It is really easy to get in a bind when the IRS comes knocking at your door. It can drive many to a state of panic and stress. The good news is that there is a lot a tax attorney can do for you if you fall in this category with NYC tax issues. All it takes is a bit of analyzing, communication, and legal strategies to work out the kinks, and the tax attorney can have you living right again. The most common issues are filing taxes, which leaves many questions, if there are any questions about letters received or the tax laws, if you fail to file with the IRS, or if you want to wipe the slate clean and settle the debts from back taxes owed. A tax attorney can also assist you if you get called in for an audit, the scariest of all.
Questions on Filing Your Taxes
Business taxes and individual taxes have different forms and different measures for completing them. Both must be accurate and without mistakes, because there could be severe penalties or delays if the red flags come up. If you are running a business, especially with employees, you need the law to work for you and not against you. A tax attorney can guide you in the proper steps of what the law states. Another thing to keep in mind is that there are different fees. You have local taxes, state taxes, and federal taxes. Each has its own laws and is strict. Some forms and sections can be confusing, and if you don’t know, a consultant may not be enough. You will need an attorney.
The tax penalties can go as high as 50 percent, so it is better to know for sure. Sometimes you may receive a letter from the government, whether state or federal. An experienced attorney can help explain what they are requesting. In some situations, the letter may be explaining changes, while other times, it may demand an audit. Procrastination is the last thing an individual should do when concerning taxes.
Failure to File
Another pickle people find themselves in is that they forget to file their taxes or are late. Most of the time, the tax deadline is April 15th but has been known to get extended due to the days it falls on or because of government issues. If the government has problems, you do not need to worry, but they will not play or hesitate to raise them if you are late or fail to file. Consulting with a tax attorney can help if you find yourself in this situation. They will know what to do if you have an emergency or a legit reason to delay filing. They can even represent you if needed because speaking with an auditor can be intimidating. Knowing the steep penalties and possible jail time, if the amount owed to the government is substantial, has brought many people to their knees. Getting legal help is the best option.
Settling Debt from Back Taxes
If mistakes are found on tax returns or if there is suspicion of cheating on taxes, the fines on top of the money owed to the government can leave a business or individual owing for many years. Perhaps you need to settle with the IRS or the state government on back taxes owed; then, an attorney can look into the situation and see if there can be a resolution to the matter. In some cases, they may be able to get the penalty lowered or waived. Doing so may reduce the cost enough for the individual to pay off the remaining debt owed to the government. The IRS can be harsh, but they will work with a person if they see you want to complete the payments. An attorney’s voice can only help the situation.
One of the main things to remember is that you only get one chance to make amends. If the agreement fails for any reason, the individual owing the taxes can face worse penalties and never have another opportunity to reconcile. Even if the individual applies for assistance and one number is off, they will throw out the entire agreement. This is why it is best to have legal representation to avoid minor mistakes.
Audits Are the Worst Nightmares
All of the account books must be organized and easy to review. If an individual has too many mistakes that do not add up, the IRS may request an audit. The state tax department may also be called in to review. It is a long process, and the results depend on the individual’s books. It does not matter what is said; all that matters is what is written. A tax attorney can walk you through the steps an auditor will take and assist you before, during, and after the audit.
The worst part is if the individual receives an unfavorable ruling. The attorney can file an appeal if they wish to fight back. It takes someone trained and equipped to go up against the government in appeals.