How to Hire a Tax Lawyer for Your Small Business

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How to Hire a Tax Lawyer for Your Small Business

Unknown   March 02, 2018  

Hiring the right tax lawyer for your small business is important. Getting good tax help can translate into money for your business. Ideally, you should form a long-term relationship with a tax professional so you have someone to call year-round. Because this person is so important to your business' bottom line -- and will help ease your stress throughout the year -- take the time to learn about the different types of tax pros, how they can help, and how to choose one.

Types of Tax Advisers 

Anyone can claim to be a tax expert. And people who prepare tax returns don't have to be licensed by the IRS. Make sure your tax preparer is one of the following:

• Enrolled agent (EA). An EA is licensed by the IRS. The EA has either passed a difficult test or has at least five years of experience working for the IRS. Enrolled agents are the least expensive of the tax pros and often offer bookkeeping and accounting assistance.
• Certified public accountant (CPA) and other accountants. CPAs are licensed and regulated by each state. They perform sophisticated accounting and business-related tax work and prepare tax returns. Larger businesses or businesses with complex business tax returns often need CPAs. The larger CPA firms are expensive. Smaller CPA firms are cheaper and may be better for the typical small business.
• Tax attorney. Tax attorneys are lawyers with a special tax law degree (called an L.L.M. in taxation) or a tax specialization certification from a state bar association. Tax attorneys can be expensive. But you should consult one if you have a tax problem, are in trouble with the IRS, need legal representation in court, or need business and estate planning.

Whatever type of professional your business needs, make sure he or she has specific knowledge and experience in helping small businesses. It's even better if you can find someone who already knows a good deal about your type of business or industry.

Sea also : How To Hire a Tax Lawyer & Get Help with Tax Problems

How Tax Pros Can Help Your Business

If you find a good tax professional, you seek his or her assistance in many ways throughout the year.

Information and advice. Your tax professional should be able to help you make key tax decisions and should provide you with basic information and advice.

Record keeping. If you loathe record keeping, have your tax pro set up a record keeping system tailored for your business.

Tax form preparation. Most businesses can benefit from having a professional prepare their tax forms. If you do it yourself, at least run your documents by a tax pro. The tax pro can point out tax deductions that you or your software missed, as well as highlight red flags that might get you into trouble.

Advice in dealing with the IRS. If you are dealing with the IRS on your own, you can get advice and coaching from your tax pro.

Representation when dealing with the IRS. An attorney, CPA, or enrolled agent can represent you before the IRS -- so you don't have to deal with it at all. A good tax pro knows how to handle the IRS bureaucracy.

Choosing the Right Tax Lawyers for Your Business

Take these steps to get a good tax professional:

Get several names of tax pros. Some good ways to find tax professionals include:

• Personal referrals. Ask friends, family, your attorney or banker, or business associates for recommendations.
• Advertising. Look in trade journals, directories, phone books, and newspapers.
• Professional associations and referral panels. Check local bar associations and CPA societies.  The National Association of Enrolled Agents  can assist you in locating an EA. Don't construe a referral from one of these agencies or associations as a recommendation or certification of competence.

Interview candidates. Interview at least three people or firms. Find out if the tax pro has time to provide consistent help and if he has the experience your business needs.

Test the tax pro's know-how. Ask questions (pulled from self-help books or online legal information) to test the tax pro's attitude towards the IRS and knowledge of small business tax issues. Find out if she has represented clients before the IRS, particularly in IRS audits.

Ask yourself questions. As you go through the selection process, ask yourself if the tax pro gives you a feeling of confidence, seems knowledgeable, and appears to be able to go to bat for you in front of the IRS. Finally, ask yourself if you'd feel comfortable working with the tax pro.

Take your time. Don't rush the process. The best time to look is in summer or fall -- not the January to May tax season.

Discussing Fees

Make sure you understand the tax pro's costs and fees up front. Some have a fixed fee for various tasks, such as bookkeeping, accounting, and tax form preparation. Others charge by the hour.

You may be able to negotiate the fees. If you catch the tax pro at a slow time or if he or she believes you'll be a long-term client, you might get a discounted rate. Either way, once you and the tax pro agree on the charges, get a written fee agreement. This will help if you have a tax bill dispute later.

10 Ways to Settle Your IRS Tax Debts For Less Than What You Owe

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10 Ways to Settle Your IRS Tax Debts For Less Than What You Owe

Unknown   December 08, 2017  

10 Ways to Settle Your IRS Tax Debts For Less Than What You Owe - Do you Find dealing with the IRS frustrating, Intimidating and Time-consuming. You’re not alone.

While taxpayers may always represent themselves in front of the IRS, many turn to professional tax help (specialized IRS Tax attorneys, CPAs, and Certified Tax Resolution Specialists) in order to maximize their chances of winning a tax settlement while minimizing their contact with the IRS agents. Owing the Internal Revenue Service (IRS) money is intimidating to most people. The IRS has the power to garnish your wages, seize your assets and place a lien on your property in order to obtain the money that you owe them. However, these actions can be prevented by communicating promptly with the IRS about your situation. The IRS is usually willing to work with taxpayers, and there are several options available so that you may resolve your debt issues.

As a creditor, the Internal Revenue Service carries the weight of the federal government behind it. In addition to having extensive methods to collect on outstanding tax debt, the IRS also can be extremely patient. As long as the IRS knows it is going to get paid someday, it can wait until you are in a better financial position to pay. Of course, the longer you take to pay your tax debt, the more you will owe.

1. Installment Agreement:
A monthly payment plan for paying off the IRS. If you think you are a victim of a fraudulent investment scheme (“Ponzi” Scheme), where you have lost all or most of your investment, you may be eligible to take advantage the United States Tax Code (law) to recoup 30% to 40% of your losses. This highly technical and complex process can help you reduce taxes paid in previous years resulting in refund with interest.

2. Partial payment installment agreement:

A fairly new debt management program where you have a long term payment plan to pay off the IRS at a reduced dollar amount.Much like a monthly credit card payment, IRS payment plans allow you to pay off your unpaid back taxes in installments instead of all at once. A well-qualified tax debt attorney or Certified Tax Resolution Specialist will negotiate the lowest possible monthly payment for your needs.

3. Offer in Compromise:

A program where you can settle your tax debts for less than what you owe. Requires making a lump sum or short term payment plan to pay off the IRS at a reduced dollar amount.If you owe the IRS more than you can afford to pay, this could be the plan for you. Essentially, an Offer in Compromise gives you the opportunity to pay a small amount as a full and final payment. If you qualify for the Offer in Compromise program, you can save thousands of dollars in taxes, penalties and interest.

4. Not currently collectible:

A program where the IRS voluntarily agrees not to collect on the tax debt for a year or so. Currently Not Collectible means that a taxpayer has no ability to pay his or her tax debts. The IRS can declare a taxpayer “currently not collectible,” after the IRS receives evidence that a taxpayer has no ability to pay. This is a useful tool because you can file for a collection appeal to stop an IRS levy, lien, seizure or the denial or termination of an installment agreement. The collection appeal gives you the opportunity to explain how you think the situation could be solved without the IRS levy or seizure.

5. Lower Your Debt With Credit Card Debt Settlement:

There are two methods of credit card debt consolidation: through a credit card debt settlement company or on your own. Credit card debt settlement companies should be avoided. They collect your payments for months before making a settlement offer – if they make an offer at all. Meanwhile, you continue receiving collection calls and negative payment marks on your credit report. You’ll get better and faster results settling debts on your own.Final credit card debt settlement agreements should be in writing. Either draft an agreement of your own or have your credit card company send you an agreement. Make sure you and someone from your credit card company have both signed the agreement before you send payment

6. File bankruptcy:

Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Filing for bankruptcy is one of five ways to Tax Debt Relief, but you should consider bankruptcy only if you meet the requirements for discharging your taxes. Chapter 7 provides for full discharge of allowable debts. Chapter 13 provides a payment plan to repay some debts, with the remainder of debts discharged

There’s no “secret sauce” in paying off tax debts. These are the only five ways of getting out from under the IRS’ aggressive debt collection tactics. If a tax pro promises you that you can save “pennies on the dollar” through an offer in compromise, that person is probably more interested in selling you something you don’t need instead of focusing on your unique financial situation and determining what the best course of action is for you.

7. Release Wage Garnishments.

When you owe Uncle Sam money, the IRS can levy your wages, salary, or federal payments until the levy is released, your tax debt has been fully paid off, or the time expires for legally collecting the tax. There’s room here to bargain for a release or modification to the garnishment if you don’t have enough money to survive with the levy.

8. Stop the IRS from Levying Your Bank Account.

The IRS can issue a bank levy to take your cash in savings and checking accounts to collect back taxes. When the IRS levies a bank account, the bank is required to remove whatever amount is available in your account that day (up to the amount of the IRS levy ) and send it to the IRS in 21 days unless notified otherwise by the IRS. Part of the process of resolving your IRS debt is obtain a release of the levy from the IRS.

9. Innocent Spouse Relief.

If you happen to inherit your spouse’s IRS tax problems, you have an escape route. If you can prove that your circumstances fit within the IRS guidelines for innocent spouse tax relief, you may not be subject to the taxes caused by your spouse or ex-spouse.

10. Pay Attention to the Expiration of the Statue of Limitations.

The IRS has 10 years from the date of assessment (usually close to the filing date) to collect all taxes, penalties and interest from you. An expert tax attorney, tax CPA or tax resolution specialist can help resolve your back taxes and IRS problems by just by advising and strategizing with you to wait out the 10 year expiration date.

This is a useful tool because you can file for a collection appeal to stop an IRS levy, lien, seizure or the denial or termination of an installment agreement. The collection appeal gives you the opportunity to explain how you think the situation could be solved without the IRS levy or seizure.

source : http://defensetax.com/10-ways-to-settle-your-irs-tax-debts-for-less-than-what-you-owe/

How To Hire a Tax Lawyer & Get Help with Tax Problems

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How To Hire a Tax Lawyer & Get Help with Tax Problems

Unknown   December 07, 2017  

The IRS is knocking at your door. They want your home because you haven’t paid your income taxes. Before you walk away and leave it all behind, consider how a tax lawyer can assist you with Tax relief.

Who is a Tax Lawyer & How can they help?

Tax lawyers do not practice tax litigation exclusively. In fact, many tax lawyers handle a variety of tax-related duties for individuals and corporations including:

• Navigating complex tax codes and laws
• Structuring and documenting business entities
• Overseeing business tax planning to legally minimize tax burdens
• Advising clients on estate, tax, and financial planning
• Handling disputes before the IRS
• Another thing that a tax lawyer can do is relieve the stress you may feel by dealing with the IRS or other tax agency on your behalf.

A tax litigation attorney can represent you in state or federal Tax Court, or in other courts including the District Court, the Court of Federal Claims, or even the Bankruptcy Court. Additionally, a tax attorney may represent tax professionals who are the subject of IRS enforcement proceedings such as injunction actions or violations.

Do you need a Tax lawyer to help with Tax relief?

having someone there to help, an expert in their field, can go a long way in making a difficult process easier to handle.

A tax lawyer, sometimes called a tax litigation lawyer or tax controversy lawyer, can help you with:

• Tax audits. If a taxing agency questions whether you paid the right amount of taxes, they might request an audit. Audits come in three forms:
• Correspondence audit. For less complicated audits where it can be done by mail.
• Office audit. You’ll need to take your receipts and other documents related to specific questions about your return to a local IRS office.
• Field audit. An IRS agent comes to your home or place of business.
• Tax appeals. If need assistance understanding your appeal rights, what you can appeal, and what to expect during the appeal process, a tax lawyer can provide guidance.
• Tax collection. Individuals and businesses are responsible for paying a variety of local, state, and federal taxes including income, sales, payroll, and excise (such as alcohol, fuel, and luxury) tax. Tax lawyers can help you understand your responsibilities and walk you through the collection process, if need be.
• Tax penalties. The IRS imposed tax penalties include failure to file, failure to pay, negligence, disregard, and many others. A tax lawyer can help you navigate the many ways the IRS (and other taxing agencies) penalize taxpayers..

How else can Tax lawyers help you?

While many people innocently make errors when filing their taxes, if the IRS accuses you of a more serious crime such as tax evasion, failure to collect employment taxes, or filing false documents, a tax lawyer can help.

Penalties for criminal tax fraud can include up to five years in jail, plus fines and the cost of prosecution for each tax crime. But there’s more. Afterwards, the IRS Examination Division will assess taxes along with a civil tax fraud penalty.

Keep in mind that the IRS understands that sometimes people make mistakes. Mere carelessness is not tax fraud. Fraud includes overt acts such as:

• Intentional understatement of income
• Failure to file tax returns
• Concealment of income or assets
• Engaging in and concealing illegal activities
• Failure to make estimated tax payment

If you need assistance with criminal tax fraud or tax evasion, you need a tax lawyer. A tax lawyer understands the process, how a civil tax case works within the system, and the most important factors to consider. There is no substitute for a knowledgeable tax lawyer when it comes to tax debt issues.

source : supermoney.com

How to Stop IRS Wage Garnishment

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How to Stop IRS Wage Garnishment

Unknown   December 07, 2017  

Wage garnishment is a means to collect money directly from your paycheck before you are paid. If you’re facing a wage garnishment, it’s likely you were having problems paying a creditor. Now there’s a judgment against you, and your employer must take money from your paycheck to pay this creditor.

Garnishments can leave you struggling to pay the essential living expenses. Fortunately, you still have options to stop wage garnishment. If you’re facing wage garnishment, there are steps you can take to stop the process.

How Much of Your Wage Is at Risk?

Under federal law, creditors can garnish up to 25 percent of your disposable wage. Your "disposable wage" is the amount left after legally required deductions for taxes and Social Security are made. Garnishments for child support or back taxes may be withheld at a higher rate, up to 50 percent of your net pay.

Under Title III of the Consumer Credit Protection Act, extremely low earners are not subject to wage garnishments. In some states, the limits of wage garnishment are more consumer-friendly than federal protections. Many states have exemption laws designed to keep creditors from pushing debtors into poverty. You should check your state’s Consumer Affairs Department to know what protections are available to you.

Stopping Your Wage Garnishments

There are steps you can take to stop a wage garnishment. The type of garnishment and your personal financial situation will determine what action is best. When in doubt, contact an experienced attorney or accountant since some of these options will impact your ability to get future credit.

Option 1 – Negotiate with the Creditor

The best time to stop a wage garnishment is before it happens. Try to negotiate a payment plan before a judgment is entered against you. A creditor may still work with you after the garnishment is in place, so it doesn’t hurt to ask.

Option 2 – Seek State-Specific Protections

In some states, if you can show that the money being garnished is needed for the essentials of life, then you may be able to stop the garnishment.

Option 3 – Fight the Judgement

There are some ways to vacate, or set aside, the judgment. If you think either the debt or the judgment is improper, you can file a motion to vacate the judgment and list the reasons why the judgment is invalid. One reason for a set-aside is that you were not properly noticed of the law suit. If the judgement is set aside, you will need to negotiate a payment with your creditor before they secure a new judgement.

Option 4 – Hire an Attorney

An experienced attorney can help you negotiate a settlement with your creditor or stop a wage garnishment by fighting a judgment or filing a bankruptcy action. Select attorney who understands wage garnishments and has experience in consumer credit issues.

Option 5 – Quit Your Job

If you do not receive a paycheck, then your wages can’t be garnished. This is an extreme step, but it may give you an opportunity for renewed negotiations with your creditor. This is only a short-term fix because the creditor will eventually find your next employer.

Option 6 – Declare Bankruptcy

Once you file for Chapter 7 bankruptcy, an automatic stay will end your wage garnishment, although you may have to alert the clerk of court and the creditor of the bankruptcy filing. You should not rush into this option because it has lasting impact on your credit, and may not discharge all your debts. Bankruptcy will suspend a garnishment for back taxes temporarily. Child support garnishments are unaffected by bankruptcy.

Receive a Free Legal Review of Your Garnishment Issue

It’s frightening when you receive a notice that your wages are being garnished. You may be unsure how to fight back. If you’re being threatened by a creditor with a debt collection or wage garnishment, an experienced attorney can ensure your rights are protected. Debt collection lawsuits don’t have to end with your wages garnished. Sometimes, a creditor will settle the case for less than the debts value. Receive a free claim review to learn more about your situation.

Four Tips for Settling Your Tax Debt With the IRS Offer in Compromise

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Four Tips for Settling Your Tax Debt With the IRS Offer in Compromise

Unknown   December 07, 2017  

The IRS Offer in Compromise program is an effective way of reducing an individual's total tax debt when they meet certain qualifications. However, the IRS rejects a significant portion of these offers (currently, it is about 90%), while the granted taxpayer finds themselves paying the IRS too much money.

The following paragraphs will discuss a few tips to help you successfully prepare your Offer in Compromise and eliminate all of your tax issues.

1. Actual Expenses and IRS Standard Expenses

Regardless of what your actual expenses may be, the IRS has policies in place limiting how much you can designate as living expenses. Sometimes the IRS will permit individuals to claim expenses exceeding the amount allowed by the national standards, but there will be times when they won't. When arguing for a higher amount, the taxpayer must present full documentation to prove why their expenses are, in fact, essential living expenses. Find out what the IRS considers to be ordinary and necessary. Furthermore, learn when you should utilize the IRS standards for calculating expenses, as this can sometimes be more advantageous than using your actual expenses.

2. Asset Values

Check out all the ways to minimize or exclude equity in assets. Don't overvalue your assets. Take full advantage of every available tax deduction opportunity and find out how to write off the majority of your business expenses. Learn the intricacies when claiming your mileage deduction or computing depreciation of cars. Compare the deduction using the actual expense method and the standard mileage rate to find out which will offer the best tax results for you. Understand the limitations of 401(k) withdrawals or taking loans and when the equity in income-generating assets will not be added to the future income stream of Reasonable Collection Potential (RCP).

3. Collection Statute Expiration Date (CSED)/Statute Expiration

Make full use of the Collection Statute Expiration Date (CSED), even if you have the ability to pay. If the full payment cannot be recovered through an Installment Agreement before the CSED, the IRS will definitely look at accepting your offer instead of gambling on it.

4. Appeal if Your OIC is rejected

If your Offer in Compromise is rejected by the IRS, the first thing to do is look at why it was rejected. The problem will likely be with the income and expense tables the offer examiner prepared. Check if there is anything inaccurate or arguable, considering that the examiner may not have looked at each issue as deeply as they should have. At that stage, place whatever disputes you have on the table. This may be the difference between getting approved and going to appeal. You might also get an alternative solution through appeal.

Dealing with the IRS

The Offer in Compromise program may be your ideal route to taking care of your taxes owed, resulting in a fresh start with the Internal Revenue Service. But the process is complicated and very comprehensive, requiring great attention to detail and an understanding of several IRS regulations, procedures, and tax laws.

The aforementioned basic tips will get you on the right track; however, there are a number of other tricks involved in any OIC case. Learning this on your own can prove to be more expensive over time than you ever dreamed of. Plus, there are adverse consequences for sending in an inappropriate OIC. Expert representation from a tax lawyer will ensure that your Offer in Compromise has a higher chance of being processed and accepted.

Article Source: http://EzineArticles.com/expert/Anthony_E_Parent/1615792
Article Source: http://EzineArticles.com/8807800
by : Anthony E Parent  

How Much Do I Owe The IRS? How to Find Back Taxes Owed

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How Much Do I Owe The IRS? How to Find Back Taxes Owed

Unknown   December 07, 2017  

If you fail to file or pay your taxes on time or in full, the IRS will send you notices known as “CP Letters.” The IRS will typically contact you 60 days after the April 15th (April 18th in 2011) tax filing deadline, or send letters to your last-known address.

Hiccups in the notification process are becoming less common due to the continuous improvements made to the Automated Collections System (ACS). It is important to know precisely what you owe so that you can properly deal with your situation and understand which tax solution is best for you.

Ways to Determine How Much You Owe the IRS in Taxes

Visit or Call Your Local IRS Office: 

There are local IRS offices all over the country, making it easy for you to call or visit an IRS official in your area. Since the IRS may ask you to resolve your taxes in a specific manner when you visit your local office, you may want to consider contacting a professional beforehand to be sure that your best interests are at hand. The IRS should provide you with either your IRS Transcript or your Record of Account when you arrive at your local office. Alternatively, you can call the national IRS office at 1-800-829-1040, but in most cases it will take 1-2 weeks for them to deliver your records to you.

Contact a Professional Tax Team: 

A tax attorney, CPA, EA or other tax professional can typically act on your behalf or represent you through power of attorney to find out how much you owe the IRS. They can also offer you advice on the best way to resolve your back tax situation. It is always beneficial to work with a professional if you know that you owe more than $10,000 because normally fees cannot be as easily justified at amounts below this level.

Request a “Record of Account”:

Here you will use Form 4506-T, titled the “Request for Transcript of Tax Return” form, to obtain the total tax liabilities, payments and adjustments on your account for a particular year. Your Record of Account will tell you the balances (if any) for each tax period. Your tax professional can also request this documentation on your behalf. Many people confuse this with Form 4506, which is used to obtain a full copy of a tax return and any included attachments dating back more than 4 years, and costs $57 dollars per year requested. On the other hand, Form 4506-T can provide you with the following information summary:

1. Tax returns and account transcripts with tax information for the current year, as well as the past three years
2. A Record of Account (federal tax liabilities, federal payments received and other adjustments).

How to Request Your IRS Record of Account and IRS Account Transcript

• Download and print Form 4506-T, or call the IRS and ask them to send it to you
• Fill out your basic contact information at the top
• Indicate individual income tax (1040), partnership (1065), or business (940) on Line 6
• Check C for requesting a Record of Account; Check B if you want an Account Transcript
• On Line 9, indicate which years you want to look at (if more than four, use Form 4506)
• Sign, date and send Form 4506-T to the correct IRS address (find it on Page 2 of the form)

*If you are not being helped by a tax professional, it is recommended that you read and pay close attention to the instructions provided on Form 4506-T. It should take you approximately 45 minutes to complete and submit the form.

Now that you have a better understanding of how to determine exactly what you owe, look to work with a professional tax team. This is especially important if your IRS debt amount is more than $7,500, since not only does that make the services more cost-effective, but sometimes you can reduce the total amount you owe.

source : https://www.backtaxeshelp.com/faq/find-how-much-irs-taxes-owed.html

Top 7 Best Tax Attorneys in Houston

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Top 7 Best Tax Attorneys in Houston

Unknown   December 07, 2017  

If you are searching for a Houston Tax Attorney, you can try Top 7 Best Tax Attorneys in Houston, here there are :

1. Charles Zagara, Attorney at Law

About
Do you need to find a tax lawyer in your locality? Charles is a good choice. This individual offers federal tax filing services that will surely meet your needs.

32 years in business
Houston, TX 77084

2. Alimohammad & Zafar, PLLC

About
Settle your debts with the assistance of the taxation lawyers from this business. They also handle corporate and immigration cases.

5 years in business
Sugar Land, TX 77478

3. Hammond Law Group, PLLC

About
Hammond Law Group, PLLC is one of those trusted law firms that have professionals who will help resolve your tax situation. They do tax audit and litigation jobs.

Houston, TX 77007

4. Dr. Mathai Mathew

About
If you need to find a tax attorney in Houston, this professional is the right choice. This individual also handles immigration cases.

Houston, TX 77014

5. Anderson Bradshaw Tax Consultants, Inc.

About
Leave these tax lawyers in charge of your settlements. They offer reliable tax preparation and auditing services with free consultations.

Houston, TX 77056

6. AcctTaxLaw

About
On the lookout for someone who offers tax preparation services? Check out this pro. This individual is always available for your needs.

Houston, TX 77084

7. Kenneth C. Courville, Attorney

About
This professional is among the business tax lawyers in your area who provide dependable services. He also offers business planning and probate litigation solutions. Book him today.

Houston, TX 77007

source : thumbtack.com