Tax Attorney

A Tax Debt Attorney - Would You Even Consider Being Without One With The IRS

2007-11-24T19:53:00.000-08:00

For all of you who are tax defaulters or tax creditors, you may already have a tax debt attorney hired. If not then it's necessary for you to understand who the tax attorney is and how he will be helpful to you. This may help you to avoid circumstances that can go for the worst. Not every tax default situation will land you in court. In a tax debt situation, an attorney can help you if your having problems with your tax default situation and wish to rectify the tax debt. You may end up loosing a good deal however, if you face the IRS without a good tax debt attorney. Obviously, with no attorney on your side to make you aware of your rights and the benefits that you are entitled to, you are definitely on a loosing side.

Tax liabilities are incurred by people due to several reasons and sometimes do not even realize them until they see some trouble heading their way. Situations like losing your job, unemployment, divorce and alimony make people go through financial crises which can create tax debt liabilities. Further more these liabilities keep on accumulating and increasing. But the thing to be feared is not the tax amount, but the penalties that you have to pay with these accumulated taxes which are usually a lot higher than the actual accumulated taxes.

A tax debt attorney will primarily perform the function of trying to get some of your taxes waived off. Of course, you may not get your taxes completely waived off, but you will definitely get a deal that is good enough to set the things right. Even though the IRS people are firm about collecting back taxes, they understand the issues that people face. Heavy penalties are levied on late payment only to discourage people from trying to evade the taxes and to get the tax collections done on time.

With the help of a good tax attorney who will negotiate with the IRS official on your behalf, you may succeed in getting some relief from your tax burden. The job of your tax attorney is to work out a deal that benefits you such that your payment schedule and what you owe are suitable for you.

An ideal attorney will help you do away with your problems in a very convenient manner. He will help you to locate all the possibilities that could work in your favor when facing the IRS official. This can save you from being put behind the bars for tax evasion.

Tax Attorney Explains How To Survive An IRS Audit

2007-11-23T21:29:00.000-08:00

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IRS audits can be stressful, time consuming and, in some cases, expensive. This article provides an overview of how to approach an IRS audit.

The first step is always to gather information. Taxpayers should start by locating their tax returns for the tax year being audited and the tax year prior and subsequent to the tax year being audited. Taxpayers should then look for documentation to support any tax deduction or tax credit that they claimed on these tax returns.

Particular attention should be paid to expenses listed on Schedules E (for investment property) and C (for small businesses) and items listed on Schedule A (assuming that the taxpayer opted not to itemize their deductions). Mileage expenses, charitable gifts, contract labor, cost of goods sold, and other unusually large items will draw the IRS auditor’s scrutiny.

Also, taxpayers should double check the items of income on the tax returns to verify that they did not omit any items from their tax return. Taxpayers often discover that they omitted interest or dividend payments from small savings or brokerage accounts. In many cases taxpayers fail to report these items due to the investment company failing to send out the required tax documents to the taxpayer. Taxpayers should be prepare to explain any unreported income.

Having copies of each of these items to provide to the IRS examiner can prove very helpful in resolving an IRS audit in a timely manner.

Taxpayers can expect that the IRS examiner will want to meet at the taxpayers house and/or business. The idea is that the IRS can ask the taxpayer to go fishing for additional documentation when they are in these locations. That is why it can be helpful for taxpayers to request to meet at the IRS examiners office.

Taxpayers should also be advised that the IRS examiner’s job is to assess the most tax possible. Unfortunately, many taxpayers forget this fact as the IRS audit progresses. The result is typically a notice of proposed adjustment mailed to the taxpayer a month after the IRS audit that is completely out of sync with what the taxpayer expected. To avoid this, taxpayers must always recognize the IRS examiner’s role and the taxpayer must be proactive in asking questions and determining what EXACTLY the IRS examiner needs to allow the taxpayer’s deductions and credits.

Assuming that there are no items of unreported income and the taxpayer is able to substantiate all of their tax deductions and credits, then the IRS audit should be fairly straightforward. If the taxpayer is not able to substantiate deductions or credits or items of unreported income are involved or the IRS audit uncovers these items, taxpayers should immediately consult with an experienced tax attorney. The same goes for tax periods in which the taxpayer did not file tax returns. The relatively modest cost for an experienced tax attorney can significantly reduce the amount of tax that the taxpayer may end up having to pay.

What You Should Look for in a Business Tax Attorney

2007-10-10T08:46:00.000-07:00

No one plans to rack up tens of thousands of dollars of debt with the IRS when they open their business. Most of these problems start small. Little things, like maybe forgetting taxes for one or two payroll periods. Eventually things spiraled out of control. Now you're up to your eyeballs in debt to the IRS with no idea where to turn for help.

For serious tax problems, including large IRS debts, payroll and other employment tax problems, you need a tax attorney. Here are some tips for finding an attorney who can successfully go to bat for you against the IRS.

Why you can't go with a typical lawyer

Tax law is one of the most complicated fields of law. Taking one or two tax law classes in law school doesn't give an attorney the training or experience necessary to represent you effectively against the IRS. It would be like going to an obstetrician for brain surgery. They're both doctors, yes, but with very different specialties.

Good tax lawyers know the IRS's rules, and they can use those against them. They have specialized data bases/libraries they subscribe to and know how to utilize to have access to the very complicated, and constantly changing, laws and rules governing tax laws and procedures. The stakes are too high to gamble on a lawyer without these specialized tools, training and experience in tax law. If things go wrong, the business you've worked so hard to build could be shut down. You personally could even go to jail.

Your CPA can't help you, either

CPAs know the day-to-day accounting stuff needed to run a business and to file its tax returns. But when it comes to actually going head-to-head in controversies with the IRS, you need someone with both real litigation training and experience and a broad knowledge of how to deal with tax problems.

Also, be advised: you have no confidentiality privilege covering potential criminal liability with your CPA. In fact, your accountant is required by law to disclose certain accounting errors, which may land you in even bigger trouble. Consider the ramifications of having your CPA called in as the star witness against you if your case goes to trial.

Look for specialized education

Diplomas don't lie. Look for specific tax experience and training. Look for a lawyer that specializes in tax law, and preferably one who graduated from a highly-rated law school, such as NYU School of Law. Try to find a lawyer with a Master's law degree specializing in tax law (LL.M. in Taxation).

Make sure they are staying current in their field as well. Laws constantly change, and you want to make sure your business doesn't suffer with a tax attorney who's behind the times.

References count

Ask around. If you know a good lawyer or judge you trust, ask if he or she knows someone who specializes in tax cases who he or she feels comfortable recommending to you. Peer-reviewed ratings, like Martindale-Hubbell, can also give you an idea of what other lawyers are saying about the one you're considering hiring. Ask what the Better Business Bureau has to say about the lawyer.

Field experience is absolutely necessary

Any time you have a controversy or a fight, you want a litigator. If you have a dangerous or complicated controversy with the IRS, your tax lawyer should also have extensive litigation experience, though very few do. You need someone who has real training and experience in dealing with conflicts and proceedings with someone who's after you.

A significant reason why the IRS settles is because they have to consider the hazard of litigation. They are going to want to get things settled and avoid a lengthy court battle -- but only if your case poses a risk to them. You need a credible threat of being able to go to court and really stand up to the IRS to get leverage to make them settle.

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Tax Attorney Explains How To Survive An IRS Audit

2007-09-29T17:48:00.000-07:00

IRS audits can be stressful, time consuming and, in some cases, expensive. This article provides an overview of how to approach an IRS audit.

Having copies of each of these items to provide to the IRS examiner can prove very helpful in resolving an IRS audit in a timely manner.

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County tax campaign is legal

2007-09-28T17:50:00.000-07:00

Taxpayers' money is being used to produce campaign materials about the sales tax. Few Florida courts have addressed governments spending taxes for campaigns.

When Sarasota County spends taxpayers' money to produce informational brochures and materials used by politicians to promote ballot measures such a 15-year extension of the local option 1-cent sales surtax, it is legal.

But is it good public policy?

The politically delicate subject of spending tax revenue to inform voters has periodically been addressed by county attorneys who advise commissioners to either avoid conflicts of interest or the perception that they are unethically trying to influence opinions.

"Commissioners can go out as individuals and advocate," Deputy County Attorney Kathleen Schneider said, "but the county cannot use funds to publish materials that encourage residents to vote yes for a referendum item. It (the material) can't say vote yes or no."

Publications produced by the county can inform people about how revenue generated by a measure such as the local option sales surtax has been spent in the past, what it would be spent for in the future, and suggest to voters they will have an opportunity on Nov. 6 to extend the tax.

"The county can do things such as put a sign beside a road project that says the work is being paid for with money raised by the sales tax," Schneider said. "That's informational. Our job is to remind commissioners what the courts say we can and cannot do."

Complicated

At the Pelican Press' request, Florida Press Association attorney Sam Morley reviewed pamphlet material the county has produced and Web site information it has displayed about the sales tax question that will appear on the Nov. 6 ballot.

He cautioned that the regulation of government speech is a "nuanced" and "complicated" area of First Amendment law before acknowledging a local government such as Sarasota County "may promote its policies and positions either through its

own officials, or through its agents."

When it displays sales-tax information in a positive light on its Web site, Morley concluded, "The county's communication of its own position on the penny sales tax, as stated in its own words, is government speech, and this would be generally allowed."

Florida TaxWatch, a not-for-profit government watchdog group in Tallahassee, takes no issue with the legality of local government efforts to influence voters on such issues as the sales tax extension. But it strongly objects to the policy.

"TaxWatch does not feel public dollars should be used to promote tax increases," said Kurt Wenner, the organization's attorney. "There is a line between public information and advocacy, at best, or propaganda, at worst.

Local governments should not cross it while using tax dollars."

Informed choices

While there haven't been many Florida court rulings that address the issue of local governments spending tax revenue to either inform or educate the public about ballot issues, one in particular was cited by former Attorney General Bob Butterworth in a 1998 opinion.

The Florida Supreme Court was asked to consider whether Leon County could use public funds to mount an informational campaign about a sales-tax ballot question. It ruled the campaign was permissible, despite a citizen group's insistence the county should be neutral.

"One duty of a democratic government is to lead people to make informed choices through fair persuasion," the high court ruled. "Local governments are not bound to keep silent in the face of a controversial vote that will have profound consequences for the community."

By Jack Gurney

Pelican Press

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Tax laws used to stop adult-business owners

2007-09-23T17:49:00.000-07:00

For all of Al Capone's sins and transgressions, he did at least one thing of everlasting value to law enforcement: He failed to pay his taxes.

That gave federal authorities the chance to do what their local counterparts could not — keep "Scarface" behind bars — and ever since, creative U.S. attorneys have found income tax laws an invaluable tool when pursuing the lawbreaker apparently above the law.

For much of the past two decades, those targets have included people who distribute sexually explicit material, whose rise to wealth was inevitable when obscenity laws began to fall out of fashion.

Porn may have moved from seedy theaters and plain brown wrappers to a closer-to-mainstream commodity, with revenues ranging between a few billion dollars and $20 billion, depending on who you listen to. But the people behind it still live with a bull's-eye on their back, even though their product is not illegal unless a jury has judged it so.

Local adult bookstore owner Andrew Inglet discovered as much this month when an indictment charging him with tax evasion was unsealed after his arrest. The three-count indictment alleges that Inglet, the 54-year-old president of East Bay Inc., underreported his income as well as the wages of some of his employees.

For example, in 2002 Inglet reported income of $134,112 when it should have been more than $1.25 million, prosecutors allege. In all, East Bay deprived the government of more than $500,000 in taxes, according to the indictment.

Network of businesses

Curiously, the federal complaint left unexplored the relationship of Inglet and East Bay to father-and-son adult bookstore impresarios John K. and John A. Coil, who also were indicted on tax evasion and obscenity charges in 2003. Their network of 27 sexually-oriented businesses in Texas — several were in Houston — and three other southwestern states ultimately was seized by the government and shut down. John K. Coil was sentenced to 63 months in prison on both charges. His son received probation after pleading guilty to making a false statement on a tax return.

John A. Coil's name appears on East Bay's public franchise tax report for 2007, which is dated March 16. On that form he, not Inglet, is listed as the company's president. Other documents show him as one of the directors of the company, which operates eight adult-oriented stores in Houston, Dallas, San Antonio and Austin.

One likely explanation for the connection to Coil is that Inglet was aware of the investigation into his tax filings and was looking for a way to get out of the business. In a written statement explaining her decision to jail Inglet without bail, U.S. Magistrate Judge Frances Stacy said Inglet has long been concerned about information that his ex-wife gave IRS agents just before their divorce, and had either sold or was selling all his property in Texas.

Inglet's attorney, William Grimsinger, declined to comment on the ownership of East Bay or the charges against him. Coil could not be reached.

Even if federal prosecutors had not been combing his tax records and checking his books, the time may have been right for Inglet to move on to a new line of work. Despite porn's ever-rising DVD sales, Internet availability and inclusion in cable and satellite TV packages — or perhaps because of it — the legal climate recently has grown frostier for those who sell it.

In 2005, the Bush administration organized an anti-pornography task force, with then-Attorney General Alberto Gonzales vowing to bring obscenity cases back to the nation's courtrooms to protect citizens from exposure to sexually explicit material. The number of prosecutions has steadily increased.

"I think these investigations are a reflection of an assault on the industry," said Luke Lirot, a Florida attorney who represents numerous businesses and individuals in the adult industry. "I think this is President Bush paying back some of his political capital from the Christian right."

Pairing charges

Dicier by nature, obscenity charges are easier to justify if prosecutors can pair them with other, heftier allegations such as racketeering or tax evasion that add leverage to the case.

The strategy has shown up in a number of recent cases. In 2005, the U.S. attorney's office in Dallas obtained an indictment against Edward Wedelstedt of Denver, whose company, Goalie Entertainment, was a major distributor of adult material in 18 states, including Texas.

In March 2006, he was sentenced to 12 months in prison on tax fraud and obscenity charges, followed by a year of supervised release, and had to forfeit some of his properties.

Tax charges were used to bring down the legendary Reuben Sturman, whose California-based empire earned him an estimated net worth of $100 million — and also the attention of the federal prosecutors, who focused on his financial doings when state and local obscenity charges failed to stick.

Sturman was slapped with a 29-year prison sentence and died in federal custody in 1997 at the age of 72.

"I should have paid my taxes," he told the Los Angeles Times two years before his death. "I paid a million every year. But there was a couple million I didn't tell them about."

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Florida Property Tax Attorney Daniel Weiss Offers Tips and Information to Florida Property Owners About Upcoming Property Tax Appeal Filing Deadlines

2007-09-22T17:47:00.000-07:00

Florida property taxpayers face annual property tax appeal filing deadlines. After a tumultuous legislative special session Florida property taxpayers are turning their attention to appealing their annual property tax evaluations. Confusion reigns because while tax bills may be lower, valuations have risen an average of 15 percent. Tax appeal filing deadlines vary from county to county, but all appeals must be filed within 25 days of mailing of notices of proposed taxes.

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Miami, Florida (PRWEB) August 31, 2007 -- Florida property tax attorney Daniel Weiss offers the following tips and information to residents and business owners about the upcoming deadline for filing property tax appeals in Florida.

25 day filing period -- Weiss cautions taxpayers that all 2007 property tax appeals must be filed with 25 days of the mailing of notices of proposed taxes.

Since this is one of the shortest statutes of limitations imaginable, Florida property taxpayers are advised to exercise their right of appeal swiftly. The 25 days starts to run on the date of mailing of the notice of proposed taxes. No extensions are authorized by statute.

Each of Florida's 67 counties decides when in August to mail taxpayers their notices of proposed property taxes (TRIM -- "Truth In Millage" -- notices). By state law, however, the deadline for filing valuation appeals expires 25 days from the mailing of the TRIM notice.

Filing deadlines may be as early as the first week of September or as late as the last week of September. By state law, each taxpayer's notice of proposed taxes shows the filing deadline at the bottom.

Only valuations -- and not tax bills -- are subject to appeal. Typically, taxpayers look at the "bottom line" and react based on the projected dollar amount of taxes. After a legislative rollback of local government revenues adopted in 2007, many property tax bills in Florida will be lower than 2006. Valuations, however, are an average of 15 percent higher.

This means that even lower-than-usual taxes may be based on higher-than-ever valuations. So remember to determine whether to appeal based on the valuation -- not the dollar amount of taxes to be paid. Be like the commercial taxpayers who are savvy enough to understand that even if their tax bills are lower for 2007, there is still an opportunity to seek to have them reduced even more.

January 1 is the date of assessment in Florida, as it is in many other states. This means that it is the county's responsibility to ascertain the valuation of all properties as of the first of the year. So if you still had Wilma or Katrina hurricane damage unrepaired as of January 1, 2007, and the Property Appraiser (formerly called the tax assessor) did not take it into account, this failure can be the basis of a successful appeal.

Annual appeal as business strategy -- Many commercial property owners make it part of their annual business plan to appeal all property taxes. It's an easy decision, because most property tax consultants offer their services on a contingency basis. Then, if there's no tax reduction, no fee is due.

Many property tax professionals will review assessments at an initial consultation without charge. Take advantage of this opportunity. Interview more than one before you sign a retainer.

Some property owners prefer to retain a property tax consultant who is also an attorney to represent their interests in property tax appeals. This preference assumes that attorneys are better at spotting legal issues and formulating legal arguments. These include the impact of zoning and comprehensive planning regulations on property tax assessments, as well as superior understanding of procedures and exemption and special classification statutes which confer benefits for agricultural use or historic properties.

Other property owners prefer to work with real estate brokers or agents familiar with comparable sales and income and expense ratios in local markets.

If you're not sure whom to retain, do some research online.

The Florida Department of Revenue provides a list of all 67 county Property Appraisers: http://dor.myflorida.com/dor/property/appraisers.html Contact the local County Property Appraiser to ascertain the date of mailing of the notice of proposed taxes or to request a duplicate of any notice not received.

But don't delay. The tax appeal time clock is ticking.

Daniel A. Weiss has over 26 years experience as a Florida property tax attorney. Weiss was named by the 2007 South Florida Legal Guide as one of the top lawyers in the practice areas of both Real Estate - Land Use, Zoning & Environmental and Real Estate - Commercial.

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Arbor home builders sue Portland tax attorney

2007-09-22T01:28:00.000-07:00

Investment loss - The two construction magnates put $28 million into a horse-breeding operation that collapsed

Wednesday, September 19, 2007

JEFF MANNING

The Oregonian Staff

Residential construction magnates Dennis Sackhoff and Wally Remmers have sued prominent Portland tax lawyer Joseph Hanna and his firm Hanna Strader over their money-losing investment in a failed thoroughbred horse-breeding operation.

Sackhoff and Remmers invested $28 million between them in ClassicStar based in part, they claim, on an opinion from Hanna that ClassicStar's aggressive tax strategy was legal and appropriate. But they now accuse Hanna of malpractice, claiming the lawyer failed to disclose that in addition to representing them, he was getting paid handsome commissions for steering clients into the breeding operation.

Hanna received $618,000 in commissions from ClassicStar and a firm working on ClassicStar's behalf in return for the investments from Sackhoff, Remmers and a third plaintiff in the lawsuit, Bryan Nelson, of Bellevue, Wash., the lawsuit claims.

Steve Ungar, a Portland lawyer representing Hanna, dismissed the claims against his client, saying they are "typical of those filed by parties who have independently made imprudent business decisions, yet down the road, attempt to shift the blame to professionals who have served them in good faith."

Ungar denied that Hanna received commissions or any other payments from ClassicStar or anyone else, other than legal fees.

ClassicStar has since collapsed, eliciting racketeering lawsuits from Sackhoff and Remmers and at least six other clients. The Justice Department and Internal Revenue Service have launched a criminal investigation.

The Kentucky-based breeder filed for Chapter 11 bankruptcy on Friday, reporting it owed more than $100 million to at least 300 creditors.

Sackhoff and Remmers own Arbor Custom Homes, the largest residential builder in the Portland area. They were typical ClassicStar investors: wealthy and successful business people.

In promotional literature, ClassicStar aimed its pitch directly at those in the upper-income tax bracket searching for ways to reduce their tax obligation. Calling itself the "ultimate tax solution," ClassicStar offered possible enormous profits in large part because of a tax strategy that generated large tax refunds.

Sackhoff and Remmers, along with Nelson, became aware of ClassicStar in 2004. All three hired Hanna in May and June 2004 to analyze the federal tax implications of the breeders' program.

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Let Your Tax Attorney Answer When The IRS Comes Calling

2007-08-07T06:58:00.000-07:00

The beginning thought of T.S Eliot’s masterwork “The Wasteland” states that “April is the cruelest month,” and while his poem deals with themes far more universal than tax time in the US, millions of American taxpayers can only nod their heads in agreement at its opening words. But those taxpayers for whom April has added insult to injury in the form of an IRS or state tax board dispute, a tax attorney can be a longed-for ally.

Having to come face-to-face with any tax authority, be it the IRS or at the state level, can be very intimidating for most average taxpayers. And taxpayers who try to deal with tax authorities on their won may find themselves completely immersed in legal speak which they do not understand, and agreeing to things contrary to their own best interests.

By hiring a tax attorney, you as a beleaguered taxpayer can have someone speaking the same language as the authorities and interpreting what they are saying in easy-to-comprehend terms. A tax attorney will also be able to help you dial down the stress level a few notches by letting you know when the taxmen are bluffing you.

When To Call A Tax Attorney
If for some reason you find yourself in the position of being in debt to the Internal Revenue Service, and thousands upon thousands of taxpayers are, you should not waste another minute before contacting a tax attorney. A lawyer trained specifically in tax law, a tax attorney can find you the quickest and least expensive way out of your predicament.

Giant business entities have stables of tax attorneys on retainer simply to keep them from running afoul of the IRS Tax Code. A tax attorney can address your tax issues regardless of their nature, from the failure to file, to audits, to property seizures and liens, to wage garnishment.

Is It Really Worth it?
While the cost of hiring a tax attorney may at first seem prohibitive, you will save far mire in the long run than if you let the IT run roughshod over your bank account. The IRS is interested in only one thing: getting what you legitimately owe and whatever penalties they can tack on to it. A tax attorney will negotiate the best possible terms for you and that can mean a significant reduction in penalties.

If you have the IRS coming after you, hiring a tax attorney is the best way of protecting your interests. All the effort you have put into building a life for you and your loved ones can be wiped out with a single IRS decision, and you need someone who talks the IRS’ language to speak for you. Your accountant, if you have one, may be able to recommend a good tax attorney; otherwise, you can contact the American Bar Association. If you are lucky enough to find a tax attorney who is also a CPA, you’ll improve your odds of a fair outcome even more.

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Why Hire a Tax Attorney?

2007-08-06T17:51:00.000-07:00

Why Hire a Tax Attorney?

Competence. Tax lawyers know the law and have the expertise to vigorously defend you from IRS actions.

Privileged Communications. Communications to a lawyer and his staff are confidential and privileged. This can be very important in tax cases. Communications to accountants and enrolled agents are not similarly privileged.

Not Intimidated. The IRS intimidates enrolled agents who are licensed by the IRS to represent taxpayers. Lawyers, on the other hand, are licensed by the State Bar Association, not the IRS.

Preparation. A lawyer has the education, training, and experience to best represent you before the IRS and the courts.

Accountability. Bar Associations regularly penalize and disbar lawyers with ethical violations. We stand behind our advice and service.

Avantri Law's Private Policy Statement:

Avantri Law will not sell or rent to anyone the information you provide us. Avantri Law is a law firm and must protect client confidentiality and the attorney-client privilege.

Click on the IRS Tax Problem for more information.

Audits	Amnesty	Liens
Appeals	Criminal Investigations	Urgent Notices
Levies	Assessments	Form 940
Seizures	Tax Deficiencies	Penalties
Interest	Asset Forfeiture	Wage Garnishment
IRS Investigations	Offer In Compromise	Installment Agreements
Collection Freeze	Individual Taxes	Business Taxes
Employment Taxes	IRS Notices	Unpaid Taxes
Un-filed Returns	Form 941	Delinquency
Delinquent Returns	Innocent Spouse Relief	Taxpayer Assistance
Bankruptcy	Independent Contractor	Bill of Rights

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Los Angeles Tax Attorneys

2007-07-04T08:05:00.000-07:00

Laws governing taxes in Los Angeles are often complicated and could leave you in a tizzy, leave alone understanding them. This is where a Los Angeles Tax attorney comes into picture. Tax laws literally affect millions of people in Los Angeles. Los Angeles Tax laws are specialized laws that apply to areas like income, property, estate and matters of inheritance. A good Los Angeles tax attorney is hired to help individuals or corporations to calculate and then pay taxes.

Any good Los Angeles tax attorney is typically well trained in subjects like statistics, business concepts, mathematics, to mention only a few. Many of them also hold the Master of Law Letters (LLM). The LLM degree speaks volumes about their expertise in the field of tax laws. A good number of tax lawyers have obtained LLM in Los Angeles. Such tax lawyers are considered more knowledgeable, when advising clients on matters related to tax.

One should also take into consideration several factors, before hiring the services of a Los Angeles tax attorney. You should clearly address your needs for one, in the first place. You can go through online forums, which could give you a fair idea on taxes. There are virtually hundreds and thousands of articles available on these online resources, which would answer most of the queries, which you may have had. You can also find out more about them through your friends or colleagues, even your family members. In order to locate for a tax lawyer in your area, you can either browse online or you can easily find one in your yellow pages. It is always advisable though, that you have list of questions ready to be put to your Los Angeles tax attorney, during consultation. Most of the Los Angeles tax attorneys don’t charge for initial consultations. Remember, the more research you put into your work related to tax, the more you stand to save.

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Tax Attorneys

2007-07-03T08:47:00.000-07:00

Tax attorneys are legal professionals who advise people in terms of tax planning and represent clients in cases of tax disputes or problems with the government. A tax attorney’s job involves much more than just representing a party in case of civil or criminal lawsuits related to taxation. It also involves advising people beforehand on the legal intricacies of tax laws, and how to minimize their tax liabilities in a legal manner.

In tax planning, it is important to consult an experienced tax attorney so he can advise the best legal means available to minimize taxes, get exemptions or rebates, and the best arrangement for filing returns. The federal and state tax laws are intricate and sometimes the laws differ from state to state. There are many tax exemptions available for certain groups like senior citizens, who may not be aware of those exemptions. However, trying to minimize or avoid paying taxes using legal loopholes without first consulting an attorney is risky and can land one in trouble with the government and Internal Revenue Service.

Tax attorneys also represent a person or organization under investigation for tax evasion/fraud. This involves negotiating with the IRS on behalf of the client, fighting for the client in case criminal proceedings are initiated as well as working on reduction of penalties if client is found guilty. A skilled tax lawyer can reach an out of court settlement for the tax defaulter and minimize penalties if he or she is convicted.

Consulting a tax attorney is a better option than consulting a tax advisor or accountant because as a lawyer, a tax attorney cannot be forced to appear as a witness against his client. So all communication between the attorney and his client is confidential, which is not the case if a tax advisor is made to testify against a person charged with tax crimes.

Selecting the right attorney, with expertise in the area required is very important. Apart from experience, he or she should have excellent references and be a member of the bar association. A good tax attorney is an asset which can save you from much trouble later.

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Tax Attorney Discusses the Civil Tax Fraud Penalty

2007-05-19T17:06:00.000-07:00

The civil fraud penalty is the IRS's most drastic civil remedy for forcing taxpayers to comply with our tax laws, yet very little is written about this penalty.

The civil fraud penalty is imposed on taxpayers when the IRS believes that the taxpayer filed a false or fraudulent document with the IRS. The civil fraud penalty is equal to 75% of the tax underpayment that is attributable to fraud. A tax underpayment is basically the amount of tax that the taxpayer would have paid absent their attempt to defraud the US Treasury. This usually consists of a taxpayer failing to report certain items of income or claiming a tax deduction and/or credit that they were not entitled to.

The IRS generally only has to prove that the taxpayer unerreported one particular item, and if proven, fraud is presumed for all other items. For example, if a Schedule C small business owner reports $100,000 of taxable business income when the business owner actually had $200,000 of taxable business income, then the IRS only has to prove that $1 of income was not reported. If proven, the fraud penalty will be based on the $100,000 that was not reported - not merely the $1.

Once the fraud penalty is imposed, the penalty and interest on the penalty will be begin to accrue from the date of the underpayment. There is no statute of limitation or time period for the IRS to assert the fraud penalty if the IRS is able to prove that fraud actually occurred.

The IRS is usually able to prove that fraud occurred by relying on circumstantial evidence or "badges of fraud." "Badges of fraud" include a taxpayer's history of failing to file or underreporting income, claiming false deductions or improperly deducting personal expenses, using false documents to support tax positions, failing to keep records or dealing in cash, and failing to cooperate during an IRS audit or examination.

Taxpayers have a number of options for dealing with the civil fraud penalty. The best way to resolve IRS fraud penalty issues is to show that the underlying tax liability or tax understatement was not owed. For example, the fraud penalty can be eliminated or minimized if a taxpayer can show that his or her tax liability was zero or less than that asserted by the IRS, even though the taxpayer had falsely claimed a $100,000 tax deduction. In this example, if the $100,000 tax deduction would have saved the taxpayer $20,000 in taxes, the taxpayer will need to come up with $20,000 of additional legitimate tax savings to offset the $20,000 understatement.

Taxpayers may also be able to defend against civil fraud penalty claims by asserting that they relied in good faith on the advice of tax counsel or they made an honest mistake or error. These defenses will generally negate mental state that is required for the penalty.

In the event that the taxpayer is successful in avoiding the civil fraud penalty, the IRS will likely seek to impose an accuracy related penalty. The accuracy penalty is substantially smaller than the 75% civil fraud penalty.

Taxpayers who think that they may be subject to the civil fraud penalty should immediately hire an experienced tax attorney to discuss their tax matter.

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Finance Tax Attorneys: How Significant are They?

2007-05-14T17:26:00.000-07:00

Being a finance tax attorney requires adequate knowledge about the law on tax especially that he will not only be confined to the task of representing his clients in the court for criminal or civil lawsuits but his task also extends up to providing valuable advices to people. His advices are much needed for the issues regarding tax laws as well as with the ways on how tax liabilities will hence be minimized in such a legal method.

If you are faced with the pressing issues regarding tax planning, it is essential that you discuss with a professional finance tax attorney so that you will be able to reap out the best advices which are nonetheless recognized by the law.

With the aid of the finance tax attorney, you will be made aware of the steps as to how you can minimize your paid taxes, avail of rebates or exemptions, and the best scheme of filing your income tax rebates. Both of the state and the federal tax laws are very much complicated that most of the times these laws vary from one state to another. Tax exemptions are mostly to be availed by the senior citizens.

So if you are not aware of the existing terms concerning these exemptions, you might as well need to refer your issue to a reliable finance tax attorney.

Do not take these matters into your own hands. Making decisions without prior conference with a finance tax attorney may be risky on your part. If you insist on taking matters into your own hands, you may deal with legal troubles in no time at all. You can minimize your taxes but ensure first that the steps that you will take will be in conformity with the legal procedures known to everyone in the government. Take note as always that the Internal Revenue Service is on the lookout for tax evaders and tax violators. One false move and you’re dead meat!

Finance tax attorneys are the persons who take the full responsibility of representing their clients in the court. Their clients may be a single individual or an organization that is held under inquiry for cases of tax fraud or tax evasion.

The steps taken by the finance tax attorneys include putting up a negotiation with the Internal Revenue Service as well as defending their clients during the criminal case proceedings and when found guilty, it is their duty to work on the possible reduction of their clients’ penalties. Most of the proficient finance tax attorneys work out for the most possible court settlement for the tax evader so that the penalties to be suffered when he or she gets convicted will be lesser.

It is a better option to confer with a finance tax attorney rather than with a tax accountant or tax advisor since as a legal guidance, he cannot be dragged by the law to spill out any conversations that transpired between him and his client. Tax advisors are likely forced by the law to testify against an individual or an organization that is facing charges on tax crimes. It is again another very significant matter to find the right finance tax attorney who is not only famous and reputable but also has the necessary skills that will save you from hot water.

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How to Choose a Tax Attorney in Washington

2007-05-14T17:24:00.000-07:00

They say that America is overflowing with lawyers. Everywhere you look, people are suing each other for various types of offenses. It is often the case that people get lawyers to settle the simplest things. There are, however, pretty serious issues that must be handled by competent attorneys.

One such issue is taxes. People need tax attorneys because of the fact that taxes are based on laws. If you are looking for tax attorneys in Washington, however, you have a lot of work ahead of you.

This is because of the fact that there are a lot of Tax attorneys in Washington. This comes as no surprise, since Washington is the seat of the US government. So how does a person go about choosing the right tax attorney in Washington?

Well, you should have a set of standards to base your choices on. You should know if the tax attorney you are getting is any good. Here are some factors that you should consider:

a) Experience� Of course, in order to be truly good, the Washington tax attorney you will be getting should be experienced. This is not only in terms of years practicing tax law, but in terms of cases handled. Getting a good tax attorney in Washington requires that you know the true extent of experience that a lawyer has. How many cases have he or she handled? How did he or she help different clients? These are the questions you should be asking.

b) Creativity� You should choose a Washington tax attorney who is "creative" with tax law. A Washington tax attorney can show creativity in various ways:

1) Interpretation� A good Washington tax attorney should see the law for what it is: ambiguous. He or she should be able to see the various potential interpretations of tax law and use these interpretations to your advantage.

2) Finding opportunities� A good Washington tax attorney can also demonstrate creativity by looking for and finding, various loopholes in tax laws that you can use to solve your problems. There is also something to be said for the creativity of a Washington tax attorney who can find a loophole in the complaint filed by the IRS itself. There are a lot of cases which have been dismissed due to the fact that the IRS has made a mistake in filing and a person can get off just because of a technical detail.

There are various other ways how a good Washington tax attorney can show creativity with the law. By getting a Washington tax attorney who is creative, you have practically unlimited ways of solving your problems.

c) Technical research skills� In finding a good Washington tax attorney, you need to choose one that has great technical research skills. Remember that creativity is only good if you have the proper materials to work with. Having great technical research skills means being able to gather the right type of information and apply them when they are relevant. When a Washington tax attorney has great technical research skills, you can be sure that you will have the resources you need to solve all your problems.

Finding a great tax attorney in Washington can be quite easy if you know what you are looking for. Just remember not to be blinded by advertisements and stick to your standards and you will be just fine.

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New York Tax Attorney: Working out Your Un-filed Income Tax Returns

2007-05-14T17:20:00.000-07:00

So you did not file your income tax returns for at least ten years, and here you come back into the country finding out that the IRS had been contacting you through your old good address but to no avail. Until such time that they find out of your quiet return to the country, they will automatically send for you to pay your dues for those ten years of being unable to file your income tax returns.

So what you need to do is to get your documents ready and be ready as well to hear the shock of your life. The tax you owe them may be really high enough to let your eyes roll. But you抳e got no choice. It is either you pay your dues or you get convicted. Which choice would you then go for?

Having failed to file your personal income tax returns can put you in real hot water with the Internal Revenue Service. If you are placed in this kind of situation, it will be best for you to hire a tax attorney. Living in New York never deprives you of the best legal services.

Being the busiest city, New York has a wide range of tax attorneys who are experts in dealing with these sorts of cases. Once you approach any New York tax attorney, you can feel assured and confident that your case will be suitably handled. Your New York tax attorney will take charge of negotiating with IRS for an appropriate agreement.

The first step which your New York tax attorney will get busy with is to trace back the years of your back taxes. The IRS will send you constant reminders about the deadline of your dues. Without the considerable aid of a New York tax attorney, you may be head over heels confused, harassed, and threatened. Do you think you can handle this thing on your own? If you feel like your head may plop like a balloon, get yourself one fine New York tax attorney now!

If you continue to disregard the fact that you need to file your income tax returns, the IRS will be very religious in sending you the reminders. It will even come up to the point that such reminders will turn unfriendly. Do not hence be surprised to one day face the Notice of Intent to Levy both of your wages and assets. This is a stressful situation. But with a New York tax attorney, you will be provided with many options and you can likely be rescued from severe punishment. A New York tax attorney will have nothing in mind other than the best interests that you can gain in the end.

You may not have bothered thinking about this possibility. But then you know for a fact that you cannot in any way escape such fate. You need not prolong your agony and make matters worsen. This very point, contact a reliable New York tax attorney. He or she will take care of everything. He or she will work things out for you such as reducing the punishment that you will get. You can trust them wholeheartedly with things such as these. Tax problems should be faced because you can never run away from them. New York tax attorneys can lend a helping hand.

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Tax Attorney

2007-05-14T17:16:00.000-07:00

Tax attorneys are legal professionals who advise people in terms of tax planning

Tax attorneys are legal professionals who advise people in terms of tax planning and represent clients in cases of tax disputes or problems with the government. A tax attorney.s job involves much more than just representing a party in case of civil or criminal lawsuits related to taxation. It also involves advising people beforehand on the legal intricacies of tax laws, and how to minimize their tax liabilities in a legal manner.

In tax planning, it is important to consult an experienced tax attorney so he can advise the best legal means available to minimize taxes, get exemptions or rebates, and the best arrangement for filing returns. The federal and state tax laws are intricate and sometimes the laws differ from state to state. There are many tax exemptions available for certain groups like senior citizens, who may not be aware of those exemptions. However, trying to minimize or avoid paying taxes using legal loopholes without first consulting an attorney is risky and can land one in trouble with the government and Internal Revenue Service.

Tax attorneys also represent a person or organization under investigation for tax evasion/fraud. This involves negotiating with the IRS on behalf of the client, fighting for the client in case criminal proceedings are initiated as well as working on reduction of penalties if client is found guilty. A skilled tax lawyer can reach an out of court settlement for the tax defaulter and minimize penalties if he or she is convicted.

Consulting a tax attorney is a better option than consulting a tax advisor or accountant because as a lawyer, a tax attorney cannot be forced to appear as a witness against his client. So all communication between the attorney and his client is confidential, which is not the case if a tax advisor is made to testify against a person charged with tax crimes.

Selecting the right attorney, with expertise in the area required is very important. Apart from experience, he or she should have excellent references and be a member of the bar association. A good tax attorney is an asset which can save you from much trouble later.

Tax Attorneys provides detailed information about tax attorneys, income tax attorneys, international tax attorneys and more. Tax Attorneys is affiliated with Tax Lien Certificates.

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Reasons to Hire a Tax Law Attorney

2007-05-14T17:12:00.000-07:00

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.

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 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.

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Top Ten Tax Attorney Characteristics (What to Look For Before You Hire)

2007-05-02T19:35:00.000-07:00

Finding a good tax attorney who is competent to handle IRS tax matters can be challenging. There are a number attorneys who claim to provide tax services, yet they have no tax experience or education. The following is a top ten list of desirable tax attorney characteristics that will help taxpayers narrow down their list of potential tax attorneys:

1. The tax attorney has actual IRS experience, meaning that the tax attorney has actually worked for the IRS. If you have a non-criminal tax matter (such as a tax debt, a tax lien, or you need to negotiate with the IRS), then you will want an attorney that has worked for the IRS Office of Chief Counsel. This is the IRS’ legal department. Taxpayers would be well advised to ask their would-be tax attorney whether they have worked for the IRS.

2. The tax attorney has a Master’s of Law in Taxation (often referred to as an LLM in taxation). There is no substitute for an LLM. Tax law requires a dedication to continued study. The LLM shows that the attorney has dedicated at least one full year (on a full time basis) to studying tax law. Taxpayers should seriously consider whether they want to hire a tax attorney who does not dedicate the time to learn about tax law for their clients on a full-time basis.

3. The tax attorney has continued to keep up with the field, as evidenced by articles and publications on tax topics. The LLM degree is the starting point. Tax laws change literally every day (literally, with the possible exceptions to federal holidays). A tax attorney who has not kept up with the changes cannot provide quality tax advice to clients. Clients should use the internet to search for evidence that their would-be tax attorney has kept up with current tax law changes. In many cases a Google search and/or viewing the tax attorney’s website should provide a good starting point (especially if the tax attorney maintains a tax law blog).

4. The tax attorney limits his or her practice to tax law matters. Again, tax law is one of the most demanding areas of the law to keep up with. Many tax attorneys also do business, estate planning and bankruptcy work – all of which are related to IRS tax matters. The tax attorney has to understand these areas as well as tax law in order to properly advise the client on IRS tax matters. But an attorney who does everything from divorces, wills, DWIs, personal injury, AND tax law probably has not kept up with tax law changes. Taxpayers should review the would-be tax attorney’s website to verify that the tax attorney focuses only on tax law matters (Taxpayers should also check for separate additional websites maintained by the would-be tax attorney to advertise their non-tax law related matters).

5. The tax attorney (and their law firm) does not have a TV commercial. Tax attorneys who are able to spend the hundreds of thousands of dollars on TV commercials must be earning hundreds of thousands of dollars each year to afford the commercials. This can occur one of two ways: (1) the tax attorney can be a volume shop, meaning they farm out nearly all of the work to other tax attorneys and they merely take a cut or referral “finders” fee or (2) they charge each client hundreds of thousands of dollars. Taxpayers should decide whether they want to hire either of these kinds of tax attorneys.

6. The tax attorney is personable on the phone or in person. The IRS holds a lot of power. Tax attorneys who are not able to work well with people, will not be able to cope effectively with difficult IRS employees. The result can be the IRS employee exercising their discretion in a way that is not favorable to the taxpayer. Taxpayers should feel comfortable when talking with their would-be tax attorney.

7. The tax attorney is conversant in tax law matters. Tax law has a lot of jargon. Taxpayers should do a little internet research and find a few tax law terms to ask the would-be tax attorney about.

For example, taxpayers might ask: (1) what halts the IRS collection statute (the answer is filing an offer in compromise, installment agreement, taxpayer assistance order, bankruptcy, or leaving the country for a certain period of time)?, (2) what is the difference between an IRS payment and a deposit? (the answer is that a payment belongs to the IRS immediately; whereas, the deposit belongs to the taxpayer and must be returned upon request from the taxpayer), (3) what federal courts are available to handle tax matters (the answer is the federal district, circuit, and supreme courts; the federal court of claims; the US tax court; and the US bankruptcy courts).

If the tax lawyer cannot FULLY answer these questions (without saying “I will have to look that up for you”), then there is a good chance that the would-be tax attorney is not really a tax attorney.

8. The tax attorney has direct experience handling the taxpayer’s particular matter. There are a lot of procedural rules that must be handled properly in tax matters. Direct experience in applying these rules can help produce favorable results quicker for the taxpayer. Taxpayers should ask the would-be tax attorney directly if they have handled the exact same matter before. If they have, then the taxpayer should ask when was the last time (approximately) and how many of the exact same types of cases the tax attorney has handled. Taxpayers would be well advised to not give the tax attorney any wiggle room on this topic. If necessary, halt the conversation and discuss this topic in detail.

9. The tax attorney encourages the taxpayer to get a second and third opinion before hiring a tax attorney. Taxpayers may feel pressure to hire someone immediately after getting a scary notice from the IRS. This is probably a good idea; however, taxpayers should call two or three tax attorneys before selecting the one they will hire. Most tax attorneys offer free initial (and confidential) consultations. When taxpayers make these calls, they should note how long it takes the tax attorney to get back to them. If the tax attorney takes a long time to return the taxpayers phone call, then the taxpayer should expect the same thing after they hire the tax attorney.

10. The tax attorney does not have any complaints against them. Taxpayers can Google the tax attorney’s name along with the word “complaint,” “ripp off,” or other similar (negative) terms and they can check with the better business bureau and the state bar association.

Denver Colorado Tax Attorney Kreig Mitchell helps taxpayers nationwide with IRS tax controversies and helps structure taxable transactions. You can find out more about Mr. Mitchell at http://www.irstaxtrouble.com

Tax Attorney Discusses the Civil Tax Fraud Penalty

2007-05-02T19:34:00.000-07:00

The civil fraud penalty is the IRS's most drastic civil remedy for forcing taxpayers to comply with our tax laws, yet very little is written about this penalty.

The civil fraud penalty is imposed on taxpayers when the IRS believes that the taxpayer filed a false or fraudulent document with the IRS. The civil fraud penalty is equal to 75% of the tax underpayment that is attributable to fraud. A tax underpayment is basically the amount of tax that the taxpayer would have paid absent their attempt to defraud the US Treasury. This usually consists of a taxpayer failing to report certain items of income or claiming a tax deduction and/or credit that they were not entitled to.

The IRS generally only has to prove that the taxpayer unerreported one particular item, and if proven, fraud is presumed for all other items. For example, if a Schedule C small business owner reports $100,000 of taxable business income when the business owner actually had $200,000 of taxable business income, then the IRS only has to prove that $1 of income was not reported. If proven, the fraud penalty will be based on the $100,000 that was not reported - not merely the $1.

Once the fraud penalty is imposed, the penalty and interest on the penalty will be begin to accrue from the date of the underpayment. There is no statute of limitation or time period for the IRS to assert the fraud penalty if the IRS is able to prove that fraud actually occurred.

The IRS is usually able to prove that fraud occurred by relying on circumstantial evidence or "badges of fraud." "Badges of fraud" include a taxpayer's history of failing to file or underreporting income, claiming false deductions or improperly deducting personal expenses, using false documents to support tax positions, failing to keep records or dealing in cash, and failing to cooperate during an IRS audit or examination.

Taxpayers have a number of options for dealing with the civil fraud penalty. The best way to resolve IRS fraud penalty issues is to show that the underlying tax liability or tax understatement was not owed. For example, the fraud penalty can be eliminated or minimized if a taxpayer can show that his or her tax liability was zero or less than that asserted by the IRS, even though the taxpayer had falsely claimed a $100,000 tax deduction. In this example, if the $100,000 tax deduction would have saved the taxpayer $20,000 in taxes, the taxpayer will need to come up with $20,000 of additional legitimate tax savings to offset the $20,000 understatement.

Taxpayers may also be able to defend against civil fraud penalty claims by asserting that they relied in good faith on the advice of tax counsel or they made an honest mistake or error. These defenses will generally negate mental state that is required for the penalty.

In the event that the taxpayer is successful in avoiding the civil fraud penalty, the IRS will likely seek to impose an accuracy related penalty. The accuracy penalty is substantially smaller than the 75% civil fraud penalty.

Taxpayers who think that they may be subject to the civil fraud penalty should immediately hire an experienced tax attorney to discuss their tax matter.

Tax Attorney Explains How To Survive An IRS Audit

2007-05-02T19:31:00.000-07:00

IRS audits can be stressful, time consuming and, in some cases, expensive. This article provides an overview of how to approach an IRS audit.

The first step is always to gather information. Taxpayers should start by locating their tax returns for the tax year being audited and the tax year prior and subsequent to the tax year being audited. Taxpayers should then look for documentation to support any tax deduction or tax credit that they claimed on these tax returns.

Particular attention should be paid to expenses listed on Schedules E (for investment property) and C (for small businesses) and items listed on Schedule A (assuming that the taxpayer opted not to itemize their deductions). Mileage expenses, charitable gifts, contract labor, cost of goods sold, and other unusually large items will draw the IRS auditor’s scrutiny.

Also, taxpayers should double check the items of income on the tax returns to verify that they did not omit any items from their tax return. Taxpayers often discover that they omitted interest or dividend payments from small savings or brokerage accounts. In many cases taxpayers fail to report these items due to the investment company failing to send out the required tax documents to the taxpayer. Taxpayers should be prepare to explain any unreported income.

Having copies of each of these items to provide to the IRS examiner can prove very helpful in resolving an IRS audit in a timely manner.

Taxpayers can expect that the IRS examiner will want to meet at the taxpayers house and/or business. The idea is that the IRS can ask the taxpayer to go fishing for additional documentation when they are in these locations. That is why it can be helpful for taxpayers to request to meet at the IRS examiners office.

Taxpayers should also be advised that the IRS examiner’s job is to assess the most tax possible. Unfortunately, many taxpayers forget this fact as the IRS audit progresses. The result is typically a notice of proposed adjustment mailed to the taxpayer a month after the IRS audit that is completely out of sync with what the taxpayer expected. To avoid this, taxpayers must always recognize the IRS examiner’s role and the taxpayer must be proactive in asking questions and determining what EXACTLY the IRS examiner needs to allow the taxpayer’s deductions and credits.

Assuming that there are no items of unreported income and the taxpayer is able to substantiate all of their tax deductions and credits, then the IRS audit should be fairly straightforward. If the taxpayer is not able to substantiate deductions or credits or items of unreported income are involved or the IRS audit uncovers these items, taxpayers should immediately consult with an experienced tax attorney. The same goes for tax periods in which the taxpayer did not file tax returns. The relatively modest cost for an experienced tax attorney can significantly reduce the amount of tax that the taxpayer may end up having to pay.

What is a Tax Attorney?

2007-04-19T05:30:00.000-07:00

What is a Tax Attorney

When a taxpayer has problems with the Internal Revenue Service, or the state department of revenue, he may be able to solve it himself। However, with the intricacies of U.S. tax law being what they are, the taxpayer may find himself better served in hiring a tax attorney.

A tax attorney specializes in working with taxpayers to solve their problems with the IRS or state revenue department. In fact, they generally focus only on tax issues and relief. A tax attorney can help a taxpayer in trouble make it through an audit, have fines reduced, liens removed, and can navigate through the minefield of small business and self-employment tax issues।

Many small business owners consider their tax attorney to be as vital as their accountant. This is because a good tax attorney can help head off tax problems before they even begin. He or she can see potential trouble spots for a business and can advise the owner how to avoid them.
U।S। tax law is not only labyrinthine in structure, it also changes nearly every year. Thus, a good tax attorney will keep up with the latest changes and can advise clients accordingly. A tax attorney may also be helpful when setting up trust funds, stock portfolios and the like, so a taxpayer doesn't run into unexpected surprises on April 15.

A person looking for a tax attorney shouldn't call the first one listed in the phone book. He should look around, ask friends, or even his personal attorney (if he has one) to recommend a good tax specialist. As a prospective client, the taxpayer should look for a tax attorney with extensive experience in dealing with the IRS, in debt management cases, and in working with real live taxpayers। He should also ask the attorney for references. The taxpayer should also make certain his tax attorney is a member of the American Bar Association and the state bar association. A client should also make sure he knows what his attorney's rates are, and make arrangements for payment early on in the consultation process.

If a taxpayer finds himself in over his head where the IRS is concerned, he should certainly consult a tax attorney। Tax fines tend to snowball, and it is always in the taxpayer's best interests to get problems solved while they are still relatively small ones। Waiting until the last minute to see a tax attorney could be extremely costly, and might result in jail time for the taxpayer, as well as higher legal fees।

Money invested in the services of a tax attorney can be considered a wise investment for a taxpayer.