Tag: Tax law attorney

It seems that everyone who files their federal tax return runs into some form of IRS audit. In fact, it is so common that we actually have a term for what IRS auditors usually do-they audit their own tax return. For the tax filer, according to tax lawyer New Jersey, this can be very scary and frustrating. In most cases, a tax auditor will ask questions about why you made certain decisions with your tax return and look for any evidence that will help them determine if you committed tax fraud or a tax violation.

Do Not Call IRS. When you receive a notice from the IRS that your tax due is being audited, it is important that you do not call IRS immediately. First, the IRS will give you a notice explaining that they are auditing the tax due based on certain tax law matters. Second, most tax law experts (and most tax attorneys) strongly recommend not contacting IRS in advance of an audit. Most tax law experts will advise that you wait until after an audit has been conducted in order to determine if you owe additional tax liability or not.

 

Contact Your Tax Lawyer. If you feel that you are likely to need the services of tax attorneys during your IRS audit, then you should definitely contact tax law firms and agents that specialize in representing tax payers. Taxpayers often hire tax law attorneys in order to gain advice regarding the tax issues that they face with their tax return. Hiring tax law experts allows you to gain objective advice from tax attorneys who are experienced in tax law matters and have knowledge of IRS regulations and laws.

 

Do Not Make a Counterpleasure to Avoid an Audit. One of the ways that tax attorneys and other tax experts typically advise clients not to communicate with the IRS is to not do anything to try to prepare for an audit. Most of us tend to become overly familiar and prepared for an audit. We begin to think in terms of strategies and defensive procedures in order to best prepare for such an audit. Although communication is required between you and the IRS, you should not make it worse by preparing for another audit.

 

Do Not Ignore Your Personal Records. According to Virginia tax attorney, you should be very careful not to destroy your personal records even if you feel that you are being audited. Auditors (in most cases) are only looking for proof of income or tax liability. In some tax law issues, the person being audited may also be looking for proof of criminal behavior which is perfectly legal according to the tax codes.

 

Most tax audit lawyers and tax law professionals will tell you to turn over all documents that are relevant to the audit request to minimize the time it takes for the audit to be completed. It is also important to cooperate with the IRS agents, so as to give them a better idea of what tax liability you may be facing. IRS agents have a legal mandate to collect all evidence they can from you. If cooperation does not solve the problem, then you may need to hire additional help from tax audit attorney and/or tax law firm.

 

The recent global financial crisis has resulted in tax fraud and tax evasion becoming a more common problem. Many tax cheats have found that it is now far easier to dodge the Internal Revenue Service than ever before, said tax lawyer Tennessee. In some cases, illegal tax evasion strategies have been used to gain unfair advantages over financially strapped banks and other creditors. Because of the huge number of tax cheats that end up in jail, it is essential for everyone to be aware of how to stay out of legal trouble. One of the best ways to avoid being accused of tax fraud or tax evasion is by hiring a tax law attorney.

 

In United States, there are many banks that have come under fire from the federal government and the media because of their lax lending policies. Banks were given ample time to prepare and report tax statements that would make sure they did not violate any of the laws that have been enacted to protect the financial system. If the banks had not done these things, the resulting fallout could have been much greater. Instead of a few people having to suffer, several thousand would have fallen victim to tax fraud and evasion.

 

There are many ways that banks can commit tax fraud and evade the full extent of the law. For example, if a bank allows a low minimum deposit amount that a person needs to open a checking account with in order to receive a debit card, that money is never reported to the IRS. The bank skips out on its responsibilities to the Internal Revenue Service by not reporting the missing funds. This allows the person who receives the card to incur credit card debt, interest, and penalties without paying the appropriate taxes.

 

A similar scenario might be an employee who does not follow through with reporting his or her earnings from working off-site for the company. The bank will report the employee’s earnings, but the amounts may be small. After tax season, the justice department can file a tax fraud lawsuit against the employer. Even though the employee did not report the income, the bank uses the lack of declaration as an excuse to deny payment. The case ultimately ends up being transferred to the government because the bank’s refusal to acknowledge it was a crime makes them liable for criminal charges.

 

Many banks use corporate clients as part of their efforts to avoid tax evasion liability. To encourage proper tax reporting by corporate clients, the Internal Revenue Service enforces complex tax laws. In addition, companies have to regularly update and track all tax filings. Failure to comply can result in severe penalties.

 

Tax fraud costs different amounts. It costs a bank twenty-five thousand Euros to avoid paying taxes. A company with one hundred employees pays a million Euros to the tax office. For the bank, the cost is less than two percent of its annual revenue. A group that has a few thousand members, however, pays hundreds of thousands of Euros to the bank to avoid tax evasion.

No matter how large or small the company, tax evasion hurts the bank. The fines that companies pay do not make up the millions of Euros that banks lose because of tax evasion. Even the fines that companies pay to the government don’t make up the six million Euros that banks lose because of tax fraud. The maximum fine that a bank will be forced to pay is three million Euros, but even that might be an overkill if the tax evasion has cost them ten million Euros or more. Click here to learn more about taxes.