Whether you have received notification that you are being audited, liened, or levied against the attorneys at Black & Black can assist you.
When Should I Hire a Tax Attorney?
Upon receiving a notice of audit, lien, or levy, it’s important to get the assistance that you need. Due process rights need to be asserted, due dates need to be met, and tax returns need to be amended prior to the statute of limitations. Failure to do so can mean serious ramifications for you and your case including damage to your credit, seizure of your property, and loss of the ability to negotiate.
However, there are things that can be done if you take action. You may be able to reduce your taxes due by amending your returns. You may be able to receive a payment plan to make it easier to pay your taxes or receive an offer in compromise, reducing the taxes that you will have to pay. Contact us now to learn more.
Should I Speak to the IRS or State Taxing Authority?
The IRS and State Taxing Authorities are not on your side. Their job is to collect taxes and depending on the agent, they may be more or less accommodating. Without knowing it, you may give information to agents that can harm your case. If you have a tax problem there are three things you should know before speaking to anyone at the IRS.
First, never voluntarily tell an IRS employee anything, unless they specifically ask for the information. This tip is extremely important for you to understand. Only provide the IRS the information they ask for, and nothing more. And, be careful. The IRS counts on taxpayers giving up too much information. So, don’t become friendly with an IRS employee or offer more information then is necessary. And remember, not everything is necessary.
You should also know that you have a right to say nothing to the IRS. You can have an attorney talk to them instead. So, don’t be afraid to stop talking and stop providing information to the IRS, at any time. If you are concerned or scared, just let them know you want to hire an attorney. Politely refuse to answer any more questions or provide any more information until after you have met with a legal professional.
Second, never tell the IRS something you know is not true. Lying to an employee of the IRS is against the law. If the IRS catches you in a lie you may be charged with perjury. And, if you think the IRS won’t find out. Think again. You are taking a chance with your freedom.
And third, you should never answer any question from an IRS employee unless you understand it completely. If you are not absolutely sure about how to answer their questions you should let them know that you don’t know, or you can’t recall, or you’re not sure. This is important, because down the road the IRS will not be willing to negotiate or discuss forgiving any taxes, penalties or interest that you owe if they believe that you have not been completely up front with them.
An income tax audit is the examination of a business or individual tax return by the Internal Revenue Service (IRS) or state tax authority. The purpose of a tax audit or a return examination is to determine whether reports filed with the taxing authorities are correct. The tax agencies identify and resolve taxpayer errors.
What we have found is that sometimes an audit can result in a refund, if done correctly. Other times, it is important to determine any issues that were filed on your tax return to determine any issues of negligence or fraud.
It’s important that once you find out that you are undergoing an audit, you collect all documentation regarding your tax return as possible.