Controversy with the IRS is something to be avoided whenever possible. When the IRS puts a taxpayer in their sights, the results are usually predictable. The government agency has a reputation for being highly aggressive and unforgiving, and this reputation is well earned. IRS revenue agents have a wide range of powers at their disposal. These agents can start piling up penalties and interest, garnish earnings and paychecks, seize property and freeze accounts, and even take your home or start criminal prosecution against the taxpayer sometimes. The IRS will use every resource and weapon that they have available, until they recover the tax debt. Even though consulting our experienced Fort Worth tax attorneys is crucial for legal guidance, we discuss some facts to avoid IRS trouble, things that will get you into trouble, and reasons for optimism for any IRS tax controversy.
Five Facts to Help You Avoid IRS Trouble
As a law firm with experienced IRS attorneys in Fort Worth, Texas, we see the devastation that the federal tax agency can cause on a regular basis if the taxpayer does not take quick action to prevent it. If you are in a tax dispute with the IRS, then you should consult us as soon as possible. The best way to avoid being intimidated and bullied by the IRS is to avoid a tax dispute entirely with guidance from an IRS tax lawyer in Fort Worth, and there are five facts that can help you do this.
1) The Complicated Tax Code
The IRS understands the tax code, but they are betting on the fact that most taxpayers do not understand this code, and they will take advantage of the lack of knowledge that a taxpayer has. If you do not have a tax attorney on your side, then you are at a disadvantage right from the start. Every year, the United States tax code gets longer and more complicated, and taxpayers cannot keep up unless they are continuously educating themselves on these changes. An experienced IRS tax attorney in Fort Worth, Texas, will be aware of the changes and stay on top of the tax code each year.
2) Computerized systems at the IRS identify red flags
These red flags are indications that the taxpayer has made a mistake or that the individual is trying to illegally lower the tax debt that is owed. The IRS does not have enough resources or agents to look over every single tax return that is filed each year. Learning what causes the system to send up a red flag can help taxpayers avoid an audit.
3) The reality of tax extensions
Tax extensions allow a taxpayer to file a tax return after the deadline, but this will not allow the taxpayer to pay any taxes owed after these taxes are due. For most taxpayers, this does not make sense, but it is the reality of the IRS. If you can not prepare your tax return fully before the filing deadline then, an extension will provide more time for you to file, but you cannot pay any taxes owed late, or you will be assessed late payment penalties and interest. The penalties and interest can add up very quickly.
4) Ignoring the IRS will just make your situation even worse
This may be a common reaction for those who receive notice of a tax dispute with the IRS, but it is the worst mistake that you could make. There is a reason why the IRS is seen as persistent, the agency will not stop or give up. The right move is to try to resolve the dispute, and this will go better if you have an experienced IRS attorney by your side.
5) The truth about Offer in Compromise
The IRS will often settle a tax debt for less than the full amount owed, but only for those who know how to ask for this. The IRS intentionally makes this process difficult so that all taxpayers do not take advantage of these programs, but with the right legal representation by a reputable Fort Worth IRS lawyer, you can resolve your IRS tax debt for less.
Avoid the misery of dealing with the IRS. Knowing these five truths can help you avoid a tax dispute with the IRS, and if one starts then, you should consult a qualified attorney right away.
Things that Will Increase Your Chance of Being Audited
In this section, we will examine four of the most common red flags that get the attention of the IRS, and these will increase your odds of being audited by the agency. Avoiding these red flags and common mistakes can keep you away from the watchful eyes of the IRS and prevent you from having your life devastated by a tax dispute.
1) Simple mistakes
Simple mistakes in math are a good way to cause your tax return to be flagged. When you are adding, subtracting, and multiplying, always double-check the entries to make sure that you avoid simple math mistakes. These small errors could cause you to be audited and start a nightmare scenario. Check your work very carefully, or hire a professional tax preparer or accountant to prepare your tax return for you.
2) Claiming excessive deductions
Always claim any legitimate business deductions that you qualify for. If the numbers seem excessive for the industry that you are in, then you can expect the tax return to be flagged by the IRS computer system. Always keep documentation for excessive business deductions, just in case your return does get audited. The documentation will be very helpful during any audit or tax dispute. Even if you claim legitimate deductions, if these are considered excessive for the industry that you work in, then you should realize that you will have a higher chance of the return being audited.
3) Failing to report all the income that you have made
This is especially true if the income will be reported to the IRS by someone else. It may seem tempting to conceal certain income, especially if you think that the IRS will not find out. This is a big mistake, though. The IRS has ways of cross-checking and many different methods that can be used to uncover income that is not reported on your tax forms. If you fail to report income that you have earned during the year then, you can expect to be audited, and failing to report income to the IRS can carry a criminal charge as well as financial penalties.
4) Claiming a dependent when this person is also claimed by someone else.
Since all the tax returns filed are entered into the IRS computer, the dependent being claimed on two different taxes will raise a red flag and start a tax dispute or audit. Once this happens, every taxpayer who claimed the dependent will be looked at more closely. If you plan on claiming a dependent that you are entitled to, make sure this dependent will not be claimed by anyone else.
Keeping these helpful audit tips in mind when you prepare your tax return can help you avoid any red flags. If you do receive notice of a tax dispute with the IRS, do not panic, contact our experienced tax attorneys in Fort Worth, Texas, as soon as possible.
Three Reasons for Optimism
No one volunteers to be part of a tax controversy with the IRS. There is reason for optimism if you find that the IRS has a tax dispute with you, though, and there are options available for taxpayers who are informed and who know their rights. Remember that you must take action, though; this problem will not just disappear or go away without any effort on your part. You should contact our qualified IRS tax attorneys in Fort Worth, Texas, as soon as you realize there is a tax dispute. The following are three reasons for optimism when dealing with the IRS over a tax dispute:
1) An experienced IRS attorney will help you deal with this agency
Our IRS tax attorneys in Fort Worth, Texas, help taxpayers deal with the IRS so that their lives are less stressful. As soon as the IRS determines that there is a tax dispute, the harassment and stress starts. You will start to receive threatening letters, phone calls, and even visits from IRS agents at your home and place of employment. Who wouldn’t feel intimidated in this situation? When you have our experienced IRS tax lawyers in Fort Worth, Texas, on your side, then you can negotiate with the IRS with legal knowledge. Your attorney can negotiate so that the agency stops contacting you, giving you some relief from the stress.
2) A qualified attorney can make the IRS follow all the rules and regulations
This can make the agency back off and give you some breathing room. A common tactic used by IRS agents is to try and pressure the taxpayer into coughing up what the agency says is owed, even if this means stepping over the line and breaking the rules in the process. With our tax attorney, you can force the IRS to play by the rules and put an end to the pressure. Make the agency stay within their legal authority and call the IRS on it when the rules and regulations are not followed closely by consulting our tax attorneys in Fort Worth, Texas, who understand the tax code and the laws.
3) Settle a tax debt for less than the full amount that the IRS claims you owe
There are programs available, but the IRS does not widely publicize these options to taxpayers, so most people do not even realize that paying less than the full amount may be possible. The agency does not advertise these programs because the hope is that bullying and intimidation will get the desired results. When you have the legal advice of our experienced IRS attorney, this is a possibility, though. After assessing your situation, our IRS tax attorneys will check whether this option is suitable for you. They may be able to negotiate this option for you, reduce your tax debt, and show you how to avoid future tax issues in the first place.
Seek Guidance on IRS Tax Controversies
For taxpayers in Fort Worth experiencing any kind of IRS tax controversy, consulting an IRS attorney in Texas is crucial. Consult a skilled IRS tax attorney at the Law Offices of Nick Nemeth for help with IRS tax problems such as unfiled tax returns. Our IRS lawyers provide resolutions tailored to your specific needs and financial situation. To schedule an appointment, call us at (817) 623-5399. You can also fill out our contact form, and we will get back to you shortly.
