why does my lawyer need my tax returns

by Jeremie Bosco Published 2 years ago Updated 2 years ago 7 min read

The majority of the information that a tax attorney will need comes from the individual’s tax returns. If the individual owes a lot more tax than they expected, the first and most important thing to do is find out why. A lawyer will want to cross-reference those IRS letters with the individual’s tax returns to check for any errors or mistakes.

The defense wants this information since they want to know how much you were earning which is pivotal. Once you provide your tax returns, the defense will have a baseline to go ahead and evaluate whether what you are claiming is true.Apr 5, 2015

Full Answer

Are tax returns considered legal documents?

Your income tax return is a legal document, too, which you file with the Internal Revenue Service.

Can my ex demand my tax return?

A: The answer is “maybe” and the first thing to review would be your existing court order. If it calls for production of tax returns, etc., then that is the controlling order. If not, she has no per se right to your financial documents, and the court rules state that a party has to ask to open post-trial discovery.Dec 31, 2020

Are tax returns discoverable New York?

While New York courts generally favor broad discovery, they are reluctant to permit the discovery of tax returns due to their confidential and private nature.Aug 20, 2020

Can you go to jail for filing single when married?

To put it even more bluntly, if you file as single when you're married under the IRS definition of the term, you're committing a crime with penalties that can range as high as a $250,000 fine and three years in jail.

Are tax returns confidential?

Tax Return Confidentiality and Federal Law

The U.S. Code states that "[federal tax] returns and return information shall be confidential." This extends to any of the information related to the returns, such as reviews, audits, and any effort to collect unpaid taxes.May 1, 2019

Why Are They Requesting My Tax Returns?

If you have an Alabama personal injury or workers compensation case, tax return requests are routine. Many insurance defense lawyers make this request in every case. Why are they asking for your returns?

What Steps Can I Take When Tax Returns Are An Issue?

You don’t have to produce documents just because a defense lawyer requested them. If you have a personal injury lawsuit, you need an attorney who is detailed, prepared and willing to protect your rights. A good attorney will work through the issue with you.

Prepare For The Unusual!

When I was a brand new lawyer (many years ago), I sat through a trial where the primary lawyer represented a lounge singer hurt in a car accident. It was an interesting case for many reasons. The injury was pretty significant and the person claimed a loss of income.

What is an Income Tax Lawyer?

An income tax lawyer is a lawyer, also called an attorney, that specializes in filing income taxes for individuals and businesses. Tax lawyers also handle other issues that arise with individuals and the IRS.

Why Should You Consult a Tax Lawyer?

When an individual receives a tax notice from the Internal Revenue Service, it is not something that they should ignore or avoid. In many cases, there are specific deadlines involved that may trigger serious consequences if they are not followed in a timely manner.

What Kinds of Questions Will my Tax Lawyer Ask?

An individual’s tax lawyer will ask them a variety of questions regarding their financial situation. The specific questions asked will depend on the individual’s personal circumstances surrounding the amount they owe and the reason any back taxes are due.

Should I Bring my IRS Letters?

Yes. It is essential to come to an initial consultation with an attorney prepared with any and all communications the individual received from the IRS. This will help the individual’s tax lawyer to gain an understanding of the case against them and the deadlines that must be met.

Should I Bring my Taxes and any Other Relevant Information?

It is also important for an individual to bring their tax return and any other relevant information. The majority of the information that a tax attorney will need comes from the individual’s tax returns.

Are You Financially Able to Pay the Full Amount?

If an individual is not financially able to pay the full amount at the time it is due, they must determine what amount they can contribute towards an installment plan. If they ow less than $10,000, the IRS will automatically approve the individual for an installment plan without requiring any additional information.

Are You Going Through a Divorce?

Although it does not seem like this would have any bearing on an individual’s taxes, this question matters. If an individual and their spouse filed jointly, they are jointly and severally liable for any back taxes and any penalties that may arise from a joint return.

Does California have a privilege to produce tax records?

However, in California that privilege does not bar production and consideration of your income tax records according to Family Code §3552 in proceedings involving any kind of support requests. They are always available in discovery proceedings prior to the hearing itself.

Can you hold on to a report until the hearing?

Since you report that you were asked to bring them in a letter request rather than in response to a subpoena or some other form of discovery request that seek the returns prior to the hearing itself, you might hold on to them until the hearing.