Archive for September, 2011
Three percent of taxpayers in the United States do not file tax returns and as a result, face a tax evasion penalty. It is also possible to face a tax evasion penalty if you underreport your income, overestimate deductions, or use various fraudulent accounts for tax evasion. This can result in serious consequences including steep fines and imprisonment. Although tax evasion is a crime, the extent of punishment and tax evasion penalty will vary depending upon your history. If you did not file a tax return but do not owe any taxes, the consequences will be less severe. However, if the IRS can prove that by not filing a tax return you purposely avoided paying taxes, you can be convicted of a felony. In addition, tax evasion penalties can vary from $25,000 to $100,000 per year. There are approximately 3,000 IRS agents who identify tax evasion. One of the tools they use is tax audits. Although some tax audits are random, many are concentrated on taxpayers with suspicious history. For example, if you are a famous supermodel but file that you have little income, you are very likely to be audited. If the agent finds that the discrepancy is due to an innocent mistake, then the likely consequence will simply be an increased tax. However, if the agent finds that the error was made in an attempt to avoid paying taxes, then your accounts can be frozen, wages garnished, assets seized, tax liens implemented and criminal charges pressed. If you are facing tax evasion penalties, contact us for a free consultation. Call us today at (877) 829-3535 and our experienced tax professionals will assess your situation and determine your best option.
- You filed a joint return on which there was an understatement of tax due to an erroneous item relating to your spouse.
- You didn’t know, and had no reason to know, about the understatement when you signed the return.
- Looking at all the facts and circumstances, it would be unfair to make you pay the tax.
- You apply for relief under this provision within two years after the IRS begins trying to collect the tax from you.
In this economy many of us are falling behind on paying for our debts and taxes, and one of the more serious consequences is wage levy (garnishment). Wage garnishment means that a portion of your paycheck is automatically sent to debtors (including tax authorities) before you get it.
Many wonder about how to stop tax garnishments. Basically, if you have a tax problem, such as past due taxes, or unfiled returns, it will be difficult, but through communication and negotiation, these garnishments can be released or modified. This can be accomplished without having to pay the tax owing, and without immediately having to enter into a payment plan that you may not be able to afford.A skilled tax professional is the best person to consult if your wages have been garnished. To find out if we can help you, contact us for a free consultation at 877-829-3535 or on our website at http://www.ustaxshield.com. We will get the facts and be able to advise you of the best way to resolve your very serious tax problems.It is important to note that wage garnishment is not a preferred way of debt collection for any agency. This procedure is very long and costly and therefore agencies prefer to make an arrangement with you before the situation escalates. Although there are ways to stop tax garnishments after they occur, it is best to meet the problem head on before the tax authorities are forced to seize bank accounts or are forced to take your wages.
The IRS formed the 2011 Offshore Voluntary Disclosure Initiative (OVDI) to encourage taxpayers to disclose their hidden foreign accounts and entities, in order to get into compliance with US tax laws. With an original deadline of August 31, 2011, the IRS decided to extend the due date for OVDI requests to September 9, 2011, due to the potential impact of Hurricane Irene on many states.
Taxpayers who disclose their foreign accounts and entities may avoid criminal prosecution. In specific cases, the OVDI penalties are lower than other applicable IRS penalties and those who qualify should act immediately before the deadline. Interested taxpayers will need to file OVDI letters and tax documents and pass a pre-clearance screening process before submitting full disclosure. Taxpayers who are applying for OVDI and need help calculating their costs should contact experienced tax professionals who can answer all their questions and assist with this process.
US Tax Shield offers a free, no obligation consultation to help taxpayers make the right decision and avoid extensive penalties. We will work with you to assess your situation and find an optimal solution. The extended OVDI deadline is fast approaching and it is crucial to act immediately to become compliant with the law. For those who are unable to make a complete submission before the deadline, a 90-day extension may be requested. The extension must be properly filed before September 9, 2011 in order to be accepted.
If you are eligible for OVDI, it could save you thousands of dollars and prevent even bigger problems with the IRS, including potential criminal prosecution. Call US Tax Shield today at 877-829-3535 or send an inquiry through our website at ustaxshield.com.
Getting audited by the IRS can happen to anyone – whether or not they owe back taxes. Taxpayers can be audited through the mail or in person, when IRS agents visit them or they are required to go to the nearest IRS office. In person, audits are more detailed and take more time.
Taxpayers should not ignore a tax audit notice, even if they believe back taxes are not owed. There are choices when facing a tax audit. Taxpayers can handle it by themselves, by using IRS form 8821 which allows a third party to receive relevant information but it does not authorize the third party to represent the taxpayer in front of the IRS. IRS form 2848 authorizes a representative to have power of attorney and deal with the IRS on the behalf of the taxpayer.
It is always best to hire a tax professional, such as an experienced tax attorney, to ease the procedure. Dealing with the IRS is a long and complicated process that requires specific steps and knowledge of available options and procedures. Tax professionals can help reduce the amount owed in back taxes and represent taxpayers every step of the way.
It is important for taxpayers to be straightforward and cooperate with the auditor and audit process. They need to present information that has been requested but should not volunteer any additional information. It is also important to respond in a timely manner, as delaying a response will not make the IRS back off.
Taxpayers who are facing an IRS audit or back taxes should study the Taxpayer Bill of Rights. It is the first step to understanding what is permitted and what is to be expected from the IRS. It contains vital information, such as taxpayers are permitted to file for extensions if they require more time.
If you’ve received an audit notice, need help dealing with the IRS, owe back taxes, or just need advice on the best action to take, call US Tax Shield today at 877-829-3535 or send an inquiry through our website at ustaxshield.com.