Proven Orange County IRS Tax Attorney Ready To Fight For You
If you run a company, you know that IRS audits are time-consuming, expensive and stressful, taking away energy and time from things you should be focusing on. Having an experienced Orange County IRS tax lawyer by your side reviewing your IRS notice is very important and can help you to navigate through your various options. No one likes to receive an IRS audit notice. But it’s important to understand how the IRS is selecting your tax return for audit.
Taxpayers often try to amend tax returns from a prior year as quickly as possible. But, amended returns are highly likely to be audited. The secret is getting a trusted Orange County IRS tax attorney before you make an adjustment to review the tax returns.
IRS computer score
Everything on your return is utilized to give data to the IRS who in turn, scores your return. Your zip code, your occupations, income, and expenses are for the most basic things that will tip the IRS off that there was a generous change in your return or that you are not within the average business-standard. The IRS is overwhelmed and tends to come up short. They choose returns they believe will have the best possibility for a tax adjustment.
A Schedule C with low revenue or high costs
A Schedule C is a page on your individual tax return where your business income and expenses are reported. As a business grows, most CPAs and lawyers will suggest that a sole proprietor or Schedule C business set up a separate legal entity for legal protection and to reduce your chances of an audit. Most Schedule C taxpayers with revenue or expenses that exceed $100,000 have a higher probability of an audit.
In addition, there are many other ways the IRS selects a return for an audit such as payroll initiatives, tips from ex-employees/ex-spouse/ex-partner and state agency audits. It is highly advisable that you speak with Allison Soares. Call us today!
Some Important IRS Terminology
The IRS Appeals Department is comprised of very knowledgeable and experienced professionals. As a business, you have the right to appeal their decision following an audit. There are various ways of appealing an IRS audit and the strategy you take can influence the consequences of your audit. Contact our tax attorney and find out what your options are and what is the best way to appeal an audit decision.
The IRS Collections department comes in play when a person or business owes money to the IRS. Here are some of the ways a person or business can owe money to the IRS: currently not collectible, partial pay installment agreements, streamline installment agreements, offer in compromise, and bankruptcy. IRS matters can be very confusing and many taxpayers will often misunderstand the difference between the Assessment and the Collections side of the IRS. The Assessment side handles your account when you file a tax return or if your return is audited, while the Collections side is only preoccupied with collecting what you owe and does not get involved with “why” you were audited in the first place.
Speak with our experienced tax lawyer to find out what you can expect, what the process looks like, and what your best options are.
IRS Levies & Liens
There are 3 common tools that the IRS uses to collect payments from those who owe money: IRS levies, IRS liens, and wage garnishments.
IRS Levy: In this scenario, the IRS collects the money owed directly from your bank account. This is a very aggressive method and it is only used after they tried several times to contact you and have failed to reach you. If you receive a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” you have little time left to contact the IRS before they freeze your account.
IRS Liens: A tax lien is the government’s legal claim to property that is held in your name. A tax lien attaches to all of your property, including property that you may acquire in the future.
Wage Garnishments: If your employer tells you they’ve received a Notice of Wage Garnishment, this notice is effective immediately upon receipt and it required that your employer must pay the IRS the proper levy amount on each payday that the levy remains in effect. Contact us immediately so we can guide you on how to best navigate this scenario.
IRS International Compliance Issues: There are two entities that require you to report on foreign accounts and assets: the IRS and the Department of Treasury. Many people are not aware that they must report to both departments. Reporting to one of them and forgetting the other can cause serious penalties, as the two departments do not exchange information (reporting to one does not mean the other is also receiving the information). These are two separate reports, they use different forms, and have different requirements. If you have accounts or assets outside of the United States, or if you own a property abroad, ask for expert advice from our Orange County and San Diego tax attorney.
Innocent Spouse Relief
Generally, you and your spouse are jointly liable for your tax debt. If you qualify for Innocent Spouse Relief you will not be responsible for the taxes, interest, and penalties. This scenario occurs when a spouse did not report or under-reported certain items on the joint tax return. This could happen even if the couple is divorced if the error took place on a previous joint tax return.
Although many taxpayers believe they qualify, Innocent Spouse relief can be very difficult to establish. One of the hardest hurdles to overcome is that the “innocent” taxpayer did not know or did not have any reason to know there was an error or an issue with the tax returns. It is important to reach out to a tax attorney in San Diego or Orange County to determine if you qualify for Innocent Spouse Relief.
Payroll Tax Issues
There are many tax requirements that employers must abide by. Employers are required to timely report and deposit all employment and payroll taxes. If the employer fails to meet these requirements they will be subjected to substantial penalties and interest. Payroll taxes can also be weighed against an owner, officer or employee of the business. If you have any payroll tax issues, a business tax attorney can determine what your options are and how you can resolve this very expensive area of tax law.
Trust Fund Recovery Penalty Issues
The IRS wants businesses to pay employment and income taxes timely. When an employer takes payroll taxes from an employee’s paycheck, the employer is holding the money for the government in “trust” until they pay that money to the IRS. If the employer does not make these “trust” payments, the IRS can collect the funds that were withheld from the employee from you personally. The business does not have to stop doing business for the IRS to attempt to collect from you as an individual. If you have been assessed a trust fund penalty, you have a very limited time to appeal this assessment before it goes final. An Orange County or San Diego tax lawyer can determine the assessment can be prevented or whether you need a timely appeal to the assessment. CALL our lawyer today.