IRS TAX LIEN

IRS TAX LIEN – What Happens When the IRS Files a Tax Lien

If you don’t file and pay your taxes, things can get pretty bad with the IRS.  One of the worst things that can happen is the IRS may file a Notice of Federal Tax Lien.

Basically, a tax lien is a claim against your property.  It is not a seizure of your property, such as a bank levy or wage garnishment.  A tax lien is the IRS’s way to ensure they get first rights to your property over other creditors.  For example, if you go to sell your house, the IRS will have a claim when you go to sell it, in the amount of the tax lien attached.

Do I have an IRS Tax Lien? How do I know an IRS tax lien has been filed?

The filing of a federal tax lien should not be a surprise.  The IRS must follow the following procedures:

1. A tax assessment amount is made against you when you owe on an original return filed by you and not paid off OR by the IRS filing their own tax return for you called a substitute return (“SR”). They receive this SR authority through IRC Section 6020(b).

If the IRS files an SR, be sure to file an original return for “Reconsideration.”  This should be done because SR’s commonly overstate actual tax liability.  These types of returns are only based on information the IRS has and it does not include any additional expenses or exemptions of which you may be entitled.

2. The IRS then demands payment through several types of notices for each period owed. This is called the “Collection Process.”  Before the IRS can place a tax lien on your property or collect in any other manner, they must issue a series of notices regarding the outstanding balance due.  These notices continue until (1) you pay your account in full (2) the statutory period of time to collect expires (3) you get approved for a payment plan (4) you qualify for a non-collectible status due to financial hardship plan or (5) you settle with an offer in compromise.
3. The taxpayer does not pay the tax bill in full by the due date. If this is the case, the IRS will move forward and file a tax lien with the county.  The most important letter notifying you that a tax lien has been filed is the Notice of Federal Tax Lien.

What are the effects of a Federal IRS tax lien?

Once a tax lien is filed, it becomes a matter of public record.  It is a document filed with a county government (usually where a taxpayer lives or conducts business).  Its purpose is to notify the general public that there is an unpaid federal tax debt.  It attaches to all property, both personal and real property.  Effects of a Federal tax lien include:

• damage to a taxpayer’s credit report by lowering the credit score
• difficulty in qualifying for financing and loans
• difficulty in qualifying for credit and insurance
• losing government contracts and business
• homes harder to sell due to attached tax lien

If the effects are severe and the IRS tax lien is harming your livelihood, it is important to look into ways of removing a tax lien.

In reality though, the IRS does not enforce the tax lien against your property unless the property:  (1) has value and equity and (2) is not necessary to your health and welfare (household goods, a car providing transportation to work, and necessary business equipment to keep business afloat as it is necessary to your health and welfare).

Taxpayers needing assistance in dealing with IRS tax liens and other IRS problems should seek the advice of a tax attorney.  The San Diego Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation for IRS tax resolution at (619) 639-3336. We look forward to helping you.

This blog post is not intended as legal advice and should be considered general information only.

 

Keywords:  Federal Tax Len, Notice of Federal Tax Lien, IRS problems

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What can the IRS do if I don’t pay payroll taxes

Payroll Taxes – What can the IRS do if I miss paying payroll taxes?

As an employer, it is your responsibility to collect, report, and to pay employment taxes.  If you do not, your tax case generally gets quickly assigned to an IRS revenue officer to collect any delinquent payroll taxes.  Yes, that means trouble.  Even worse, it is considered a felony.

An IRS revenue officer is the most serious IRS representative you can get with broad powers to apply tax liens, tax levies and wage garnishments.  When you have unpaid employment taxes, it is one of the most serious offenses you can commit.  It is not uncommon that they first come by your business to see what assets they can find, which can be quite uncomfortable, especially if your company has nothing to give.

If they find assets or revenue within your company, that can cover the payroll or employment taxes, they will collect upon your company.  Additionally, the IRS can hold you or whomever was responsible personally liable for paying the payroll taxes.

Payroll Taxes – What are the taxes I have to pay relating to my employees?

The following must be withheld from every employee’s pay:

• Federal and state income taxes
• Social Security and Medicare (FICA taxes). These taxes must be reported on Form 941 on a quarterly basis.
• Federal unemployment taxes based on the number of employees, reported on Form 940 for federal on an annual basis.
• Worker’s compensation fees (taxes) to state or federal agencies.

Employment tax due dates can be found at the IRS website by clicking on the following link:

https://www.irs.gov/businesses/small-businesses-self-employed/employment-tax-due-dates

Personal liability for payroll taxes:  The Trust Fund Recovery Penalty

When an IRS revenue officer cannot find sufficient income or assets in your company (from a submitted Form 433B business financial), he or she will look to the owner or whoever was responsible for not paying the payroll taxes.  This is called assessing a Trust Fund Recovery Penalty where the amount of these trust fund or employment taxes is assessed to the person responsible.

The revenue officer will conduct an investigation and first conduct interviews to see who in the company is responsible for the unpaid employment taxes.  The form the IRS revenue officer uses is Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty.

Be very clear that despite using a payroll service or someone else to withhold and make deposits, you, the employer, are still very much responsible.  It does not relieve you of your responsibility to file and pay timely on behalf of your company.

What Are the Penalties for missing payroll taxes?

• Form 941 penalties (see IRS Publication 15: Employer’s Tax Guide. These penalties are for Form 941 taxes (withholding and FICA taxes) but may also apply to other similar forms.
• Failure to file For Form 941 and similar forms. 2% 1-5 days late, 5% 6-15 days late, 10% more than 16 days late or within 10 days of first notice from the IRS, maximum 15%.
• Trust Fund Recovery Penalty. 100% of the unpaid tax (income, social security, and Medicare). In addition to penalties, interest accrues from the due date.

Additionally, tax liens may be place on your business and eventually on you personally if the tax debt goes uncollected.

Can I make late deposits for payroll taxes?

You can, but here’s what happens:   You have tax deposit requirements of $2,000 each month.  If you don’t make your March 15 deposit, but you make a deposit of $2,500 on April 15 to catch up.  $2,000 will be applied to your April 15 requirement and $500 to March 15.  You may also get a penalty assessed to the unpaid portion in March.

In summary, stay compliant with your payroll taxes at all costs.  The IRS has been urged go after non-compliant employers as summarized in a recent Forbes article found at:

https://www.forbes.com/sites/robertwood/2017/03/23/irs-urged-to-penalize-and-prosecute-payroll-tax-violations/#35db8cf156cb.  In it, the author describes an interesting “report” from the Treasury Inspector General for Tax Administration detailing the trend of serious employment tax crimes.  Review this report and article and be aware when operating your business with employees.

Taxpayers needing assistance in dealing with employment taxes or payroll taxes and IRS problems should seek the advice of a tax attorney.  The San Diego Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation for tax resolution at (619) 639-3336. We look forward to helping you.

This blog post is not intended as legal advice and should be considered general information only.

 

Keywords:  Payroll taxes, employment taxes, Trust Fund Recovery Penalty, IRS problems, tax liens, tax levies

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What can a tax attorney do?

What Can a Tax Attorney Do?

When you are experiencing IRS tax problems, the one professional you should turn to is a tax attorney.  Don’t bother with CPA’s, EA’s (enrolled agents) or tax relief firms as they most of the time make your IRS problems worse.  Tax attorneys are well-versed in tax law and know what to do to effectively resolve any legal tax issue.

Hiring a tax attorney can be indispensable to your case, but many taxpayers want the low-down of what exactly they can do.

Attorney client confidentiality is what a tax attorney can do.

This is a huge bonus and one aspect that many taxpayers feel is extremely important…  CONFIDENTIALITY.  All attorneys are bound by the attorney client privilege and attorney client confidentiality.  This means that all communication between you and your tax attorney is to be kept secret.

An attorney cannot be forced to disclose what they know, except in certain rare circumstances (i.e., you are about to commit a murder). Therefore, you can feel free to discuss all the details you want and reveal potential incriminating information without the fear that it can be held against you.

Experience and vast knowledge of tax law is what a tax attorney can do.

Tax attorneys are lawyers who have specific knowledge with regard to tax law.  Tax law encompasses the IRS code (statutes), treasury regulations, revenue rulings, tax treaties, tax case law, tax opinion letters and private letter rulings.   Not all can be relied upon as precedent though.  A tax attorney can use all this vast knowledge to handle complex legal issues associated with your tax problem.

Of course, you can represent yourself before the IRS, but it’s not a good idea.  Tax law is one of the most challenging and complex areas of the law. The Internal Revenue Code is rarely clear about anything and is constantly changing.  A tax attorney can keep you updated on all the changes and guide you through the ambiguity, coming up with the best solutions to solve your IRS problems.

A tax attorney has extensive legal knowledge to assist or resolve the following tax and business-related tax issues:

• tax audit representation
• payment plan negotiation
• offer in compromise (settlement) of your tax debt for less than you owe
• wage garnishment, bank levy and tax lien release
• foreign reporting of income
• tax strategy to maximize your deductions and lower your income
• tax fraud and tax evasion
• identity theft
• business entity selection and set-up
• U.S. Tax Court representation (litigation)
• estate planning tax strategies
• drafting tax opinion letters
• other issues pertaining to analysis of the IRS code, for example, how are Bitcoin and other cryptocurrencies taxed?
• all other tax resolution options/strategies with regard to the IRS

Extensive IRS experience

Dealing with the IRS can be extremely taxing and complicated. Many of the departments don’t even talk to one another leaving a taxpayer pretty lost at times and extremely frustrated.  A tax lawyer can help take you out of the game and maneuver quickly and efficiently to get you the most efficient and advantageous results.

Also, a tax attorney will know how to approach each IRS representative, tax auditor, offer in compromise officer, revenue agent or revenue officer.  IRS personality types can be pretty tricky.  It is super important to know how to handle each one successfully.  It can make all the difference in obtaining a positive result.

Expert negotiation skills

With a tax attorney, you can expect advanced negotiating skills.  Having this special skill set is invaluable as attorneys are trained to be master negotiators from the time they are in law school.  For example, it can mean the difference between obtaining a low or high settlement offer when applying for an offer in compromise. This negotiation expertise provides a lot of assurance so that you will get the best deal possible.

Highly efficient and hard working

A tax lawyer can do in a month what a tax relief company may do in a year or even more.   And, it will probably cost you less with an attorney in the long run.  Not only does a tax attorney know what needs to be done, but also when and how the problem can be resolved fast.

Unfortunately, the goal of a tax relief company is to keep putting off the taxpayer by doing as little as possible, so that they can bill for a longer period of time.  Also, with a tax relief company, you rarely talk to an attorney, if they even have one on staff.  They generally lie about one being on staff to get you to commit to their contract.  So, watch out!

Taxpayers needing assistance in dealing with IRS tax problems should seek the advice of a knowledgeable tax attorney.  The San Diego Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation for tax resolution at (619) 639-3336. We look forward to helping you.

This blog post is not intended as legal advice and should be considered general information only addressing what a tax attorney can do for you!

 

Keywords:  Tax Attorney, Tax Lawyer, Tax Relief Firms, Tax Relief Company, IRS problems, IRS Tax Problems

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Bitcoin tax tips for US citizens –What is going to happen?

Bitcoin Tax tips and the IRS

There is no doubt that more attention is being garnered by the IRS with regard to Bitcoin, Ethereum and other cryptocurrency transactions.  According to Google Trends search data, the rising price of Bitcoin and other digital currencies, the increasing interest, popularity and growth will only continue.

Due to this significant interest, there are many questions regarding the tax consequences of purchasing, selling, exchanging and holding digital currencies.  Be aware of these many Bitcoin aspects as you don’t want to be caught having tax problems with the IRS.

How does Bitcoin or cryptocurrencies work?

Cryptocurrencies are digital or virtual currencies that can be shared instantly online, free from government or corporate interference, also known as decentralized blockchain.  Money is made by buying and selling Bitcoin on a crypto currency exchange.  In doing so, an investor converts wealth from bitcoin to U.S. dollars to other national currencies, back to dollars or Bitcoin.

Some of the advantages of cryptocurrencies, such as Bitcoin, include:

• User anonymity (actually bitcoin keeps all transactions on a ledger so IRS can use blockchain to follow transactions)
• No third party interruptions (unless you use  a third party wallet)
• Non-taxable purchases
• Low transaction fees  (bitcoin fees are getting higher)
• Not bound by exchange rates or interest rates
• Mobile payments
• Transactions take place at the same speed, regardless of where sender and receiver are located (but dependant on the miners)
• Cannot be counterfeited and transactions cannot be reversed arbitrarily

See Investopedia: http://ift.tt/2jpCv34; See also http://ift.tt/2EuQ2iI.

How is Bitcoin taxed?

Bitcoin is definitely global, but taxation issues differ from country to country.  In March of 2014, the IRS recognized virtual currency by publishing guidance found in IRS Notice 2014-21.  It established that Bitcoin and other cryptocurrencies are treated as property (not as currency) for U.S. Federal tax purposes and that general rules for property transactions apply.

Due to this classification, everyone that deals with Bitcoin will be labeled basically as an investor and must deal with the complex and sometimes grueling reporting requirements and significant ensuing taxes for its use.

Thus, the IRS is treating the income or gains from the sale of a virtual currency, such as Bitcoin, as a capital asset, subject to either short-term (ordinary income tax rates) or long term capital gains tax rates, if the asset is held greater than twelve months (15% or 20% tax rates based on income).

Other general tax principles apply to bitcoin in the following ways as cited by the IRS:

• Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
• Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
• The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
• A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.

Bitcoin Tax tips for Reporting to the IRS

For most investments, we receive a 1099 showing taxable gains.  This is where things get dicey.  For Bitcoin and cryptocurrency transactions, there are no official notices given.  It is up to the individual investor to report the transactions.  Taxpayers must generally file form 8949 along with 1040 Schedule D (see also Schedule D instructions) when reporting Bitcoin and other cryptocurrency transactions.

Tax reporting compliance is extremely low, however.  Case in point, out of 480,000 investors utilizing a website called Coinbase, only 802 investors reported their gains or losses to the IRS between 2013-2015.  Due to this lack of reporting, the IRS was able to force Coinbase via Court Order to hand over 14,000 of these investor records from 2013-2015.

So, be sure to report as the IRS is becoming very aware of this non-compliance where you could potentially be viewed as engaging in tax fraud.

What does the future hold for Bitcoin

The IRS is definitely tweaking more of the IRS code to take advantage of Bitcoin and other cryptocurrencies.  As described in this Fortune article dated December 21, 2017, the IRS closed the following “loophole” with regard to cryptocurrencies:

“The tax act in Sec. 13303 amends IRC Section 1031 (a)(1) to delete “property” and replace it with “real property” … So, you can see that now I can no longer take the position that my Bitcoin to Litecoin exchange was a like kind one under Sec. 1031, and I have to recognize the gain when I do it.”

Unfortunately, the IRS wants its cut so be sure to keep abreast of where they stand on cryptocurrencies.  Be sure to look into their latest development:  IRS deployment of special software to identify Bitcoin tax cheats.

Cryptocurrency investments, such as bitcoin, are no doubt risky and highly volatile.  It is important to stay ahead of the game and especially the tax changes in this area and seek the advice of a knowledgeable tax attorney.  The San Diego Tax Attorneys at Delia Law have many years of tax experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation at (619) 639-3336. We look forward to helping you.

This Bitcoin tax tips blog post is not intended as legal advice and should be considered general information only.

 

Keywords:  Bitcoin, cryptocurrencies, digital currency, virtual currency, tax problems

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IRS tax resolution tips – 3 things you can do for 2018

TOP IRS tax resolution tips – 3 things you can do for 2018

Do you owe tax debt going into 2018? This is a great time to commit to a resolution and get out of the doghouse with Uncle Sam.  Consider these three top IRS tax resolution tips to get a head start:

1. File on time or get an extension

Always file on time!  For 2018, personal tax returns for tax year 2017 are due by April 17, 2018 and filings for extensions are due October 15, 2018.

Most taxpayers that have tax debt believe that if they can’t pay off what they owe, then what is the point in filing.  This should not be a reason not to file.  You are way worse off not filing and here is why:  the IRS tacks on failure to file penalties AND failure to pay penalties.  So, it is a good idea to at least file to eliminate the failure to file penalties.

Penalties are pretty nasty and can easily comprise most of your tax debt.  They are based upon what you owe and the amount of time that has passed from when a return or payment was due.  That means that the sooner you file, the better – even if you can’t pay. Filing also helps you so you know what you actually owe and it starts the statute of limitations on the IRS collection statute.

2. Open your mail and contact the IRS if necessary

It is not unusual for many taxpayers to ignore any type of mail from the IRS.  Many do not want to face the threatening letters and just let them pile up in the corner (note:  make sure they are not fake or fraudulent IRS letters).  This is the worst thing you can do.   Most of the time, it’s not that bad.  Generally, the issues can be fixed pretty quickly and if not, a resolution is always available.

If you do not understand something in your tax notice or simply disagree, do not be afraid to call the IRS for clarification. It is impossible to resolve your tax problems if you cannot make this important step.  And, if you do not want to hassle with the IRS at all, just hire an experienced tax attorney to take over.

If you do decide to contact the IRS, be sure to have your notice in hand.  On the notice, there is generally an address and phone number of who you should call.  If you cannot find your notice, you can always call the IRS at 1.800.829.1040, Monday – Friday, 7:00 a.m. – 7:00 p.m.

3. Hire a great tax advisor for prevention and tax attorney for tax resolution

To prevent IRS tax problems and keep you on track, it is a great idea to have a great tax advisor on hand.   It is best to have someone reliable for the long run, who will hold themselves responsible if something goes wrong.

If you end up owing taxes and cannot pay it all off, you may need someone to help you out if you run into trouble in resolving the issues. The best professional to call is an experienced tax attorney for tax resolution.  You want someone who understands your personal situation along with your tax issues that can negotiate and communicate well with the IRS to resolve your tax matters.

If you cannot pay your IRS tax debt all at once, do not give up thinking it must be all or nothing. Keep IRS collections at bay from liens, levies, and other collections activities by hiring a tax attorney and working out a resolution, such as a payment plan or offer in compromise.

A tax attorney can also assist you in figuring out what you are doing that is causing you to run into these tax problems.  There may be some big or even small changes that need to be made.  Some of the common problems include: withholding and claiming the correct number of exemptions, incorrect filing status, overlooking deductions or claiming them wrongly, and underreporting of income (including foreign income).

Taxpayers needing assistance in dealing with IRS tax problems should seek the advice of a knowledgeable tax attorney.  The San Diego Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation for tax resolution at (619) 639-3336. We look forward to helping you.

This blog post is not intended as legal advice and should be considered general information only.

 

Keywords: Top IRS tax resolution tips,  IRS tax problems, tax resolution, tax attorney IRS tax debt, tax issues

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Liked on YouTube: Edmonton day trading course June 2017

Edmonton day trading course June 2017
Edmonton Day Traders http://ift.tt/2AsJJxg is a trading community that offers information and various courses to help traders learn the secrets of trading no matter what the market direction. The community has invited veteran trader Joel Wissing to Edmonton from June 10 through June 12, 2017 to lead this exciting workshop. Learn more about these day trading courses here: http://ift.tt/2qQ4Ghw Those who want to learn how to trade stocks, futures and gold trading can benefit from this 3-day seminar. Edmonton Day Traders and Drayton Cook are inviting Joel Wissing to lead the training session in trading and risk management. http://ift.tt/2As3GEO Our Day trading course trains traders through high impact learning activities to manage risk, take risk, push the button, be responsible for trades and keep on the right side of your trades. Our live trainings focus on price action, settings of the market and the Market Maker mentality and precise entries. The emini S&P500 day trading course will show you how to take profit out of the market, manage your account for income and capital appreciation. After the course we have live trading room to collaborate and trade together. For experienced traders and institutional traders you will get a psychological break through of clarity and perfect your entries and risk management, For beginners you will learn the settings of the stock market, price action and psychology necessary to build your accounts. SUBSCRIBE TO OUR VIDEOS! Follow Us on Twitter: http://ift.tt/1N5fsp2 Add us on Facebook: http://ift.tt/1UnNMKV linkedin: http://ift.tt/1N5fsp4 Calgary Day trading course http://ift.tt/1UnNK5K Montreal Day Trading course: http://ift.tt/1UnNK5L daily chart Day trading course economy Emini futures live trade room financial terrorism learn how to trade market makers Gold Trading Oil Trading Bond trading Stock Market S&P 500 S&P 500 day trading S&P 500 day trading course S&P 500 live room S&P500 day trading workshop Stock Trading technical trading patterns trading psychology Bull Channel Bear Channel Pennant Flag Wedge Candlesticks Japanese Candlesticks Sigma event day trading system breakout trading live trading room Tags: MME day trading course futures options online trading managed charts commodities commodity daytrading forex on line trading software electronic eminis free bull channel bear finance economy financial wall st business cbot nymex nybot comex amex ninjatrader etrade scottrade account currencies etf stocks emini s&p fx nasdaq nq qqqq aapl goog alpha market mkt bullish bearish stock-market analysis indicators technical gold investment aapl oil gold currencies etf stocks emini s&p fx "Joel Wissing" nasdaq nq qqqq goog alpha market mkt bullish bearish stock-market analysis indicators intraday trader scalp trading scalp trader trading online intraday trading swing trader proprietary trading daytrader online trading day trading online day trader day trade day trading software prop trading online day trader stock trading high frequency trading online day trading active trading trading careers trade for a living trading firms bloomberg
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IRS Problems-3 Top Reasons to use an IRS Tax Lawyer

IRS Tax Problems – top three reasons to use an IRS Tax lawyer.

If you are facing IRS tax problems, the best thing you can do is to hire a tax attorney.  Tax problems cause serious troubles and ignoring the problem only makes the situation worse.

Tax law is also extremely complicated.  Tax attorneys are licensed professionals that know and understand the IRS tax code and can prevent IRS abuse and illegal practices.  It would be a mistake to hire a CPA or tax relief company to represent you in any type of IRS dispute.

Hiring an IRS tax attorney is the best way to obtain the best tax relief results for the following top three reasons:

1. Attorney Client Privilege

Upon hiring an attorney, the attorney client privilege is created between an attorney and client.  An attorney cannot testify against their client in court unlike a CPA or non-attorney. CPA’s and non-attorneys (tax resolution specialist) can be compelled to testify against you in court.  What this means is that a client can provide full disclosure about almost anything and the attorney must keep these disclosures secret.  This is especially important in cases where the government has opened a criminal case against you or may do so in the future.

2. Tax Resolution Negotiation

Attorneys are masters of negotiation and of the law.  Why would you hire anyone else to do the job of what a tax attorney was trained specifically to do in law school and beyond?  A Tax attorney can help you negotiate the following to resolve your potential and existing IRS tax debt:

• IRS Offer in Compromise (“OIC”) or IRS Settlement: An IRS tax lawyer can help you negotiate an IRS settlement. If going it alone, most taxpayers do not submit a proper OIC resulting in a rejection and then being stuck paying the IRS back the full debt amount with interest and penalties.

An IRS tax attorney has specific skill and ability to negotiate the lowest possible settlement.  They analyze your financials, strategically position you and your household and select an appropriate settlement amount that will likely be considered favorably by the IRS.  After the application is then submitted, a knowledgeable tax attorney will then negotiate with the IRS on your behalf obtaining optimal results.

• IRS Installment Agreement: If you cannot pay off your tax debt or do not qualify for a settlement, an installment agreement is an alternative. The IRS has four different types of installment agreements: guaranteed, streamlined, partial payment, and non-streamlined. Depending on the time allowed to pay your debt off in a payment plan, a tax attorney can determine the amount that you can pay and negotiate that amount with the IRS.  If you do not have a great negotiator by your side, you may end up agreeing to an amount you simply can’t afford.  This will only cause the IRS to come after you to collect the tax debt in full.
• Stop an IRS garnishment, levy and/or tax lien. Dealing with IRS collections takes a highly trained professional with a specific skill set. Tax attorneys have years of experience at stopping wage garnishments, bank levies, and releasing tax liens. They know how to position you properly to reflect financial hardship in order to reduce your potential IRS payment plan or to place you in a currently not collectible status (showing no ability to pay).
• Tax Audits: An IRS tax attorney has the knowledge and confidence to effectively represent you in a tax audit to make sure that the assessment made by the revenue agent is not more than what you need to pay. There is much negotiation in a tax audit.  Many occasions in an audit, an attorney must negotiate certain deductions taken.  This requires detailed legal analysis under the tax code as to why you or your business is qualified to take such a deduction.  This can mean saving you thousands of dollars.

Do not make the mistake of going to an audit by yourself. This can be catastrophic causing the IRS to disallow several deductions, attributing income to you and allowing the IRS to obtain more information from you than you are required to give by law.  Also, the IRS commonly expands your audit to multiple years, making you responsible for further disallowed deductions and more taxes owed. That’s why you should do it right the first time around and hire a tax attorney.

• Removal of IRS Penalties: Obtaining a penalty abatement generally requires some argument…and tax attorneys are excellent persuasive writers. To get penalties removed, the IRS requires “reasonable cause” of why abatement should be warranted. A tax attorney must do the appropriate research and apply the legal research to the facts of your case. Once complete, a tax attorney must draft a proper memo that will convey to the IRS why you deserve to have your penalties abated.

Additionally, what is great about hiring a tax attorney to negotiate with the IRS is that they generally have some sort of rapport or relationship with local IRS agents and revenue officers.   This can be important to a positive resolution to your case.  This creates a business relationship that allows for the best possible tax settlement and audit outcome for clients.

3. Tax Court Litigation

Only a tax lawyer can represent you in tax court if you don’t want to represent yourself. Tax court is appropriate if you receive rejections from the IRS with regard to all tax resolution options at the administrative level. Your attorney will cross-examine IRS officers or agents and find any wrongdoing. They can also negotiate with opposing IRS counsel to lower your tax liability.  However, it is best to negotiate at the administrative level as attorney’s fees for tax court can be pretty hefty.  Get a good tax attorney at the very beginning so you can avoid going to tax court.

Taxpayers needing assistance in dealing with IRS tax problems should seek the advice of a knowledgeable tax attorney.  The San Diego Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS.  Please call for a no-cost tax attorney consultation for tax resolution at (619) 639-3336. We look forward to helping you.

This blog post is not intended as legal advice and should be considered general information only.

 

Keywords:  IRS tax attorney, tax attorney, IRS tax lawyer, tax lawyer, IRS tax problems

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