Income Tax Law Archives - Page 2 of 2

August 19, 2017 By Michael

IRS Tax Audit Questions: During the Audit

In our last post on IRS Tax Audits, we talked you through the initial shock of learning you are the subject of an audit. And we answered some questions, courtesy of the IRS, about how to prepare for the IRS tax audit process.

Today, the lead-up is over, and the audit begins; what can you expect? Tax attorney Joseph M. Arndt and the IRS Away team considers some of these questions, including the most important of all: Who can I turn to for IRS tax audit help?

IRS Tax Audit Question #5: How Long will the Audit Take?

There are a lot of variables. One might be how far the IRS is going back in your records. Generally, that’s is up to 3 years. They might go further if the situation warrants it, but they generally don’t go past 6 years.

Otherwise, there are a lot of logistics to consider: how complex is your case? Did the IRS receive all the info they need? Was everyone able to gather together in a timely manner? Will you agree with the IRS’ judgement, or will you contest it?

IRS Tax Audit Question #6: Do I Have any Rights Here?

You do have rights during an IRS Tax audit. These include the right to:

Professional, courteous treatment
Privacy and confidentiality
Know what the IRS wants, why they want it, and what they will do if they don’t get it
Appeal the IRS decision, even in a court of law

And, one of your most important rights:

The right to qualified representation (and that’s why your first call should be to Tax attorney Joseph M. Arndt and IRS Away team!)

IRS Tax Audit Question #7: What are the Possible Outcomes?

When your IRS tax audit concludes, it can go one of 3 ways:

No change: you have answered all their questions and provided sufficient documentation, and they are happy
Agreed: they have determined that your return needs to be changed, they have determined what you owe (if anything), and you agree with them
Disagreed: they have made their findings, and you DO NOT agree with them

IRS Tax Audit Question #8: Final Steps?

If you Agree, and you owe, you must sign off on the finding. Then you can look into payment plans. If you Disagree, you can request a meeting with a higher-up in the IRS structure. The IRS offers mediation, and also an appeals process if certain conditions apply.

IRS Tax Audit: Don’t Go it Alone!

As we said, during an IRS tax audit you have a right for courteous, professional treatment. This doesn’t mean friendly and stress-free. And don’t expect them to hold your hand and thoroughly educate you while you respond to their queries and decide your course of action. In short, you must go into the process confident and well-prepared. That’s why you need professional representation by Tax attorney Joseph M. Arndt and the IRS Away team. Contact us today!

April 4, 2017 By Michael

Don’t Invite IRS Tax Problems at Filing Time!

Last time, we introduced you to some IRS tax problems called the IRS Dirty Dozen list. This is an annual collection of DON’Ts to consider when you, or a tax pro, is filing your IRS tax return. We discussed two of the biggest tax problems on the list, falsifying income and using fake forms. And we warned you that, no matter who dreamed up the scheme, YOU are ultimately responsible when the IRS discovers the problem.

Today, let’s look at some of the other IRS tax problems on the list.

Fake Charities: The main culprit here are charities that use names that sound similar to names you know and trust. They prey on your generosity, taking money from you AND the legitimate charities. Avoid IRS tax problems by using the internet to thoroughly investigate every charity you support! Also, the IRS has a helpful list to identify the known offenders.

Inflated Refund Claims: Red flags should pop up whenever: a tax preparer “promises” or “guarantees” you a bigger tax refund before they even take a look at your records. Be wary when a tax preparer bases their fees on a percentage of your tax refund. Be suspicious when a tax preparer asks you to sign a blank return before they get started.

Frivolous Tax Arguments: These days, people are full of passionate opinions about the way our government conducts business. One way to invite IRS tax problems? Use your tax return as a forum for protest to avoid tax responsibility. Know that the IRS has heard every argument, and penalties are high. Check out this IRS rundown of frivolous tax arguments.

Falsely Padding Deductions on Returns: In the midst of a tax panic, Homer Simpson once declared that “Lisa is now a clergyman, Maggie is seven people and Bart was wounded in Vietnam.” Avoid IRS tax problems – don’t be like Homer! Also, check out these IRS FAQs on proper Earned Income Tax Credits and child tax credits.

IRS Tax Problems? Contact IRS Away!

It bears repeating: whether you have you committed tax fraud knowingly, or an unscrupulous tax preparer led you astray, YOU are ultimately responsible. The time to address your IRS tax problems is NOW. But you don’t have to go it alone. The IRS Away team offers you the peace of mind knowing that your tax problems are being dealt with effectively and professionally. Contact tax attorney Joseph M. Arndt III at (803) 771-4037 for a free consultation.

September 8, 2016 By Tax Attorney

Questions to Ask Your Tax Lawyer

As we discussed in a previous post, there may come a time when you need to hire a tax lawyer. If and when that day comes, you will definitely want to hire the RIGHT tax lawyer, someone with the skills and experience to help you deal successfully with your specific IRS problem. How do you determine if this is the right tax attorney for you? Here are a few questions you can ask.

Proper IRS Credentials
Is the tax lawyer an IRS Licensed Practitioner? Can he or she represent you on any IRS tax matters such as audits, payment/collection issues, and appeals? The IRS publishes a Directory of properly credentialed tax lawyers and other tax professionals in your area.

You can also ask about professional societies and organizations that your tax lawyer belongs to. Many professional societies, such as the American Society of IRS Problem Solvers, have rigorous ethical standards and ongoing educational requirements for their members.

Level of Experience
How long has your tax lawyer been in practice? How experienced are they in representing clients with your type of IRS tax problems? How successful has this tax lawyer been in representing clients with income tax problems such as yours?

A Concentration in Tax Law
One major question you should ask a tax lawyer is about his or her professional focus. Are they primarily a tax lawyer, or an attorney that does tax law – as well as family law, real estate law and others? Whatever your IRS tax problem, it makes sense to hire a lawyer who works in income tax law consistently, one who negotiates with the IRS on a regular basis and who has a firm command of the tax code, tax law changes, loopholes, and legal tools and remedies.

Contact IRS Away Today
IRS Away welcomes questions like these, because we have the credentials, the experience, and a track record of success in dealing with IRS tax problems like yours. If you live in or around Columbia SC and are experiencing income tax problems, help is nearby. Contact tax attorney Joseph M. Arndt III at (803) 771-4037 for a free consultation.

Put Your IRS Tax Problems Behind you - NOW!