IRS Problem Resolution, IRS Tax Problems No comments yet

IRS Tax Liens – How To Release Them

By admin on January 27th, 2012

While IRS Tax Liens are not as serious as a levies, they are a warning shot across the bow and if action is not taken to satisfy the IRS, a levy or wage garnishment may be in the works. A lien will prevent a property owner from selling their home until the amount in question has been paid, or the lien has been removed by a court order. The way it works is should the property owner sell their property, the IRS will take the money owed from the amount from the sale. Obviously this will keep a property owner from choosing to sell any property with a tax lien.

New tax laws set in place in 2011 have made tax liens somewhat easier to remove. If the taxpayer owes less than $25,000 and is able to set up an installment agreement or other solution with the IRS, they may release the lien.

Below are several other ways under the law a taxpayer can have a lien released from their property. The first is obvious but unlikely to be a solution for most: Pay the total amount owed. Naturally for most taxpayers with a lien, if they could afford to pay the entire amount owed, they would have done so. However may people do not realize they can use credit cards to pay the IRS. A taxpayer may be able to use a combination of credit cards cash and loans to pay the IRS. This is advisable if possible because in general the amount of interest generating from back taxes will be higher than a reasonable credit card or other loan.

Another more likely path is to enter a payment plan or so called, installment agreement with the IRS. An installment agreement will allow a taxpayer to pay monthly payments on their tax debt, the restriction is the payments need to cover the total amount owed within three years. This time restriction will keep a limit on how small of a monthly payment an be agreed upon. It should also be noted once in any sort of agreement or compromise with the IRS, failure to make a payment may nullify the agreement. A direct debit arrangement with the IRS can allow the taxpayer to have the lien on their property released.

Filing for an Offer In Compromise can also be a way to have the IRS release the tax lien. It should be noted however only a small percentage of taxpayers with back taxes actually will qualify for an offer in compromise. The process of negotiating an offer in compromise can be a lengthy and complicated ordeal and it is highly recommended an experienced tax attorney is hired to work with the IRS on your behalf. Upon successful offer in compromise the tax lien should be released, again should the taxpayer fail to make the agreed payments the offer in compromise could be nullified and the IRS will resume collections efforts.

As in many court actions you may file an appeal to dispute the lien. The must provide taxpayers written notice of the lien within 5 days of it being filed. On the written notice will state a Notice of Right To Request A Hearing. This allows the taxpayer 30 days from the notice to appeal the lien. This strategy should thought through and only attempted if you have a realistic chance of winning the appeal. One consequence of appealing the lien is that the appeal will be recorded on your credit report as such it is advised to consult a tax attorney for the best options prior to taking action.

Tax liens like any IRS problem can be complicated, frustrating and time-consuming to straighten out. It is highly recommended that you do not go it alone when confronted with this issue. Hire an experienced tax attorney and they may be able to quickly arrange a workable agreement that results in removal of the lien from your assets.

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Stop an IRS Levy or Lien by Calling a Tax Professional

By admin on June 3rd, 2011

Receiving notice of an IRS levy or lien can be a very frightening time.

Just the thought of the IRS seizing all of the money in your bank account(s) or taking your state income tax refund or any payments you may normally receive from the federal government can be unbearable. When an IRS levy, such as a bank levy, is issued, the bank is legally obligated to immediately freeze any and all of your accounts. The bank must then hold those funds for 21 days, giving you time to resolve the debt. If you have not resolved the debt in those 21 days, the bank must send those funds to the IRS.

And to think the IRS can actually seize and sell your personal property can be financially and emotionally devastating. Unfortunately, it does happen, although rarely. The IRS can take and sell any property, such as a boat, car or even a house.
At the Law Office of Mary King PL, we never advise any taxpayer to take on the IRS themselves, especially if it involves an IRS levy or lien.

Mary King can begin work on your case by requesting a Stay of Collections for up to 90 days. If the Stay of Collections is granted, the IRS will not contact you about your back taxes for up to the 90-day period granted. And it gives Mary King the time needed to negotiate a better settlement, whether with an Installment Agreement, Offer in Compromise, or another form of resolution.
According to the Fiscal Year 2007 (Oct. 1, 2006 through Sept. 30, 2007) IRS Enforcement and Service Statistics, nearly 3.8 million levies were issued against taxpayers. That number increased 17 times since fiscal year 2000 when just over 200,000 IRS levies were issued.

But that’s not all. In the same fiscal year 2007, the IRS filed nearly 700,000 liens against taxpayers, an increase of 407 percent from fiscal year 1999 when 167,867 liens were filed.

If you receive an IRS levy or lien notice, contact us immediately. When you hire Mary King, you can be comforted by knowing that our Tax Team has years of experience dealing with the IRS

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Get a Penalty Abatement With the Help of a Tax attorney

By admin on June 2nd, 2011

How to take an advantage of a Penalty Abatement Opportunity

The first step is to determine why the IRS assessed a penalty, and look for the mistakes they might have made.

Taxpayers are usually penalized for one of three possible situations: A mistake on the income tax return, filing returns or paying taxes late, or fraud.

If the IRS has accused you of one of the first two causes, it may be very easy to wipe out your tax penalties. In the case of fraud, you may be able to obtain penalty abatement by demonstrated that you acted in good faith to the best of your knowledge.

With the help of a tax attorney, you can sometimes get penalty abatement fairly quickly and easily. This is because the IRS is notorious for making mistakes in their records. You may have reported your income truthfully, but the IRS claims you made an error.

If this is the situation, a tax attorney can request your records from the IRS, prove that you were correct, and remove your tax penalty.

Likewise, if you file your income tax return late or make late payments due to an IRS error, a tax attorney can probably help you. It’s a simple matter of obtaining the records, pointing out the fault, and requesting penalty abatement.

Sometimes, however, the government hasn’t made any mistake. This doesn’t necessarily mean you can’t get penalty abatement. This just means your tax attorney will need to go to the second phase of a penalty abatement strategy.

At this point, the reason for assessing the penalty is accurate, but you can still demonstrate that you don’t deserve it.

If there were special circumstances that made it difficult or impossible to file your tax return accurately and on time, your tax attorney can make this argument to the IRS. This part of the penalty abatement strategy is called “Reasonable Cause.”

For example, a major life event such as a divorce, a death in the family, or relocating could cause you to lose or misplace your tax records. A fire, flood, or burglary could have the same result.

In fact, the IRS definition of reasonable cause is fairly open and broad. You just have to demonstrate that your good faith efforts were thwarted. If you made a sincere effort to file accurate returns and pay your tax on time, an experienced tax attorney may be able to obtain penalty abatement for you.

Finally, if your efforts at penalty abatement still don’t succeed, you have one last refuge: An Offer In Compromise (OIC).

An OIC is essentially a deal with the IRS. You convince them that you can’t or shouldn’t pay your entire tax bill, and offer to settle the case by paying a lower amount. If your offer in compromise succeeds, your initial tax bill will be reduced, and penalty abatement is often a part of the deal.

All of these tactics depend on strict record-keeping and timely follow up. You need to know the relevant laws as well as the IRS revenue officer who is handling your case. And you have to know your own financial record even better.

This is why an experienced tax attorney can help you win penalty abatement. A tax attorney will focus on the details of your case, while the IRS agent is dealing with multiple cases.

Ultimately, this attention to detail is your best chance at penalty abatement. If you can catch the IRS making an error, or prove that you were held up by circumstances beyond your control, then your tax attorney can probably obtain penalty abatement for you.

Attorney Mary E King – a Florida Bar member, has personally helped her clients to resolve their
IRS tax problems.

Call Tax Relief Attorney Mary E. King and put the IRS behind you. Get IRS Help Now Call: 941-906-7585.

IRS Problem Resolution, Tax Laws and Politics, Why a Tax Expert Matters No comments yet

Offer In Compromise Streamlined to Aid Troubled Taxpayers

By admin on May 16th, 2011

Over the years as I have been representing clients who have IRS problems, the IRS has been strict in its official requirements for accepting an Offer in Compromise (OIC). However, over the past year, with the downturn in the economy, the IRS has relaxed its unofficial position on its requirements for accepting an OIC, as well as other tax debt settlement options. Therefore, I have seen more taxpayer clients who have been able to qualify for an Offer in Compromise.

Generally speaking, an Offer in Compromise is where the IRS accepts less money than the taxpayer owes to settle their outstanding liability with the IRS. The IRS will only accept an OIC when all other tax collection alternatives have been exhausted. Other IRS tax collection alternatives may be a short extension of time to pay, an installment agreement (making monthly payments until the debt is paid in full), full payment of the debt or hardship status. Hardship status is where the taxpayer is unable to pay anything against their tax liability at the present time. It is usually a temporary solution due to unemployment or illness. Finally, a taxpayer may qualify for a bankruptcy discharge of the tax liability.

When the IRS considers an OIC, it is looking at the taxpayer’s Reasonable Collection Potential (RCP). The RCP is how the IRS determines whether or not a taxpayer has an ability to pay his tax liability in full. The RCP is based on the taxpayer’s assets such as real property, automobiles, bank accounts and any other assets. In order to come up with the total RCP, the IRS adds the taxpayer’s future anticipated income and then deducts any allowable expenses. Please note that I stated allowable expenses. The IRS has certain allowable expense standards and any expenses which are in excess of those standards must be proven to be necessary before the IRS will accept them.

There are three (3) categories of OIC’s: Doubt as to Collectibility; Doubt as to Liability; and Effective Tax Administration. Doubt as to Collectibility means that the IRS believes that it will not be able to collect the full amount of the tax owed based on the taxpayers ability to pay. Doubt as to Liability means that there is a legitimate doubt that the taxpayer owes the amount the IRS has assessed to the taxpayer. Effective Tax Administration is where although there is no doubt that the taxpayer owes the taxes and the taxpayer could pay the taxes, exceptional circumstances exist which allow the IRS to waive the amount due when the taxpayer demonstrates that it would create an economic hardship.

As I indicated earlier in this article, the IRS does appear to be trying to help struggling taxpayers in these difficult economic times. In fact, it appears that the IRS is even trying to look out for taxpayer’s FICO scores. Traditionally, the IRS did not care about what their tax debt collection efforts have done to taxpayers, their credit reports, their ability to borrow or their business reputations with their customers or vendors. However, in these difficult economic times, many individuals have trouble paying their monthly bills and most businesses are barely keeping afloat. As a result, the IRS is now taking a more friendly approach.

Instead of immediately filing tax liens, the minimum amount before a tax lien will be filed will now be $10,000. That amount will also be negotiable. Tax liens will also be withdrawn if a taxpayer enters into an installment agreement when he owes $25,000 or less. This is AMAZING! Taxpayers who have been making their payments on a regular basis can also request that their liens be removed. It is unheard of for the IRS to withdraw a Federal Tax lien without a tax debt being paid off in full. Additionally, the IRS is making it easier for small businesses to obtain Installment Agreements in order to pay off corporate or payroll tax debt. Finally, the IRS is making OIC’s more accessible to taxpayers.

A new streamlined Offer in Compromise program is now in place, where taxpayer’s who owe less than $50,000 and have incomes of $100,000 may qualify. The previous streamlined Offer in Compromise program was limited to taxpayer’s who owed less than $25,000. However, the current RCP standards are still in place. A second OIC program for taxpayer’s who are recently unemployed, gives the IRS the option to consider only the taxpayer’s current income (if any) and future earning potential. Generally, with an OIC, the IRS must consider the taxpayer’s previous income as well. This gives the IRS greater flexibility in deciding whether or not to accept an OIC and will theoretically open up the number of OIC’s accepted to a greater number of taxpayers.

Finally, the IRS may accelerate lien relief for taxpayer’s who need to refinance or sell their homes. For example, in the past it usually took in excess of 45 days for a tax lien to be released. Now the time frame is much shorter. Alternatively, in certain circumstances, the IRS will make the tax lien secondary to the primary lender in order for the taxpayer to be able to refinance or sell their home for less than the amount of the mortgage.

As you can see, the IRS is making significant efforts to assist taxpayer’s in these difficult economic times. Whether it is making OIC’s easier to qualify for or withdrawing tax liens, the IRS is trying to help taxpayer’s and not make their experience so painful.

If you have a client that has a Federal tax issue, that client needs to address the issue immediately. Unfortunately, procrastinating only makes the problem worse. I am happy to meet with tax clients for a complimentary initial consultation to discuss their options.

Mary E. King is a Florida Tax attorney with the Law Office of Mary E. King, P.L. in downtown Sarasota. She practices in the areas of IRS Problem Solving, Mortgage Foreclosure Defense, Estate Planning and Probate. She can be reached at (941) 906-7585.

Why a Tax Expert Matters No comments yet

Why should you hire a tax law attorney?

By admin on March 24th, 2011

Why should you hire a tax law attorney?

First of all, facing the IRS means that you either haven’t hired an accountant, or your current accountant has done a pretty bad job of managing your finances. This means that it is already too late to hire another CPA to fix your problem. The IRS has already done the math, so you will be wasting resources if you hire another person to do it all over again. You need to focus on areas that you still need to prepare for. What you need is a competent Sarasota, Florida  tax law attorney to help you with the legalities that you will be facing.

There is also the issue of client-attorney confidentiality. While a CPA can be forced to divulge any information concerning your accounts to a court, a tax law attorney is legally exempted from doing so. Remember that this confidentiality can be extremely important during trials.

Another advantage that tax attorneys have over CPAs is a deep understanding of the ambiguity of tax law. CPAs are trained to recognize something as either black or white. They are trained to categorize things very specifically and may not recognize the various gray areas of tax law. A good tax law attorney knows that the law can have a thousand different interpretations and uses this fact to your advantage.

A tax law attorney can also help you by giving you truly complete advice. This is because of the fact that they are experienced in matters involving tax laws. A tax law attorney will be able to give you advice on different legal measures that you can take to solve your Tax problems. A CPA can only help you in terms of fixing your budget or computing your taxes, but can offer very little help regarding how to fix your tax problems.

A tax law attorney, on the other hand, can show you a lot of things you can do to legally get the IRS off your back. A good tax law attorney can help you by giving you various tips on how to compromise with the IRS and end up paying much less than what you might think is your due.

The IRS can use different techniques to intimidate you into paying the amount that they will insist you owe. People who are unfamiliar with the methods of the IRS often pay this amount without taking the time to question why. A good tax law attorney can help you get over your fear of the IRS and meet them on the legal battleground. A good tax attorney will have the resources necessary to help you overcome any intimidation tactics that the IRS may use to force you to pay.

The best reason that you can have to hire a tax law attorney is the fact that taxes are based on laws. This means that taxes are the natural stomping grounds of tax attorneys. They know their ways around it and they know how to survive it.

Tax Laws and Politics No comments yet

Florida Tax Attorney: Keeping Tax Records the Right Way

By admin on March 24th, 2011

Tax laws may seem complicated depending on the state you are in. Florida tax attorneys may have different legal advice compared to a tax attorney in China. This is because the tax system of different states is diverse. Tax law, which is a codified system of laws that covers government levies on certain business or  economic transaction, imposes taxes. These taxes are delivered back to taxpayers by way of government projects. If you failed to do your duty as a taxpayer, you will be punished.

Tax law is a sub-discipline in law schools. They are consultative in nature however; they can be used in litigation purposes. Tax law is crucial in business as well as personal planning matters. If you are facing an Internal Revenue Services (IRS) trouble, you need a Sarasota, Florida  tax attorney to assist and defend you.

Tax laws demand that you keep tax records for the government to check. Records can also serve as proof of your compliance with the tax laws. Nonetheless, many taxpayers have no idea about what records to keep and how long to keep them.

By tax records, it means tax returns and several documents that support your returns like bank statements, receipts, 1099s, and more. These documents are important to fend off the IRS. Your tax attorney will tell you what these records are and how important they are.

However, to make it easy for you, here is a quick review:

Tax returns contain the tax contribution that a taxpayer has to pay. They serve as a good proof that you have paid your taxes moreover; they have to be kept indefinitely. IRS is known for misplacing and losing tax returns so be sure that yours come in handy to circumvent a nasty audit. IRS is receiving millions of tax returns every three months moreover; lost returns can be said to be part of the inevitable. Hence, it is better to keep every single tax return that comes into your possession.

If you are filing your tax returns electronically, better get copies from the filing company. By the way, they are required by law to give you copies. Supporting documents, on the other hand, should be kept for a period of 6 years from the filing of the returns. However, this period can be extended in special cases.

Tax records are vital in case of divorce proceedings. Moreover, it is best to save the necessary documents like financial documents, tax returns, supporting documents, and credit reports, not just for divorce purposes but for other circumstances as well. If you don’t keep it, anticipate encountering a nightmarish chapter in your life. If you intend to keep your tax records in one place for easy find, you can purchase a filing cabinet for that purpose.

If you are lucky enough, you will never need your tax records. However, if you belong to the unlucky few who are audited, tax records will be your saving grace to prove your compliance to tax laws.

No case is doomed to failure. However, you also need to do something to save yourself from doom. You have to take the necessary moves to preclude tax penalties and debts from quickly piling up and strangle your finances. Simply, you have to end your tax nightmare and get on with your life. Tough questions must be answered and tax burdens must be given timely solution. Dealing with tax problems is nerve-racking. Battling them alone is so tough. However, doing nothing is dangerous. In addition, the mounting costs and penalties are difficult to bear.

Once and for all, you have to settle you tax problems. Take the initial step and consult a professional Sarasota Florida tax attorney. If you are in Florida, an ideal Florida tax attorney might be just a few blocks away. Or perhaps, he is just one call away.

A professional tax attorney will tell you not to fear the Internal Revenue Service (IRS). Said attorney will have a talk with the IRS about your tax problems. He is expected to know IRS  rules so as to get the best remedy for your tax trouble.

Taxation in the United States covers payment of tax liabilities to at least 3 varying levels of government  local government, state government, and federal government. Local government is getting property taxes and fees. Sometimes, it is also financed by income tax. Consequently, the state government is financed by the combination of sales and income taxes. Finally, the federal government is financed mainly by income tax.

Taxation is an inherent power of the government. It is treated as its lifeblood because it is the main source of the states revenue. The revenue flows and maintains the life of the state. This is reflected in government programs, infrastructures, and the like.

Without taxes, it is hard for the government to survive. In addition, the imposition of taxes is aimed at supporting governments operations and functions. Taxes are also used to influence the performance of economy, redistribute resources among citizens, and to modify employment and consumption patterns within an economy.

There are several types of taxes. The first type is income tax, which is a progressive tax. To make reliable collection, the government allowed direct withholding. Another type of tax is the capital gains tax, which is the tax imposed on the profit from the sale of an asset.

Corporation tax is the company’s tax on the profits. Poll tax, also known as the capitation tax, is the tax levied on a set amount per person. Excise tax, on one hand, is an ad valorem tax based on the declared value or purchase price of an item.

Another type is the sales tax, which is levied on a particular sale of a commodity. The final consumer is liable to pay said tax. Tariffs are tax on the importation and exportation of goods through a political border. Value added tax (VAT) or the goods and services tax is the equal of sales tax. However, the former reduces market distortion. Property taxes are based on the value of the involved property. This is usually imposed on real estates.

Stamp duty is the charge for the stamp needed in a particular document. Inheritance tax, on the other hand, the tax imposed on the transfer of property by virtue of one’s death.

Your hired tax attorney must know these taxes as well as the taxation system of the state for you to take advantage of the best legal remedy available to you. Choose nothing but the best.

The IRS is probably the most feared arm of the United States government. There are people who fear the IRS more than they do the FBI or the CIA. In facing this branch of the government, you will need a lot of help. While some people may advice you to get a Certified Public Accountant, there are lot of reasons not to do so. In fact, what you should do is get a tax law attorney.

IRS Problem Resolution, IRS Tax Problems No comments yet

Was Your Tax Lien Waived?

By admin on February 16th, 2011

According to a new report by the Treasury Inspector General, the IRS has waived essentially $1.4 billion in delinquent taxes between 2002 and 2008 by failing to file federal tax liens. In order to protect its claims against delinquent taxpayers, the IRS must file a federal tax lien, which establishes the IRS’ priority among other creditors. However, in certain cases, the IRS can decide not to file a tax lien. When the IRS agent decides not to file a tax lien, they must document the taxpayer’s file to state the basis for their decision not to file the tax lien.

According to this report, the IRS agents did not document the rationale for not filing liens for an estimated 2297 taxpayers who owed $72 million in delinquent taxes. The report also found that the IRS did not file liens on closed taxpayer accounts based upon a certain dollar amount. This certain dollar amount represented taxpayer’s whose accounts were closed based upon being currently noncollectible for tax years 2002 through 2008. These taxpayers were unable to pay anything on their accounts and consequently, the IRS did not conduct any collection activity on their accounts. As a result of this report, the Treasury Inspector General has made eight recommendations to ensure that in the future all IRS agents document their reasons for not filing tax liens against delinquent taxpayers.

If you are concerned about outstanding taxes due to the IRS, please call Florida tax attorney Mary E. King at (941) 906-7585 to discuss your options.

Why a Tax Expert Matters No comments yet

Hire A Business Tax Attorney

By admin on February 10th, 2011

Running a company or just running the personal finances is not always going to be so easy. In fact, those who do not follow the law and pay their taxes might run into a lot of trouble with the IRS. There are many out there who will turn to a tax attorney for the right amount of help. There are numerous tips to look into before hiring an individual for the much needed job. Those are in need of various services including strategic tax planning will need to make sure that they use this guide right now. This is the best way to seek a tax attorney – hire a business tax attorney within the shortest amount of time possible. Take note of the services that are offered to individuals and how the professional will be able to help. The sooner the search begins, the sooner the taxes can be taken care of so get started.

It is important to sit down and assess the current needs. Those who are thinking of opening their own business do need to ensure that everything is put in order, before the doors even open. This is going to include hiring the right people to guide the individual through the process so that they do not run into any trouble. The business owner needs to sit down and list out their taxes and all of their finances so that they can get the right amount of help. If the individual has no idea what they need in the way of services, they are not going to get very far so take care of this step well in advance.

Once the needs have been listed, start looking into various tax attorneys that offer various services. Strategic tax planning is a very effective service that people are signing up for. This helps the business owner to see what they need to be doing in terms of paying taxes and taking the taxes out through the entire year. This is typically what gets people into trouble so make sure that the right strategy has been laid out by the attorney hired. On top of that, getting the right help for debt relief for business owners is a great services to turn to. Individuals who are swimming in tax debt need to do something as soon as possible to get a handle on the situation and square everything away with the IRS.

When the time comes to start looking for the right individual for the job, take the time out to look into their overall experience level. If the professional does not have a very impressive resume or case history, it is going to be incredibly difficult to get through any and all business or even personal tax issues. In order to find out about the overall experience, be sure to get on the phone and talk with a couple of offices or individuals. Ask them questions about their services and find out how they are going to be able to help out. This is going to make it much easier to get back on the right track within a very short amount of time.

It will also be up to the individual to determine if they want to work with a professional firm, or just an individual. This boils down to personal preference and what the individual actually feels comfortable working with on a daily or weekly basis. If there is a lot of red tape to cut through, working with a firm is almost like having a team to help out with everything so keep that in mind. Conduct a local search in order to see which companies are available and go from there. It might also be a great idea to sit down and make some phone calls from home or the office to save some time and narrow down the search for the right tax attorney.

Reading reviews about these individuals is a great way to get ahead. Those who are having a hard time getting in touch with someone that they can trust will be able to rely on consumer reviews. Individuals who were satisfied or dissatisfied will make sure that they spread the word through these reviews. Most of them can be found online at reputable sites, which will easily point the individual in the right direction. Read through these after talking with some professionals before actually hiring someone. Take the time to read and make sure that the very best person is chosen for the job.

Once the right firm or individual has been located, be sure to discuss all of the fees. Every firm is going to have a certain fee that they charge per case or per session that will need to be covered by the client. If the fees are too high, this is going to make the situation even worse. Make sure to take just a little bit more time to find a reputable and affordable attorney that can help out. Making the right comparisons is going to help the client see where they need to turn.

It is important to take care of this business as soon as possible. Those who wait around and delay the process are only going to be harming themselves in the future. Any individual needs to take care of their tax debt and their yearly taxes so that they do not get into any trouble. Do not waste any time, start the search right now in order to see who can take care of the rest within the shortest amount of time.

In order to hire a business tax attorney, individuals should follow along with these excellent tips. Paying taxes and staying on the right track is not always easy, but there are individuals who are going to be able to get great services through reputable firms and professionals. Once the right individual has bee hired, it will be easier to move through the process and stay out of any and all tax trouble. Remember, these problems are not going to go away so take care of them right now.

IRS Problem Resolution, Tax Laws and Politics No comments yet

Paying Taxes Twice on Military Benefits?

By admin on February 9th, 2011

Due to a confusing and arguably unfair provision in Federal Law, military spouses may be paying taxes twice on military benefits. There are an estimated 57,000 military spouses who may be affected by this Federal provision. These are spouses who received Federal benefits as a result of their late spouse’s military service and have now remarried. After the military spouse passes away and the surviving spouse has begun to receive benefits, in the event that they remarry, the Federal Government can request the full amount of the government benefits to be repaid. If the surviving spouse does not cooperate and set up a repayment plan, the government can begin garnishing funds to be repaid. The problem is that when the surviving spouse received the benefits initially, they paid taxes on the benefits. When they repay the benefits to the government, they are required to pay the full amount back, so they are essentially paying taxes twice on benefits they will never have received.

If you have questions about this or any other tax issue, please call Florida Tax Attorney Mary E. King at (941) 906-7585.

Why a Tax Expert Matters No comments yet

When To Hire A Tax Attorney

By admin on February 9th, 2011

Very few people look at the calendar with wide eyed anticipation of that wonderful day when they must submit all their financial paperwork for the year. As a matter of fact, staring at that particular deadline is responsible for a considerable amount of avoidable stress and unhappiness in the general population. This is probably when to hire a tax attorney if you have need of one’s services.

It can be very confusing and frustrating. There are so many boxes to check and spaces to fill out that it can be overwhelming for many people. Scrabbling through shoe boxes full of receipts and invoices, digging through filing cabinets stuffed haphazardly with uncollated paperwork, and trying to keep everything organized on the desk is more than most people are willing to do, legal requirement or not.

Things can get even more delicate and confusing when the federal revenue service gets involved. The Internal Revenue Service in the United States of America is viewed with suspicion and a degree of hatred by many people who have had direct dealings with them. While this opinion may not be one hundred percent warranted, it exists and is so entrenched in the culture that it is the frequent subject of comedy material.

There seem to be many reasons why the IRS would want to audit someone. This may be the seed of the confusion and fear that the average citizen feels toward the organization. In truth, there is only one common reason and it has to do with the perception of incomplete or fraudulent entries on a federal income tax return. Other situations in which the Internal Revenue Service might choose to perform an audit include taxpayers whose annual income fluctuates wildly, returns which claim unusual or conveniently rounded off deductions, and people who are paid in cash or receive considerable outside tips.

So while the lurking threat of an audit without reason or warning can be unsettling to people, the fear is largely unfounded. The IRS will make every attempt to verify and corroborate the reported incomes and deductions, as is their responsibility, and only in cases where fraud is suspected or highly probable will they actually bother to perform the audit.

That having been said, there is no guarantee against audit which can be offered to a business owner or an individual taxpayer. Even in the most conscientious cases where the return has been carefully and expertly prepared, there is still the possibility of the Internal Revenue Service deciding to closely inspect the supporting documentation for the return.

This can be a traumatic event. Not only is there the feeling of suspicion and mistrust towards the IRS on the part of the taxpayer, the initiation of an audit often implies a similar scepticism on the part of the auditors. The thought that they would not have looked so closely at the tax return if it had not been a bit suspicious is a powerful idea to overcome, and many people immediately assume that they have made a mistake and the audit is their fault.

This of course only applies to honest people who have not manipulated their financial information or misrepresented their employment to the Internal Revenue Service. People who submit deliberately fraudulent documentation have absolutely called the audit down upon their own heads, and they really don’t have anything to blame but their arrogance.

Even so, an audit is a major event and it is absolutely important to make sure that the auditors behave in a fair manner. Any monies which are determined to be owing should be review and verified carefully. Just because they work for the IRS, that doesn’t necessarily imply that the individual auditor assigned to a case is incapable of making mistakes themselves. Under no circumstances is it a good idea to accept the statements of the Internal revenue Service without verification, just as they would not think of accepting unverified statements themselves.

Proper protection for businesses and individuals is most appropriately provided by dedicated professionals with significant experience in the legal aspects of the federal taxation system. From the outset it is a good idea to have an annual tax return looked at by an accountant if not prepared entirely by them. In this way the risk of audit can be reduced by making sure that no overtly problematic or potentially suspicious entries exist. An accountant is no good once the audit has been called, however. The government accountants will do it themselves, and any discrepancies will be noted and referred for later investigation.

In the case of an audit it is usually a very good idea to secure the representation of a tax attorney. These are lawyers who are experienced in protecting their clients from the legal pitfalls which can be problematic for small business owners or other individuals who run afoul of the tax officials. These lawyers are skilled in litigation and negotiation, both of which are necessary to determine if the Internal Revenue Service’s claims of owed money is legitimate. These professionals may also be helpful in negotiating achievable payment schedules if the amount owing cannot be reduced.

It is important to remember and understand the difference between a tax attorney and an accountant. A Certified Public Accountant is responsible for making sure their clients do not submit fraudulent or misrepresentative returns in the first place. They are the taxpayer’s first line of defense against an audit. A lawyer skilled in taxation, debt management, and litigation will not make sure your tax forms are submitted properly, without error, and on time. They will, however, protect their clients to the best of their ability and with all due zeal should the IRS choose to audit their client.

Obviously, the best course of action is probably to employ a certified public accountant to help prepare and evaluate the initial tax return. If this step is attended to carefully and no deliberate fraud is perpetrated, the likelihood of an audit becomes very small. “Very small” is not a synonym for “non-existent” however, and there may be eventual dealings with the tax collectors even by the most honest of business owners. Anyone can be the subject of increased IRS scrutiny, and those who find themselves under audit have discovered when to hire a tax attorney.