Far too many people get in over their heads with the IRS and don’t reach out to an experienced tax attorney as soon as possible to increase their chances of fighting back. There are four common reasons why many people find themselves in the midst of a serious problem. The first is known as filing too many exemptions. Exemptions can dramatically decrease your taxable income but some people may allow themselves more exemptions than they are legally allowed to take.
You do have a right to an exemption for yourself, a spouse if married and filing jointly, but throwing in a couple of extra exemptions as a way to lower your tax liability is a problem. Another common reason that many people find themselves in the midst of problems with the IRS is not paying enough taxes when self-employed. Self-employed individuals are required to remit self-employment taxes and income to the IRS and the state on a quarterly basis.
Many people end up with an unmanageable tax flow bill that they cannot pay and implement a monthly budget is one way to address this. The third most common reason why people end up with problems with the IRS is taking early withdrawals from a retirement plan. You are responsible for a 10% penalty if you make a withdrawal before the age of 59 and a half.
Finally, people who do not pay the appropriate taxes based on gambling or lottery winnings may find themselves in the midst of a serious IRS problem that escalates quickly.
In all of these situations, you deserve to have the expertise provided by a knowledgeable tax attorney who can help you work through these complicated issues and get assistance from an experienced and dedicated lawyer. If you need assistance with the tax problem now, engage an attorney sooner rather than later. A lawyer who has worked with complicated IRS cases is a big benefit for you as the taxpayer when it comes to leveling the playing field.