What Are Common Reasons That People Or Businesses Have Tax Issues?
A business issue we often see is when businesses start taking small deductions that they might not be eligible for. They make tiny changes to their reporting. It starts to get bigger and bigger, and those businesses start to do more and more that they shouldn’t be doing. The truth is, 99% of people and businesses don’t get audited. The big guys are the ones who get caught. While you can enjoy the delicious fruits of questionable tax practices, eventually you are going to get greedy and the IRS or the Florida Department of Revenue is going to come after you.
Another large client issue that we deal with is divorced spouses who were previously filing joint tax returns but now, might qualify for injured spouse protection. While they believed that they were signing truthfully off on a joint tax return, perhaps the other spouse was hiding income or underreporting income. Even after a divorce, you are left with that other person’s tax liability and that can cause a lot of problems.
However, probably the most common thing we see are IRS Payroll Trust Fund Penalty cases. Because of the broad definition of responsibility for payroll trust fund violations, many people and businesses can get caught up in the IRS fallout when a problem is found. It is especially important to contact someone quickly with payroll trust violations, as the penalties for these can be extreme.
What Are the Common Ways That Tax Debt Can Be Resolved with The Help of An Attorney?
There are a lot of different ways you can resolve tax debt. Typically, it involves going the settlement route. If you are looking to resolve tax debt, and not going through other debt that you can resolve through bankruptcy, you will have to go with an offer in compromise. An offer in compromise is submitting a settlement offer to the Internal Revenue Service to settle all of your tax debt. It can comprise of either a payment plan or a lump sum settlement. When you make that offer, you also have to submit a 20% payment towards whatever the offer is. If the IRS decides that they are going to reject that offer, they get to keep that 20% and apply it to your tax debt.
There is one main thing the IRS looks at in determining whether or not to take an offer in compromise: your collectability. If the IRS thinks they are able to collect money from you and think they are going to be able to do it quickly and easily, they are not going to accept any offer in compromise from you. If, however, the IRS believes that you don’t have any money and they are going to have a large amount of difficulty collecting from you, it’s much more likely that they are willing to negotiate.
If, on the other hand, you don’t know for a fact that there is a debt and you are able to argue whether or not you owe it in the first place, then there are a lot of other arguments that can be made to try and reduce your overall tax burden. Once the tax debt has been affirmed and the amount of tax owed is known, settlement is the only option you have, other than bankruptcy, towards settling debt with the Internal Revenue Service.
For more information on Reasons For Tax Issues In Florida, a free consultation is your next best step. Get the information and legal answers you are seeking by calling (954) 546-7755 today.
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