Should I Marry My Tax Attorney?

Tax Relief:

If I Marry My Tax Attorney, Will IRS Suspect Anything?

Chances are that if he’s currently representing you, and doing a good job of it, the IRS won’t ask, if you don’t tell!  Oh, that’s right, that’s not how the IRS deals with things is it?  Wrong Government agency!

Well, we all have to realize though that even tax attorneys are people too, and so even tax attorneys are liable to fall in love with their clients and at times vice versa, though it’s difficult to imagine, isn’t it?  Perhaps you should have considered marrying him before you got him to represent you with the IRS? Funny, how we never think about these things until it’s too late?

I guess, the next question that should be asked is did he give you a whopper of a ring? I mean, he is an attorney, right? Maybe too, he’s come up with a way to declare a huge diamond as a business expense, have you thought of that? You just never know when you are dealing with a tax attorney.

I am sure that you never intended to fall in love with your tax attorney, or else the IRS may suspect you of tax evasion if they can prove you did! I mean if that would work, lots of people would be proposing to their tax attorney, fer sure!  Figures, huh, that the IRS would do that? Now, you may want to ask your fiancée about all this, perhaps he has some thoughts about it, again he is an attorney, and they are really good at answering questions, though not as good as asking them, I always thought.

You always have to be careful about marrying attorneys too, you know?  I mean if you tell him you love him, chances are he’ll begin to cross-examine you. Of course that might present an interesting challenge to your relationship? 

Seriously, yes, there may be a problem with representing you, as there will probably be a conflict of interest arising.

Tax Debt Relief | Don’t Live In Fear of a Tax Audit

All taxpayers have the same fear- tax audit.  However, it is far more realistic for all of us to assume we will be audited at some stage in our lives.  No matter how careful we are there is always the chance our name will come up.  The good news is that chance is a small one.  However, rather than always worrying about an audit, it is far more productive to be as organized as you can every tax year.  

If the IRS informs you they wish to ask questions, you can take action so panic is an unnecessary reaction.  It is always helpful to have a tax professional to guide and advise you through an IRS audit experience.  Professionals who have the credentials to argue your case are Enrolled Agents, tax attorneys and CPAs.  These professionals have the background and knowledge to represent you.

It is very important that you work with your tax professional.  This means being completely transparent by handing over all documents and records.  It does help if you already maintain a system of tax related records and files.  Having actual records is the best way to prove a point to the IRS.  If you can’t show them proof then you are regarded as being in the wrong.

Just because you have a tax professional to guide you doesn’t mean you are completely out of the IRS audit loop.  Be sensible and be prepared.  It will help you to know what is expected of you and from you.  It can only help to read through a general guide on audits.

One of your greatest assets during an IRS audit is the appropriate attitude.  Always maintain a professional yet polite manner.  Always be accommodating and helpful by answering all questions as best you can.  However, it is advisable not to give more information than is requested.  Allow your tax professional to take charge and follow his or her lead.    

Tax Relief: Hire A Tax Professional

Tax Professionals

Many ads claim they can assist you to pay an IRS debt for less.  They profess knowledge to reduce your awful tax bill.  Many call this ‘pennies on the dollar’.

They may have helped a few taxpayers pay less, but it’s not easy.  It is probable that even more taxpayers cannot reduce tax bills even with their assistance.

Such companies hand in an OIC (Offer in Compromise) for the client.  In certain situations it’s an alternative where the IRS accedes to an amount lower than the taxpayer’s complete bill.  The IRS only does this when it’s more gainful to obtain money fast instead of spending years and money getting the taxpayer to settle in full.

The ads promise it’s an easy route.  However, realistically they can’t decide on an amount and the IRS approves it.  You must complete an OIC (form 656-A).  In addition, you must attach a completed CI (Collect Information).  CI (form 433-A) gives your financial data.  The CI data must verify inability to make full payment and your proposal must be reasonable.  A $150 fee must go with form 656-A (OIC).  Only proof of little or no finances will allow a reduced fee.  An additional 20 percent is required if you make a complete OIC amount.  For an installment OIC arrangement a first payment is required.

So, the reality is the IRS doesn’t make it easy to reduce your tax bill.  ‘Offer in Compromise mills’ or ‘pennies on the dollar companies’ aren’t your best solution.  Tax experts and the IRS share this view.  You must pay such companies whether they fulfill their promise or not.  There is a belief the IRS is going to penalize such companies for misleading taxpayers.

A qualified tax professional has the expertise to follow IRS regulations and processes on your behalf.  He or she will give you an honest estimation of your tax situation.  This is preferable to wasting time and cash on a company that doesn’t fulfill its promise to reduce your tax bill.                

Tax Relief: Working With Your Local Tax Office

Requesting Your File to Be Sent to a Local Tax Office

Reasons to deal with a local tax officer instead of an ACS collector:

• Unable to reach an agreement with the collector
• Incorrect bill
• If collector knows your bank, employer, residence he can levy bank accounts or wages; assigned tax officers are more cautious.
• Tax officers may offer longer payment plans and more options if you give more financial details

You must have exceptional reasons to get transferred from the Audit Collection Service to a local tax office such as, if you oppose the tax amount and want a full explanation from a tax officer. In such an instance, ACS collectors must transfer your file to a local tax office in order to determine accuracy.

As long as your reason is not completely untrue you may keep asking for a transfer even if you're turned down. The more you owe, the better your chances are of transferring from the ACS to a local tax office. Put your reasons for objecting in writing and request a meeting with a local tax officer.

Tax Relief: State Revenue Departments Don't Respect Boundaries

 

You don’t have to be rich and famous to pay taxes across borders.  All are equal in the eyes of the IRS.  This has always been the case.  However, it is only of late that States have made a concerted effort to include John and Jane Doe; not just the rich and famous.  This trend has become noticeable to tax lawyers and accountants.  They say it’s because States need revenue.  It has been particularly evident in Connecticut and New York.  However, a commissioner for the Connecticut Department of Revenue, Richard D. Nicholson says States are not being driven by need, but by improved paperless technology.

 

A number of professionals noted even with new technology the process of finding ordinary citizens who worked across borders is going to take a great deal of time.  It is also going to be confusing for employers and employees as this tax regulation differs from State to State.  Most citizens don’t know the regulation exists.  Larger employees quietly acknowledged they never took steps to ensure employees paid across border taxes.  One way for employers to work with State Revenue Departments is to withhold employees’ additional taxes on payday.  This means the corporate payroll ensures across border taxes get paid and State Auditors won’t have to seek out those individuals.

 

While most employers and employees are still ignorant of cross border tax regulations the most insistent States are going to gain the most.  The men and women in the street should know that State Tax Departments are using recently digitalized computer systems containing information such as tenders for government building projects, traffic fines and commercial license plates.  This information is used to find individuals.                  

 

All it takes is a day across a border for many States to demand a filing.  For many such as consultants or salesmen it is going to be a major admin process. The bottom line is if you spend time across any border regarding work or business you pay tax to that State.

What You Should Know About Wage Garnishment Release

Many people will find themselves in a position at some time in their lives when they owe the IRS back taxes.  It's easy to ignore this and hope it will simply go away but it won't.  If you haven't made any kind of agreements with the IRS, chances are you'll end up with a wage garnishment.  A wage garnishment is when they take a percentage (25% usually) before you get your paycheck.  The first time this happens, you'll be very unhappy, especially if all of your utility bills are due.  A wage garnishment release can help you remain in a stable financial position.

 

To get a wage garnishment release, you'll have to provide a good reason for it to the IRS.  A good example is if you made $3000 per month before the garnishment, afterwards you only made $2250, and you have monthly bills totaling $2500.  Obviously, the IRS will realize this isn't going to work and may lead to you having to sell your property.  They don't want that to happen and will usually authorize the wage garnishment release if you comply with a payment plan.

 

Before you start this process you will want to get all needed documents in order and these are: Paycheck stubs, bank statements, bills, property appraisals, and proof of other types of income such as child support, worker's compensation, and other income types.  The more you provide, the better your chances.

 

Using a service or tax attorney is the best way to get a wage garnishment release.  They will not charge you an arm and a leg because they are trying to get you tax relief and understand the burden you already have financially.  The Internet is a great resource to find a service that will do this for competitive prices.

Tax Relief: Can A Tax Attorney Save Me Money?

The basic answer to this question is “Yes”.  If you even slightly think you may need a tax attorney, it's definitely a good idea to begin doing some research and finding a service that can provide you with one that is very knowledgeable and can answer all your questions right away as well as give you some details about similar cases.  Usually the tax attorney will give you an estimate of what you will be able to save if you use their service.

A tax attorney probably won't be needed if you accidentally messed up some tax forms and are more than happy to fix it.  They are best suited for people with penalty fees and interest that is accumulating so fast, you simply can't pay it and it begins to affect your life in a negative way.  It's very difficult for your average person to talk to an IRS representative in a constructive way that both parties can agree on.  A tax attorney provides tax relief for a living and their main goal is to get you great results and get them quickly.

If you are deeply in debt to the IRS, a good tax attorney can sometimes help get your debt settled for pennies on the dollar so you could save thousands or even tens of thousands of dollars in some cases. If your wages are being unfairly garnished, they can also help you get that garnishment reduced to a much more manageable rate.

Most of the time, you will be able to get a free consultation that is free of charge or very cheap so you should take advantage of that and see if this course of action is right for you.  A little bit of your time could make a world of difference in your finances.

Tax Relief: What Can A Tax Attorey Do For You?

A tax attorney is a type of lawyer who specializes in the ever changing tax law area.  These laws change every year and it can be difficult to keep up with those changes on your own.  Even some common tax preparation companies may not be able to help you if you have some history with the IRS or have some other common tax issues. 

A tax attorney is your best bet if you: Have just opened a business or are about to, have to file an estate tax return, have an international business, are under investigation with the IRS, have committed tax fraud, and much more.  People who have worked in the same career for a very long time will rarely need this kind of attention but it can become very complicated if you are planning on starting a small business, own a lot of property, or already owe the IRS.

You should be able to tell when you need a tax attorney.  You will have some problems or other issues that are directly related to taxes and the IRS and you will probably have no other choice.  Many people will go to a CPA (certified public accountant) first and be told to see an attorney anyway.  A lot of attorneys that specialize in tax law are actually CPA's themselves which saves both time and money.

When selecting your tax attorney, you will want to gauge their experience level against the problem or issue you currently have.  A Juris Doctor level will be able to handle most cases fairly well but if you have something very complex, you will want to find someone with a Master of Laws degree in the taxation area.  To find someone to suit your needs, the Internet is usually the fastest and easiest way, especially if you live in a smaller town or rural area.

Tax Relief: What can you do with a Tax Attorney?

 

Dealing with the IRS can be a very stressful and anxious time, especially if you owe money or haven't filed your tax returns for a few years.  The IRS has many methods and tactics that they may use to try to get you to file your income tax returns and to pay your taxes.  These can include letters and phone calls, penalties and interest, wage garnishment and bank account levies, property seizures, as well as the possibility of criminal proceedings.  If you are facing any of these situations, you may need a tax attorney.

One of the first things that you will need to do when you hire a tax attorney is to file a power of attorney with the IRS.  This gives your tax lawyer the ability to negotiate with the IRS on your behalf.  You will need to file your outstanding tax returns before anything else can be done, and your tax attorney will be able to assist you with this.  Once you have filed your tax returns, negotiations can then begin and a skilled tax attorney will be able to act on your behalf to negotiate the removal of penalties and taxes, along with stopping wage garnishment, bank levies, and property seizures, as well as helping you with any other proceedings.  If you are paying exorbitant monthly payments to the IRS, a tax attorney can also negotiate them to lower sums.

One of the important things that a tax attorney can assist you with is the filing of an Offer in Compromise.  This is a document that allows you to pay off a portion of all your outstanding tax debts if paying them would seriously compromise your financial situation.  Circumstances that would allow you to take advantage of this option would be things like serious illness, the requirement to support dependants, or other extenuating circumstances.  A tax attorney will be able to assist you in filing all of these papers, as well as conveying explanations of your situation, and the result could be a considerable reduction in the amount that you need to pay.

Tax Relief: When a Tax Attorney is Your Best Friend

 

If you find yourself owing back taxes that you are unable to pay, there may be some relief available to you in the form of an Offer in Compromise.  An Offer in Compromise is an agreement between you and the IRS that dissolves your debt, and you could end up paying much less than the full amount you owe.  You have to fill out an application for an Offer in Compromise; the application requires a $150 fee, which you may also have waived by filling out another special form.  A tax attorney can help you fill out these forms. They are very knowledgeable about this process, which can be quite complicated.

While hiring a tax lawyer is a personal decision, it may also be a very good decision if you owe a lot of money.  You will, however, want to be wary of any tax attorney who claims that you will be able to settle for "pennies on the dollar", as this is an overstatement of the situation. You should also be on the watch for any tax attorney who charges exorbitant fees.

An Offer in Compromise is only an option if you have already tried other payment options, such as monthly installment agreements.  There is also a checklist available to see if you qualify for the program.   You will need to provide financial information, as well as a narrative describing your circumstances and why paying the full amount would be unfair, inequitable and create economic hardship for you.  You are not eligible if you are undergoing bankruptcy proceedings, and you will need to either include a either a 20% lump sum payment or the first installment of your periodic payment offer, or a completed form that requests exemption from this requirement.  If you require assistance filling out any of these forms, or if your situation is especially complex, then a tax attorney is your man.