Another reason not to communicate with the IRS yourself, and to look for a tax advisor to represent you, is to avoid potential criminal exposure, which can result from your past actions, including late or non-filing of tax returns, and even from what may seem to be perfectly innocent statements made by you to them. Any false statement to any federal agent, even though not made under oath, can result in an indictment, as Martha Stewart found out. If your advisor is a lawyer, your communications with him enjoy an attorney-client privilege. CPAs and other non-lawyer tax professionals do not have that privilege, and the IRS can actually call them as witnesses if your case becomes a criminal one.

Some things to look for when choosing a tax attorney:

– Martindale-Hubbell ratings. This peer-reviewed rating can give you an
idea of what other lawyers are saying about the attorney you’re looking at.

– Diplomas don’t lie. Look for specific tax experience and training. Look
for a lawyer who specializes in tax law, preferably one who graduated from
a highly-rated law school. Try to find a lawyer with a Master’s law degree
specializing in tax law (LL.M. in Taxation)

– Litigation experience. A significant reason why the IRS settles is
because they have to consider the hazard of litigation. They are going to
want to get things settled and avoid a lengthy court battle — but only if
your case poses a risk to them. You need a credible threat of being able to
go to court and really stand up to the IRS to get leverage to make them
settle.