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Even though it is commendable that you're trying to correct things, employing an accountant to complete these overdue returns is actually a big mistake. The key reason why is because tax evasion is really a criminal offence or prison. You mi...

You have been feeling uneasy (perhaps even guilty) because you have didn't record your under the dining table business income. Maybe you have never filed a tax return, even though you know you owe money. Finally, you contact an accountant to solve the problem.

Although it is good that you are attempting to correct matters, employing an accountant to accomplish these delinquent earnings could be a big mistake. The key reason why is really because tax evasion is a criminal offence or felony. You could also be at the mercy of civil action.

Would you employ an accountant to protect you in a legal proceeding? Not likely. You would be smart to retain a professional lawyer.

To begin with, attorneys have some thing called solicitor-client privilege legal counsel privilege) or (also known as attorney-client privilege. This fundamentally implies that things you tell your lawyer when seeking legal advice are secret and can not be utilized against you. Even written records could be covered by this opportunity.

On the other hand, your accountant can be compelled to testify against you and all records in his possession can be required by the authorities.

2nd, your lawyer can prepare a legally binding agreement that can protect you. In return for your coming clear, the tax authorities might agree to not charge a fee criminally and, in some instances, even reduce fines or tax liability.

They are able to require all information regarding you, if your accountant tried to do the same. Your accountant wouldn't be protected by solicitor-client privilege.

If, say, your accountant filed your tax return from 10 years before on your behalf, the tax authorities might however charge you with tax evasion, despite the fact that you're obviously trying to correct matters (although a little late).

It's even possible that your accountant could easily get in to trouble for failing to report your delinquency. On the other hand, your attorney can't be forced to testify against you, being secured by solicitor-client privilege. Your lawyer may also have their own in-house accountant in order to protect you.

Your lawyer (devoted to tax and legal law) will more than likely negotiate a deal with the tax authorities before filing any tax returns.

Therefore, if there is a good chance you will be billed criminally for your failure to file taxation statements or effectively report income or expenditures, do not see your accountant. Instead, consult well a lawyer devoted to such matters when you file or change any earnings. official site