a tax attorney is more than getting help — it’s regaining control. From audits to liens, levies, or penalty assessments, an attorney ensures the IRS treats your case fairly and within the law. A skilled lawyer can analyze your IRS record, protect your rights, and negotiate a realistic settlement.
Contact Pelham PLLC today for a confidential consultation. Our tax attorneys represent individuals and businesses nationwide — defending your income, assets, and peace of mind against the IRS.
FAQs
Will the IRS stop contacting me once I hire an attorney?
Yes, all IRS contact must go through your attorney after filing Form 2848.
Do tax attorneys really negotiate with the IRS?
Absolutely. Attorneys use OIC, Installment Agreements, or hardship programs to reach settlements the IRS accepts legally — not loopholes.
Can a tax attorney help after a levy or lien is filed?
Yes. Attorneys can file for release, withdrawal, or CDP appeal to remove liens or reverse levies.
Can I be personally liable for my business’s tax debt?
Yes, the IRS can assess the Trust Fund Recovery Penalty (TFRP). Attorneys defend you in those interviews and appeals.
