Tax Problem Attorney Blog

How to Negotiate an Installment Plan With The IRS

March 14, 2017 | by Dennis N. Brager

An IRS installment plan is an agreement to pay your tax debt back over time in monthly payments. When you owe a tax debt to the IRS, they have a number of ways of collecting from you, including levying your bank account or wages, seizing your state tax refund, or seizing your home and selling it at an auction. An installment agreement is one strategy that can be used to halt these collection activities.

Before you consider negotiating an installment plan, you should be aware that there are other options that may be able to reduce your tax debt. If you are unable to pay back your tax debt, you may qualify for an Offer in Compromise. You may also consider using a tax bankruptcy, obtaining innocent spouse relief, or disputing the amounts you owe to the IRS.

All of these strategies can be used to effectively wipe out some or all of your tax debt, and they can also be combined with installment agreements in some cases. Consult with a tax attorney before you commit to a monthly payment plan with the IRS.

How to Get California Income Tax Relief

March 13, 2017 | by Dennis N. Brager

California tax problems can come as a result of an IRS tax audit, if the IRS sends the result to the California Franchise Tax Board (FTB). The FTB can also initiate its own audit, or you can simply find yourself in a difficult financial situation and be unable to pay your California income tax debt.

The FTB offers a number of ways to get tax relief. If you have a complex tax situation that requires professional assistance, talk to a tax attorney before you agree to any tax relief programs.

Installment Agreements

The IRS Is Not Always Right: How to Fight Back

March 9, 2017 | by Dennis N. Brager

Dealing with an IRS mistake can be a frustrating experience, but it happens fairly often. There are many different types of error the IRS can make:

Wrongful calculation of penalties and interest
Wrongful assessment of penalties

Can You Be Liable for Your Spouse’s Tax Debt?

March 7, 2017 | by Dennis N. Brager

Married taxpayers often choose to file joint tax returns because of the higher standard deduction amounts, marginal tax rates thresholds, and other benefits. One aspect of joint filing that taxpayers are sometimes unaware of is that both taxpayers are jointly and severally liable for the taxes due, as well as any penalties or interest that are imposed by the IRS.

Joint and Several Liability for Tax Debt

Joint and several liability means that the IRS can go after either taxpayer (or both) for the full amount of the tax debt. Even if you later divorce, the IRS can go after you for tax debt from previous tax years when you filed a joint return.

What Will an Auditor Look for in a California Sales Tax Audit?

March 2, 2017 | by Dennis N. Brager

A California sales tax audit is conducted by the California State Board of Equalization (BOE). The objective of the audit is to determine if you have paid the correct amount of sales taxes.

The main question the auditor is attempting to answer is: Did you report all gross receipts from sales of taxable personable property? Businesses that have cash transactions are often targeted for sales tax audits. You are required to provide records during the audit process.

How an Auditor Looks for Sales Tax Problems

What Are the Potential Penalties for IRS Tax Fraud?

February 28, 2017 | by Dennis N. Brager

The idea of being sent to prison for making a mistake on your tax return may seem ridiculous — and also scary — to the average taxpayer. With so many regulations to follow that even IRS employees can become confused, how can a lay person with no tax expertise be charged criminally for messing up their taxes?

Actually, they cannot be charged criminally if an honest mistake was made. While tax fraud can results in both civil and criminal penalties, there is a higher standard of proof for criminal charges. The IRS must prove criminal tax fraud “beyond a reasonable doubt”, whereas a civl tax fraud penalty can be imposed if there is “clear and convincing evidence”.

The IRS Must Prove You Intended to Commit Tax Fraud

When To Work With a Tax Litigation Lawyer as Well as a Bankruptcy Lawyer

February 23, 2017 | by Dennis N. Brager

If you have a large amount of tax debt, it is possible that you also have other types of debt that are causing financial difficulties. You may be considering bankruptcy if you have a combination of tax debt, secured debt, and unsecured debt. In this case, you might be unsure whether to seek advice from an expert tax litigation lawyer or a bankruptcy lawyer.

When to Talk to a Tax Litigation Lawyer

There are certain tax issues that require assistance from a tax lawyer, regardless of whatever other financial problems you are experiencing. If you have any of the following issues, you should contact a tax attorney:

With What IRS Penalties and Charges Can Tax Preparers Be Charged?

February 21, 2017 | by Dennis N. Brager

The IRS can go after professional tax preparers with many different penalties related to filing inaccurate or fraudulent tax returns. Targeting tax preparers allows the IRS to affect a large number of tax returns because each tax preparer can be responsible for completing tax returns for hundreds of taxpayers.

Some of the penalties related to understatement of tax that the IRS can charge tax preparers with include:

IRC § 6694(a) – Understatement due to unreasonable positions. The penalty is the greater of $1,000 or 50% of the income derived by the tax return preparer with respect to the return or claim for refund.

The Most Common Criminal Tax Violations

February 16, 2017 | by Dennis N. Brager

The IRS reported 2,672 convictions for criminal tax violations in the 2016 fiscal year. While criminal tax charges are not common, the penalties —which can include jail time — are severe enough to cause any taxpayer to be concerned.

Most criminal tax penalties can result in a five-year prison sentence and $100,000 fine. You can also be charged with civil penalties for the same violations, and you may have any professional licenses revoked.

Common Criminal Tax Violations

Can You Request the IRS Waive Penalties Based on Medical Hardship?

February 14, 2017 | by Dennis N. Brager

The IRS may offer penalty relief for taxpayers who can show a reasonable cause for failing to file tax returns or pay taxes. IRS penalties can be waived in certain cases, but the IRS will examine all of the facts and circumstances to determine if a reasonable cause exists in your particular case.

A typical situation that the IRS will consider a sound reason for failing to file or pay taxes is death, serious illness, incapacitation, or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family. If you owe a substantial amount of IRS penalties, you may want to consult with a tax attorney.

Facts Need to Establish Reasonable Cause Due to Medical Hardship