Unfiled Tax Returns
Unfiled tax returns might seem like a minor issue if you’ve just missed the tax deadline, but if you allow too much time to go on, you could be facing significant penalties and problems with the IRS. Thankfully, consulting with an experienced unfiled tax returns lawyer in Orlando, can help you rectify this situation.
Don’t let too much time go by without trying to fix your unfiled tax return situation. A lawyer can help to represent you when you’ve fallen behind so that the potential consequences can be minimized.
The IRS typically requires that the last six years of tax returns need to be filed in order for a taxpayer to be considered compliant and current. If you have already fallen behind and have unfiled tax returns, one of the most important things you can do is gather your information and schedule a consultation with a tax attorney. Do your best to pull together the records for the years in which you did not file. This might include W2s, 1099s, stock sales, dividends, and interest. This is just a starting point so do not hesitate to take action just because you are missing records. Securing internal IRS transcripts may also identify what has already been reported to the IRS such as a comprehensive listing of W2s and 1099s already sent to you.
This is an opportunity to verify your records with that of the IRS. If you fail to complete your own unfiled tax returns, the IRS will go by what they have, meaning that nay expenses and deductions you might have previously claimed will be missed entirely. Business income and expenses have to be identified if you are self-employed. Piecing together your income from multiple different methods can be achieved by talking directly with an experienced tax attorney who knows how to avoid many of the most common problems and challenges associated with becoming IRS compliant. The sooner you schedule a consultation with a lawyer, the more confident you will feel in addressing your unfiled tax returns.
If the IRS has opened an investigation into your taxes or you’re already dealing with complex tax concerns, you need to know how a lawyer can step in to help. Trying to manage an allegation like this on your own could land you in even more hot water, whereas knowing what to do next is essential for your best interests. Avoid extra payments, administrative issues, and possible criminal charges by retaining an experienced tax lawyer sooner rather than later.
Being accused of tax evasion is a serious offense and one that can develop quickly if you do not have a tax attorney at your side. The most commonly prosecuted federal tax crime is tax evasion and it is a failure to report taxes accurately, failure to pay taxes or a failure to report taxes at all. If the IRS can prove a case for tax evasion, the penalties can include jail time and monetary fines. It is important to understand what constitutes a tax, what constitutes an attempt and who can be prosecuted. To establish a case for tax evasion, the government has to prove that additional tax was due, that the taxpayer attempted to defeat or evade a payment of tax and that the taxpayer acted willfully. Any person can be pursued for tax evasion allegations which is a relatively broad scope for the government.
Prosecutors will utilize this statute to pursue an administrator of an estate who attempts to avoid estate tax, an individual or a corporate officer who attempts to evade their corporation’s corporate tax. The IRS applies the tax evasion statute very broadly, targeting all kinds of businesses and persons. The broad net that the IRS can cast means it is extremely important that you identify a tax attorney who has broad experience in this field and who will do everything possible to protect your best interests. When you have a tax problem or you suspect that you are already under investigation for tax evasion, you cannot afford to wait.
You’re in over your head as soon as you start dealing with the IRS because you’ll need to respond to numerous memos and in a timely fashion in order to avoid additional penalties. It might seem like the matter can be sorted out easily if you just provide further information, but that’s not always true. Since you might not be able to get ahold of someone who can help you with a complicated tax issue, trust a tax attorney to know a way in to talk to someone at the IRS to ensure your side of the story is represented accurately.
With any complicated tax issue, it’s natural to want to figure out whether or not it makes sense to hire a professional to help you or to settle yourself. If you are in negotiations with the IRS or are facing an audit, representing yourself could lead to serious issues and mistakes.
You should hire a tax attorney if you are negotiating with the IRS if you are being audited, if you have received an IRS notice or if you are facing criminal charges. Tax fraud and tax evasion are some of the most common causes of criminal IRS investigations and these may warrant the insight of a tax attorney or a criminal defense attorney. A tax attorney is an important advocate in dealings with the IRS. In addition to negotiating with the IRS on your behalf, a tax attorney may be able to dissuade the IRS from pursuing lines of questioning that are inappropriate. A tax attorney can also help to manage the issue effectively, understanding the complexities of your processes and your issue.
Tax attorneys will often have a strong background in tax law and will be familiar with the variety of approaches available to you that will work best for solving your dilemmas. Furthermore, a tax attorney likely has advanced negotiating skills and is unlikely to be intimidated by an IRS official. Getting the attorney client privilege benefit of a tax attorney is yet one more reason why you should consult with somebody you trust as soon as possible.
Tips for Stopping a Tax Levy
The levy that frequently causes a tax debtor to reach out to a knowledgeable tax attorney is the notice of intent to levy. The agency informs the taxpayer that they will be taking the final step to collect a tax debt directly from a third party by taking the debtor’s investments, wages, or other funds due to him or her. The IRS has the opportunity to take as many of the funds necessary to satisfy the debt or the major portion of a paycheck, which makes it all the more important for a tax debtor to hire an experienced attorney to stop that garnishment or seizure.
One of the most effective means of doing this is by using a collection due process hearing. This means the IRS discontinues the levy pending discussions with the IRS on alternatives to collecting the tax. This gives the client some time, up to 90 days, in order to identify defenses and alternatives to the tax debt.
Many people are tempted to ignore notices from the IRS because the recipient feels anxiety about being in over their head with a tax problem. You may be able to diminish the consequences or avoid problems by hiring a tax lawyer as soon as you get such a notice, however. Furthermore, hiring a lawyer means that this attorney can serve as the communication go-between with you and the IRS. Make sure you take this situation seriously.
In the event that the hearing is requested after the deadline, the IRS will usually give the tax debtor an equivalent hearing and although they are not required to suspend the levy action, they do have the informal policy of doing so. Collection action can be stopped including a tax levy with the automatic stay of bankruptcy, however, this is only a temporary measure as many tax debts cannot be discharged through bankruptcy. In any case, consulting with an experienced attorney is extremely valuable if you find yourself in this situation. Finding a tax lawyer well in advance of receiving these kinds of notices is strongly recommended, because you will be more aware of the opportunities available to you.
A tax lawyer is a professional who focuses on tax law and assists taxpayers when they are having complex problems with their State Revenue Department or the Internal Revenue Service. Tax attorneys can help business owners to solve problems on business taxes, but they also assist with personal taxes. Tax attorneys can prove crucial in assisting with reducing fines, getting through audits and understanding self-employment and small business tax issues. Furthermore, they can become a vital asset in managing complex business transactions, such as liquidations or mergers and interpreting tax liability of a broad range of decisions.
Many people hire tax attorneys when their accountant has done a poor job of managing their finances, when it is too late to hire another CPA or when they do not have an accountant. The tax legalities associated in dealing with the Internal Revenue Service can become extremely overwhelming and frustrating for a lay person, but a tax attorney can step in. When you are under criminal investigation by the IRS, have committed tax fraud, need an independent review of your case, or plan to bring a lawsuit against the IRS. Other people may choose to hire a tax lawyer when they are thinking about establishing international business contracts or starting their own business. Tax questions can be answered by an attorney well in advance, but a lawyer can also be extremely beneficial when you are facing a current tax issue that requires insight from an experienced attorney.
Don’t wait to reach out to someone who can help you protect your rights in a complicated tax situation. Trying to figure things out on your own exposes you to mistakes and further penalties, so the sooner that you engage with an attorney who can give you a realistic assessment, the better prepared you will be for the future. Gather your evidence and schedule a meeting now with a tax lawyer in St. Louis you can trust so that you know where you really stand. Don’t be someone who waits too long to reach out for assistance- in any tax situation, you can benefit from the insight of a lawyer.
When encountering a snag with the IRS or any other tax issue, it may seem like the easiest thing to do to try to manage this on your own. However, making mistakes early on in the process or even later on when the situation has escalated can lead to further problems and aggravations for you. There are five primary reasons why it makes sense to hire a St. Louis tax attorney to assist you with your problem. Contacting an attorney promptly gives you the best possible opportunity to resolve this issue. The main reasons why you need to hire a tax attorney include:
- Time is money. With more than 1700 pages of fine print, a tax lawyer can help you sort through the IRS code that applies to you.
- Missed deductions. Especially if you own a business, new equipment, travel and many other items can be deductible business expenses but these come with very specific requirements. If there is a question over whether or not something you’ve already provided fits into the framework, you need a tax attorney to assist you.
- Connection to higher ups in the chain. When you contact the IRS, you may not be getting someone at a supervisory level. However, a tax attorney in St. Louis may have a better chain or connection to the IRS employees who can help the most.
- Immediate assistance with elevated issues. If you have a serious tax issue, you need to consult with an attorney immediately to stop the situation from going into a lien or wage garnishment status. Consulting with a lawyer can help to delay or stop this issue by giving you a path.
- Understanding of your rights. You may not be familiar of all of your rights as a taxpayer when first contacting the IRS on your own. However, your lawyer can walk you through the process and help you understand what you need to do and the rights to which you are entitled.
- Understanding of tax laws. Tax laws change all the time as do IRS interpretations of that tax code. Having an attorney who is familiar with these aspects can be of great value to you.
If you are unable to pay federal tax debt, the IRS gives you the opportunity to get a new start known as an offer in compromise. It is critical to understand that retaining an experienced tax attorney is strongly recommended in this situation because specific criteria must be met and open lines of communication need to be maintained. It might seem as though you can handle this opportunity on your own, however, if you are not eligible for streamlined offer in compromise, you should always hire a tax attorney to manage your IRS negotiation. The IRS can take up to 2 years to reject or accept an offer and compromise and the higher the total amount that is owed, the less likely the IRS is to accept a settlement offer.
Hiring an experienced tax attorney to assist you with navigating this process and negotiating the total amount owed gives you a better chance of not only success but of maintaining an offer and compromise which is reasonable for you to pay off. When an attorney is involved, they are more likely to fully understand your financial situation and help to frame it in a way that the IRS may look favorably on your offer in compromise. If the offer in compromise is associated with medical hardships, your attorney can also help gather the information and manage the IRS phone calls so that you can focus on your medical treatments. Knowing these facts and walking through it with your dedicated lawyer is strongly recommended. Getting help from a dedicated attorney is one of the most important things you can do when you have serious IRS debt and want to make an offer to pay a portion of it.
An offer in compromise is one way for you to get fresh start that you need to move on after a serious IRS debt. Having an attorney to assist you with this process will allow you to focus on the rest of your life without the fear of this tax problem becoming any more severe. Identifying a lawyer you can trust is an important component of the process and one that you should not overlook.
It can be nervewracking to receive any type of communication from the Internal Revenue Service. It is important to understand when a notice is simply a basic notification and whether you need to take advance action by hiring a Missouri tax lawyer. Even if you are being audited, there is no reason to panic, but it is in your best interest to take action sooner rather than later. The first thing you need to do after receiving an IRS letter is to determine what the IRS wants and whether or not this is accurate. You can be audited for any reason, and a letter from the IRS may be your first notice that there’s a problem.
Even if you believe that all of your information has been submitted correctly, you can still be audited. The letter or your tax preparer can help you identify the reason why the audit is occurring. Missing documentation may be one of the most common reasons. After you have read through the letter, you may determine that the auditor at the Internal Revenue Service is correct and that you may owe extra money. Sometimes this happens through none of your individual fault. If you agree with the assessment by the IRS, you can pay the additional tax and move on. However, if you disagree with the findings listed in the letter, you do have the right to submit documentation and an explanation why. When you try to resolve these issues on your own, there’s always a chance that the stakes get higher and that you’ll need to hire an experienced attorney anyways.
As these issues become extremely complicated, it is valuable to talk to an experienced tax law attorney in Missouri, who can help you determine the next steps that you need to take to protect yourself. Often it can be emotionally challenging to handle these issues on your own, but it can also be extremely confusing because you may have provided the information and continue to receive more versions of a letter from the IRS. Involving an experienced tax law attorney with advanced issues will help you increase your chances of success. But taking action sooner rather than later is strongly recommended. Providing that additional documentation to your tax lawyer is just one step that you can take to increase your chances of success.
Tax fraud allegations are serious issues that should be handled by a knowledgeable lawyer. Most people don’t realize the severity of an investigation until it’s too late, but you can do yourself a favor by hiring a tax lawyer as soon as possible after an investigation is opened. Doing so could help you with your case significantly. Read on to learn more about what indirect proof the IRS might be gathering to bring a case of tax fraud against you should they choose to move forward.
Direct proof of fraud by the IRS usually consists of phony deductions and clearly overstated deductions or exemptions. Most of the time, income underreporting does not lead to direct proof by the IRS. Instead, the IRS will rely on the four indirect methods. These include:
- Bank deposits
- Specific items
- Net worth
- Requesting you fill out form 4822 (Statement of Annual Estimated Personal and Family Expenses)
Specific items refer to situations in which you received a check from your business and pocketed that money without putting it in your books. Usually, the IRS will identify more than one specific item to put together a fraud case.
The IRS’s favorite indirect method to identify unreported income is bank deposits. However, there can be legitimate explanations for non-taxable bank deposit sources like gifts, tax-exempt income, loans, and inheritances. This is why it is important to document everything. If an auditor requests that you fill out form 4822 you should politely decline or throw the form away.
The IRS cannot pursue you for refusing to fill out this form. The final indirect method of net worth involves an auditor adding up all of your assets and deducting any liabilities at the start and the end of the tax year under audit. You may be suspected of fraud depending on the result. Consulting with an experienced tax lawyer can help you identify the most appropriate course of action to take.
You need help if you suspect you’re being investigated for tax fraud or if you have already been accused.