Common Tax FAQ’s
When Should You Hire a Tax Relief Attorney?
Over 8 million people in the U.S. owe a combined tax debt of 83 million dollars in back payments and added penalties to the IRS. Unfortunately, many U.S. citizens will undergo scrutiny from the IRS or their state government tax agencies for a variety of reasons. The most common excuses people cite when they haven’t sufficiently declared their earnings are:
- They’re too busy
- They’re overwhelmed and unsure of how to correctly file their taxes
- They’ve experienced hardship or other life disruption
- They don’t have enough money to pay their taxes
Getting into trouble with the tax authorities can be terrifying. And it’s true that the IRS can send people to jail. In 2016, over 1000 people were criminally charged by the IRS, which comes with not only stiff financial penalties, but also the threat of jail time. If you are convicted of criminal tax evasion or tax fraud, you can be sentenced with jail time over one year. More than 500 of those people who were charged in 2016 had to spend time in a jail cell.
If the IRS has contacted you for a tax audit, or you owe a debt for taxes, it’s natural to panic. But, a qualified tax lawyer can help you reduce your penalties and avoid jail time. Our elite tax attorneys at USAttorneys have helped thousands of taxpayers like you deal with the IRS quickly and efficiently.
When should you use an IRS tax lawyer?
If you owe taxes, it’s best to hire a tax attorney as soon as possible. Without one, you could face even stiffer penalties and fines. A qualified tax attorney will have the experience necessary to understand applicable tax laws and how they apply to your specific case.
Plus, it’s best to have an attorney handle interactions with tax officers and agents. Most of the time, tax officers working on behalf of the IRS will ask you questions that, to you, may seem innocuous. But, these questions are designed to get you to admit to fraud or evasion. Fraud and tax evasion are serious criminal charges. Once you get a certified letter from the IRS, you’ll want to search for a qualified tax law attorney in your state. Our search engine at USAttorneys will put you in touch with an experienced tax lawyer who can handle the technicalities involved in tax resolution and the settlement process so you can avoid high penalties and jail time.
What are the specific issues a tax attorney can handle for their clients?
If you have a hearing for tax court, it’s crucial that you have an attorney to represent you and protect your interests. Without one, you’re at the mercy of the IRS prosecution and the judge.
Tax evasion means that you willfully failed to report your income. Tax evasion penalties can range from small fines all the way to several years in prison. In many cases, a tax relief attorney can get tax evasion penalties dropped or lowered if they can prove the taxpayer had a legitimate reason for not staying in compliance with the tax laws.
Usually, IRS penalties fall under civil law, not criminal law. But in some cases, the IRS can charge you with a crime. If you’re under a criminal investigation, you should never take this lightly, and you’ll want to hire an attorney to protect you ASAP. Also, if you have any suspicions that you may be charged with a crime after dealing with the IRS, you’ll want to hire an attorney before they officially file criminal charges against you.
Tax fraud refers to the following actions on behalf of the defendant:
- You falsified deductions
- You took fake tax credits
- You significantly understated your income intentionally
In these cases, you’ll need the benefit of attorney-client privilege when discussing your tax issues with the IRS.
When it comes to back taxes, the majority of the fee is usually comprised of tacked-on penalties. In fact, almost half of all outstanding IRS bills are a result of these penalties. An experienced tax attorney can help you lower any tax penalties you may be facing.
The IRS can claim rights to everything you own. If you can’t resolve a tax lien, then the IRS can issue a tax levy. With a tax levy, they can seize your assets. Assets that can be taken include wages, bank accounts, real estate, cars, boats, and even retirement accounts. Tax debt attorneys can stop levies and protect your hard-earned assets.