Posts Tagged ‘Pay Taxes’

Be Aware Of Your Rights When You Solve an IRS Problem

Tuesday, February 9th, 2010
irs representation
Most business people or professionals break out into a cold sweat when they get a letter from the IRS regarding the returns filed by them. The IRS or Internal Revenue Service is entrusted by the U.S.Government to collect taxes from citizens.

When you file your tax returns to the IRS, they process the information. You will normally, be intimated by the IRS when they feel that you have submitted incomplete or fraudulent information, or if the tax figures you have calculated do not match with theirs, while filing your returns. They will then send you a letter specifying the information which is required by them and the date when either you or your tax attorney have to meet them to sort out the problem.

In case you personally visit the IRS Office, then there are certain rights, which you can exercise. Whatever talks and issues you settle with the IRS remain confidential. You also have a right to know why you have been called, and the use of information you provide to them has to be explained to you. The IRS employees also have to treat you professionally and with respect. You have the right to complain or write to the employee’s supervisor or the IRS director, if you feel that you are not being treated well.

You can visit the IRS Office in person or you can have your certified public accountant, your attorney or your enrolled agent represent you by intimating the IRS in writing. You can also be accompanied by them during an interview. If you intimate them 10 days in advance, then you can also make a sound recording of your meeting or appeal or examination. As per the law, you have to pay the right amount of taxes and if you are unable to do so when it is due, then you can also pay your taxes in monthly installments. If you are unable to solve your problem with the IRS, then you also have a right to contact the local Taxpayer Advocate Service.

They can help you in solving your problem. In case you do not agree with the IRS decision regarding the amount to be paid or any other clause, then you have the right to get your case reviewed by the Appeals Office. You can also go to court regarding that matter. If the case is decided in your favor, you could also recover some of the administrative or litigation costs. You can also get relief from certain penalties if you can convince the IRS that you had acted in good faith or had relied on the incorrect advice or information of an IRS employee. The interest can also be waived off if they are responsible for any mistakes or delays. If you are entitled to a refund, then the IRS has to pay you interest on that refund, if they delay it by more than 45 days of your claim being passed.

So, when dealing with the IRS, it is better to be well informed rather than ill informed. Knowing what to do and what not to do can make the difference to the case!

By: Kris Koonar

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5 People Who Need to Hire a Tax Attorney

Thursday, January 14th, 2010
texas tax attorney
If you think that being in debt to the IRS is stressful in and of itself, try coming face to face with an IRS auditor or getting correspondence from the IRS listing your back taxes plus the penalties and interest that are quickly accumulating. In other words, if you find yourself in an IRS-related predicament.

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If you think that being in debt to the IRS is stressful in and of itself, try coming face to face with an IRS auditor or getting correspondence from the IRS listing your back taxes plus the penalties and interest that are quickly accumulating. In other words, if you find yourself in an IRS-related predicament, you need to deal with it immediately and you need to enlist the assistance of a professional. So if you find yourself in any sort of uncomfortable position with the IRS, the wisest move you can make is to hire a tax attorney. What might those positions be? Here are five:

1. You pay taxes. Yes, tax attorneys can help anyone, whether a business owner, owner of a large estate, or just a regular citizen. And it’s never a bad move to consult with one regularly in order to avoid future tax problems. Tax attorneys can help you organize your paperwork and keep your records straight, which can reduce a lot of personal stress.

2. You owe back taxes. If you or your business owe back taxes and find yourself unable to pay them in full, you need a tax attorney. There are many reasons why an individual or business might not file back taxes. Some simply don’t think the IRS will notice. Others choose not to pay taxes because they can’t afford to at the time. The truth is that there are employees of the IRS whose sole responsibility it is just to look for individuals or businesses that don’t file taxes. It’s a serious issue to the IRS and they will treat it as such. That’s why you need a tax attorney on your side.

3. You’re negotiating anything with the IRS. You may be negotiating back taxes or addressing an audit. Regardless of what it is you’re discussing with the IRS, you need a tax attorney working for you. Tax attorneys know the lingo. They know the loopholes. They know where the grey areas are in the tax law and how to make those loopholes work in your best interest. They can not only speak the language, but they can make sure you only pay the minimum amount required to the IRS.

4. You’re considering bankruptcy. There seems to be an overriding attitude in this country that filing bankruptcy can solve all of an individual’s financial problems. In reality, bankruptcy laws are very strict and often involve much more trouble than most people realize. A tax attorney can not only help you decided if you should file for bankruptcy but can also make sure you do it by the book.

5. You own your own business. Any small business owner should use the services of a tax attorney. It is quite difficult to keep paperwork in order, which can be a problem if you find yourself subjected to an audit. A tax attorney can help you organize all pertinent information so that it can be easily produced in the event of an audit. Organized paperwork not only makes you look more professional in the eyes of the IRS, but it also shows that you take the process seriously. A tax attorney can also help you determine your options regarding tax returns so that you can save the maximum amount of money and reinvest it in your business. They can also point out which deductions you’re not taking advantage of and can help you get the biggest refund you can.

Many people approach consulting a tax attorney with much trepidation, fearing that the cost will be prohibitive, but the fact is that the services provided by a tax attorney can actually save an amazing amount of money for you or your business in the long run.

By: Seomul Evans

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