Tax and Your Well-Being
Tax issues and tax problems are some of the very threatening things to your well- being. There are three common mistakes many people make to find trouble with the IRS. These people delay needlessly. They try to exemplify themselves. They normally would appoint some inefficient agents for their work and finally fall into circumstances where they would need more help.
A tax attorney provides the relevant services in such situations, e.g. penalty abatement petitions, offer in compromise cases, business strategy sessions and full audit representations. They also provide help in preparation and tax return filing. Get help from the tax attorney to save on your taxes, to stop giving extra to the IRS, to settle your property-related issues and acquire installment agreement, to lessen your interest amount and penalties, and so on. With the help of a good IRS tax attorney, you can attain very favorable settlement of issues related to taxes, and also you can lower your tax liability significantly. The “offer in compromise” program from IRS helps the taxpayers settling down their debt in taxes.
What is the offer in compromise program from IRS?
This program helps to lessen your tax liability to a significant extent if you can prove you’re unable to pay your taxes. Looking at your affordability, IRS will issue an order so that you can pay a few pennies for every dollar that you owe. This is in fact a very nice strategy most taxpayers use; and once done properly, it saves a lot of money. But you have to be extra careful. A professional having adequate knowledge of all IRS procedures must be hired. This professional will be able to find out the least amount the IRS will charge from you. An offer that is not correctly submitted with necessary documentation may be rejected and finally you might have to pay a lot extra.
This “offer in compromise” can really save you huge money. Do you have the idea that there is only limited time with the IRS for collecting back taxes? The professional tax attorney can determine when the time limit of the IRS runs out for collecting taxes. In majority of the cases, there is very small amount of time in the hands of the IRS for collecting unpaid taxes. A careful evaluation of exactly when this time runs out is necessary. Then you may be saved. In case the time period has already run out, or it is going to run out soon, all your problems might end.
Using certain delaying tactics, the time limit of the IRS may be made to run out. As soon as the IRS goes out of time, all their collection actions have to stop.
The IRS has to give you back all your property rights.
Failing to file your tax returns
There could be many reasons why many people cannot file their income tax returns on time. Even though there are certain innocent reasons, the fact in majority of cases is that they cannot afford their taxes.
It becomes difficult getting back to the system once this happens. Suppose you filed for 1998. Then you didn’t file for 2000 as you couldn’t afford to pay your taxes. Afterwards in 2001, you were afraid to file again. So since then you have not been filing your returns. Is there anything you can do now?
It is a criminal offence to not file your tax returns. But nobody so far has been prosecuted criminally who has filed back returns voluntarily before getting caught. The key is to file before being caught by them.
The penalties of IRS may be even 100 percent to 150 percent of original unpaid taxes. The extra penalties are sometimes so high that it becomes truly very difficult to pay back the whole balance.
The penalties imposed by the IRS are meant for punishing the rule-breakers. But the IRS can forgive you and save you from paying the extra. You need to give a convincing explanation to the IRS, requesting not to punish you as you were not guilty.
Tax and Your Well-Being by Steven Patterson