IRS Tax Attorney For Federal Tax Matters

by Louis Meeks on December 15, 2014 in Blog

WHY AN IRS TAX ATTORNEY SHOULD BE YOUR FIRST CALL FOR ANY FEDERAL TAX MATTER

When you receive a notice from the Internal Revenue Service for taxes owed, they prominently display that the amount owed is “due immediately.”  Most likely, the amount asserted by the IRS is more than something that you can pay outright.  Upon further review of the notice, you find that they do provide a telephone number for contact.  You then wonder, should I go ahead and contact them immediately, even if I plan on talking to an IRS tax attorney regarding this debt?

If you cannot fully pay and/or have some questions about the source and/or amount of the liability asserted in the notice, STOP – don’t dial that IRS contact number.  Although the notice may indicate that “immediate action” is necessary, the truth is, in many circumstances, that any sort of collection action such as garnishment or tax liens may not actually be scheduled to occur for months later – especially if this is your first notice.

If you choose to contact the IRS yourself, without any knowledge or idea of the basis for your debt or what types of payment programs you could potentially qualify for, you could unknowingly provide information to the IRS that could be used against you later in the matter.  Similar to the “Miranda warnings” given in potential criminal cases, “anything you say can be used against you” when you talk to the IRS – the only difference is, the IRS doesn’t have to give you this warning before you speak to them!

Also, be advised that, when you contact the IRS regarding that tax bill, they will push you to begin payment on that balance.  Unless you have a thorough knowledge of your income and allowable living expenses at the time of your call, it is very likely you could be placed in an inappropriate repayment program that could cost you hundreds or even thousands of dollars more than you needed to pay.  You could even be put into a program that creates an unnecessary hardship in your life.

For these reasons, as well as many more, contact with an IRS tax attorney should be your first move in any kind of a tax situation that is going to require a determination of liability, determination of the amount of debt owed, and/or negotiation of a payment plan on the tax balance.  An IRS tax attorney knows the best way to go about determining the exact nature of your tax debt, and whether there are any arguments for a reduction or elimination of that debt.  The IRS tax attorney will further be familiar with the programs available in your living situation, and can expertly guide your case into the optimum program for your needs.  Finally, the IRS tax attorney provides that much-needed “buffer” between you and the IRS, which saves you from the stress and aggravation of direct contact with the aggressive collection efforts of the IRS agents.

At Victory Tax Solutions, we have experienced tax attorneys on staff, ready to assist you with your tax matter.  With your first call, you will receive the kind of attention and professionalism that will give you the assurance and peace of mind that is important when dealing with such a stressful issue.  Please call us right away!

©2014VictoryTaxSolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links completely intact.

IRS Tax Attorney

by Louis Meeks on December 15, 2014 in Blog

IRS Tax Attorney

Tax attorneys can handle a wide variety of issues that face taxpayers, from adequate planning, to resolving issues with the IRS, or coordinating the tax aspects of complex commercial transactions.

Like all lawyers, tax attorneys at one point had to go through the gauntlet of law school and the bar exam, but at some point in their career they chose to specialize in taxation. Generally, tax attorneys will focus within a specific sub-set of the practice, such as:

• Transactional planning: When large companies are merging with each other, or executing complex deals, tax attorneys are often brought in to advise the clients of how best to structure payments and characterize income to minimize the tax consequences. This work is often very detailed, and in today’s economy, can require knowledge of both domestic and foreign tax law.
• Litigation: When tax issues cannot be readily solved, and large dollar amounts are at stake, taxpayers will often hire an IRS tax attorney to represent them either before a specialized administrative court (such as the US Tax Court), or in district court. Tax litigation, like all litigation, is often a drawn out process and can require a team of legal experts working together to adequately represent their client.
• Resolution: The most common work for tax attorneys is to help small businesses and individuals resolve tax issues before the IRS and state agencies. IRS Tax Attorneys are well suited to this work as they have a command of not only the regulations that govern how the IRS or state agencies go about assessing and collecting tax, but also have the legal foundation to analyze whether tax is owed in the first place.

To provide an example of how hiring a tax attorney to help resolve a tax issue can be the better move, consider the common experience of taxpayers who have gone years without filing. Frequently, when a taxpayer does not file but earned income, the IRS will prepare returns for the individual. However, as you would expect, Uncle Sam will not calculate the balance owed by the taxpayer in a favorable way. This leaves taxpayers with huge, inaccurate amounts owed to the IRS. An IRS tax attorney can better assess what income was actually owed, and if he or she is qualified, prepare an accurate return to ensure the taxpayer’s balance is (likely) reduced. From there, the tax attorney can also represent the taxpayer before the IRS, assessing what (if any) penalties might be waived, and what the taxpayer’s best resolution is, from a simple installment agreement, all the way through the maze-like Offer in Compromise program.

If you believe you could use the help of an IRS Tax Attorney with experience before the IRS or state agencies, contact the professionals at Victory Tax Solutions. We can be reached at 877-772-0123.

©2014VictoryTaxSolutions.com

Surviving an IRS Audit | Tips on Getting Through the Audit Process

by Victory Tax Solutions on February 23, 2014 in Blog

An IRS Audit is a review of your financial information to determine if the tax reported on your tax return is correct. The IRS may request you to produce various documents to confirm information reported on your tax return. For example, your Audit Examiner may request receipts or statements from charitable organizations to show proof of reported charitable contributions.

To facilitate the audit process it is important to keep the following tips in mind:

• Retain all records. It is very important to keep tax records used to prepare your return. This includes receipts, mileage logs, bank statements, cancelled checks etc. The IRS normally request that you retain records for at least 3 years; 6 years for payroll documents.
• Organize your information. It is important to maintain your records, but your IRS Examiner still has to decipher those documents. Therefore, you must organize your records in a clear format. For example, you can give your IRS Examiner a list of the documents you will be providing.
• Be aware of deadlines. The IRS will give you deadlines to respond to each phase of the audit process. Note those deadlines and try to meet any request by each deadline. Missing a deadline can result in the IRS proceeding with the audit based on its own determination – with no input from you. As a result, you will lose opportunity to defend the information reported on your return.
• Know your rights. It is your right as a taxpayer to receive professional treatment from your IRS Examiner. It is also your right to know why you are being audited. Additionally, you always have the right to be represented by an authorized representative.
• Maintain your composure. The audit process can be very stressful. It is important to approach your IRS Examiner with respect and courteousness to ease the process along.
• The audit is not the final say. If you disagree with the audit findings at the conclusion of the audit, you still have alternative routes. 1) Formally request that he audit is reopened to review your information and provide additional information, 2) Request an appeal, or 3) Pursue a fast track settlement (for businesses).

©2014 victorytaxsolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links completely intact.

So you received an IRS collection notice…

by Victory Tax Solutions on October 9, 2013 in Blog

If you owe money on unpaid federal taxes the IRS will mail you various notices outlining (1) the issue, (2) required response, and (3) how much time you have to respond. Below I have outlined some of the most common IRS notices for collecting unpaid taxes.

Keep in mind that depending on the IRS Agent, these notices may appear in different orders or as different notice numbers.
 

CP14 Notice (You Owe Federal Taxes)

Issue: You have an outstanding tax liability.

Response: Contact the IRS to pay the amount in full or enter into a tax debt resolution.

How much time: Deadline to pay the amount or to make payment arrangements is listed on Notice.
 

CP503 Notice

Issue: The IRS has not received your response to a prior notice and you still owe money to the IRS.

Response: Contact the IRS to pay the amount in full or enter into a tax debt resolution.

How much time: You have 10 days from the Notice date to avoid additional penalties and interest.

Note!!!!: The IRS has authority to file a notice of tax lien if (1) you fail to pay in full, or (2) enter into a tax debt resolution that will not achieve full pay of the debt in a specified amount of time. 
 

CP504 Notice (State Tax Refund Levy; Intent to Levy Other Property)

Issue: The IRS has not received your response to a prior notice and you still owe money. The IRS will issue a levy against your state tax refund. The IRS will also start searching for your other assets to levy.

Response: Contact the IRS to pay the amount in full or enter into a tax debt resolution.

How much time: Deadline to pay the amount or to make payment arrangements is listed on Notice.

Note!!!!: After your state tax refund is seized and if you still have a tax liability, the IRS has authority to initiate a levy on your other property (wages & other income, SSI,  bank accounts, home, car etc). The IRS can also file a notice of tax lien.
 

LT 11 (Letter 1058)  (Final Notice Prior to Levy)

Issue: The IRS has not received a response to a prior notice and you still owe money. The IRS intends to levy your assets.

Response: Contact the IRS to (1) pay amount in full, (2) enter into a tax debt resolution, or (3) request an appeal

How much time: 30 days after the date of this letter.

For more information, please visit the IRS website:

http://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter

©2014 victorytaxsolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links completely intact.