Tax Problems
There are a multitude of situations that can create tax problems. It is crucial to respond quickly and completely to taxing authorities when notified of such issues. Hone Maxwell LLP’s tax attorneys have resolved many tax problems for individuals and businesses, allowing clients to avoid potentially costly penalties for tax problems – whether created by mistakes or misconduct.
Failing to file annual income tax returns is a common but serious problem. It is essential to prepare and file delinquent tax returns as soon as possible. HMLLP tax attorneys assist in locating and obtaining the necessary historical and financial information from various resources to file compliant tax returns properly. The attorneys also assist in identifying options to reduce the balance owed or create a payment plan. Lastly, there may already be an enforcement action in place and it may be necessary to file the returns in a specific manner to address the noncompliance.
Innocent Spouse Relief may be available to those whose spouses improperly reported or omitted items on a joint tax return. There are a limited number of circumstances under which Innocent Spouse Relief is available. Those who qualify may avoid paying taxes, interest and penalties.
There are a variety of written notices taxing authorities send to taxpayers that don’t always fit the standard situations, such as a tax audit. Some notices are informational only, while others indicate tax problems like tax changes or more taxes owed. Understanding these notices and responding to them appropriately and promptly is essential to resolving tax problems.
The IRS charges interest and penalties on any outstanding taxes. The combined charges for interest and penalties may be greater than the original taxes due. The law allows for the removal or reduction of penalties based on “reasonable cause.” The outcome of a penalty abatement request largely depends on how the case is argued. Therefore, a detailed account of the facts and circumstances that gave rise to the outstanding tax liability is key to a successful penalty abatement request.
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The first step is to determine exactly what the IRS claims you owe and why. Tax problems can involve audits, unpaid taxes, penalties, liens, levies, or unfiled returns, and the best solution depends on the specific circumstances.
Yes. A tax attorney can evaluate your situation, communicate with the IRS on your behalf, identify available resolution options, and work to reduce the financial impact of tax disputes and collection actions.
Ignoring IRS notices can result in escalating enforcement actions, including additional penalties, tax liens, bank levies, wage garnishments, and other collection measures. Addressing the issue early often provides more resolution options.
Yes. Many taxpayers fall behind on filing requirements. A tax attorney can help determine which returns must be filed, address potential penalties, and develop a strategy to bring you back into compliance.
Depending on the circumstances, collection actions may be stopped or delayed through payment plans, appeals, hardship requests, offers in compromise, or other IRS resolution programs.
Common tax problems include unpaid tax debt, unfiled returns, audit disputes, payroll tax issues, penalty assessments, tax liens, bank levies, wage garnishments, and notices of deficiency.
You should seek legal guidance as soon as you receive an IRS notice, discover unfiled tax returns, face collection activity, or become aware of a tax issue that could result in penalties or enforcement actions.