Avoid Common Mistakes in Back Tax Filing for 2024

Avoid Common Mistakes in Back Tax Filing for 2024

Common Mistakes in Back Tax Filing and How to Avoid Them

Filing your taxes late is already a stressful experience, and the process of catching up on back taxes can feel overwhelming. However, this situation is often manageable if approached thoughtfully and methodically. As the tax deadline for 2024 has already passed, it’s important to understand common mistakes in back tax filing that can complicate your situation or increase your tax liability. Knowing what pitfalls to avoid can help ensure accurate and complete submissions, reduce penalties, and prevent further issues.

1. Failing to File at All One of the most common mistakes is not filing back tax returns due to fear or uncertainty. Many people assume that ignoring their tax obligations will make the problem disappear, but the reality is quite the opposite. If you have income that requires a tax return, not filing can lead to accumulating penalties, interest, and potential legal consequences. The IRS has programs to help delinquent taxpayers who voluntarily come forward, so it’s critical to take action.

How to Avoid This Mistake: Start by gathering your financial documents for each year you missed filing. If you’re uncertain about your filing requirements, consult a tax professional to determine the best way to proceed.

2. Incorrect Calculation of Income and Deductions Incorrectly calculating your income and deductions can lead to errors in your returns, causing underreporting or overreporting of taxable income. Such mistakes are often due to lost documents, failure to account for all income sources, or misunderstanding of applicable deductions.

How to Avoid This Mistake: Gather all relevant income statements (W-2s, 1099s, etc.) and keep a detailed record of your business income, investments, and other revenue sources. Consult a tax expert to identify potential deductions and ensure your calculations are accurate.

3. Overlooking State Tax Obligations Federal taxes may be the focus of your back tax filing efforts, but forgetting about your state taxes can lead to additional penalties and complications. State tax agencies can be even more aggressive in pursuing delinquent taxes than the IRS.

How to Avoid This Mistake: Understand the state-specific tax laws and deadlines that apply to you, especially if you’ve recently moved. Each state has unique rules and forms, so contacting your state’s tax agency or consulting a tax resolution expert can clarify your obligations.

4. Missing Filing Deadlines for Multiple Years It’s not uncommon for taxpayers who have multiple years of back taxes to file returns out of order or miss important deadlines for specific relief programs. The IRS and some states offer penalty abatement and special tax relief programs for those who file promptly, so missing these deadlines can be costly.

How to Avoid This Mistake: Prepare a clear filing plan by starting with the oldest returns first, then move to the more recent years. If you’re unsure about the order or deadlines, work with a tax resolution firm that can help you file strategically.

5. Filing Incomplete or Inaccurate Returns Incomplete returns with missing signatures, incorrect Social Security numbers, or other errors will delay processing and may lead to unnecessary penalties.

How to Avoid This Mistake: Double-check your returns for completeness and accuracy before submission. Tax professionals can assist with a comprehensive review to identify and correct any errors before filing.

6. Ignoring IRS Notices If you owe back taxes, the IRS will likely send notices to your last known address. Ignoring these notices can lead to enforcement actions like tax liens, levies, and wage garnishments.

How to Avoid This Mistake: Open and respond to every IRS notice promptly. If you’re unsure how to respond or what the notice means, consult a tax professional who can guide you through the process.

7. Not Setting Up Payment Plans Failing to pay your back tax debt in full can lead to accumulating penalties and interest. Some taxpayers don’t realize that they can work out manageable payment arrangements with the IRS.

How to Avoid This Mistake: Explore payment options with the IRS, such as an Installment Agreement or Offer in Compromise. Even if you can’t pay the entire amount due, partial payments will reduce your outstanding balance and minimize interest charges.

8. Attempting to Handle It Alone Filing back taxes without professional help can result in missed deductions, incorrect submissions, and higher penalties.

How to Avoid This Mistake: Seek assistance from tax resolution professionals who specialize in back taxes and can help you navigate the process efficiently.

How Finishline Tax Solutions Can Help Navigating back tax filing can be challenging, but it’s possible to address these issues with the right guidance. Finishline Tax Solutions offers comprehensive tax resolution services that can help you:

  • Organize your financial documents.
  • Calculate your total tax obligations accurately.
  • Resolve unpaid federal and state taxes.
  • Identify possible deductions and credits.
  • Negotiate with the IRS on your behalf.

We work with taxpayers who are years behind on filing or who have recently realized their oversight. Contact Finishline Tax Solutions for a consultation today, and let us help you get back on track.

Conclusion Filing back taxes requires careful attention to detail to avoid penalties and reduce tax liability. By understanding and avoiding common mistakes, you can navigate the process more smoothly and regain control of your finances. Whether you’re catching up for one year or many, professional tax resolution services can provide the support you need to resolve your back tax issues and move forward with confidence.

Navigating Tax Debt: Why Hiring a Tax Debt Attorney is Crucial for Finding Relief

Navigating Tax Debt: Why Hiring a Tax Debt Attorney is Crucial for Finding Relief

Are you struggling with tax debt and feeling overwhelmed by the complexities of the tax system? You’re not alone. Many individuals and businesses find themselves in this situation and may not know where to turn for help. That’s where a tax debt attorney comes in. Hiring an experienced attorney who specializes in tax debt relief can be crucial in navigating the complicated world of tax law and finding relief from your debt.

In this article, we’ll explore why it’s important to hire a tax debt attorney, how they can help you find relief, and what to look for when selecting an attorney to represent you. Whether you’re dealing with IRS notices, wage garnishments, or liens on your property, a tax debt attorney can provide the guidance and expertise you need to get your finances back on track. So, let’s dive in and explore why hiring a tax debt attorney is crucial for finding relief.

Understanding tax debt and the consequences of not addressing it

Tax debt can be a significant burden for individuals and businesses alike. It can arise from a variety of sources, including failure to file tax returns, underreporting income, or claiming incorrect deductions. If left unaddressed, tax debt can quickly spiral out of control, leading to serious consequences such as wage garnishments, property liens, and even legal action. It’s essential to understand the scope of your tax debt and the potential consequences of not addressing it. The first step in resolving tax debt is to determine how much you owe. This can be a daunting task, especially if you’ve fallen behind on multiple years of tax returns. However, it’s essential to take a comprehensive approach and gather all necessary documentation to accurately assess your tax liability. Once you have a clear understanding of your debt, you can begin to explore your options for relief.

What is a tax debt attorney and how can they help?

A tax debt attorney is a legal professional who specializes in helping individuals and businesses resolve tax debt issues. They have in-depth knowledge of tax law and can provide guidance and representation throughout the debt relief process. A tax debt attorney can help you navigate the complicated world of tax law, communicate with the IRS on your behalf, and develop a customized plan to address your specific tax debt issues. One of the primary benefits of hiring a tax debt attorney is their ability to provide legal representation in the event of legal action by the IRS or other tax agencies. They can negotiate with the IRS to reduce your tax liability, remove penalties and interest, and develop an affordable payment plan. Additionally, a tax debt attorney can help you navigate complex tax codes, identify potential deductions, and minimize your tax liability.

The benefits of hiring a tax debt attorney

Hiring a tax debt attorney offers numerous benefits for individuals and businesses struggling with tax debt. Here are a few of the most significant advantages:

Legal representation

Tax debt can quickly escalate to legal action by the IRS or other tax agencies. Hiring a tax debt attorney offers the peace of mind of knowing that you have legal representation if legal action becomes necessary.

Expertise and guidance

Tax debt attorneys have in-depth knowledge of tax law and can provide guidance and advice throughout the debt relief process. They can help you understand your options for relief and develop a customized plan to address your specific tax debt issues.

Communication with the IRS

Dealing with the IRS can be intimidating and overwhelming. A tax debt attorney can communicate with the IRS on your behalf and ensure that your rights are protected throughout the process.

Reduced tax liability

One of the primary goals of a tax debt attorney is to reduce your tax liability. They can negotiate with the IRS to reduce penalties and interest and develop an affordable payment plan that meets your needs.

Minimized risk

Working with a tax debt attorney minimizes the risk of making mistakes that could lead to further tax debt issues. They can help you navigate complex tax codes and identify potential deductions, minimizing your tax liability and reducing the risk of future tax debt.

How to find the right tax debt attorney for your needs

Finding the right tax debt attorney is essential to ensuring that you receive the guidance and representation you need to address your tax debt issues. Here are a few tips for finding the right attorney for your needs:

Look for experience

Tax debt issues can be complex and require in-depth knowledge of tax law. Look for an attorney with experience in tax debt relief and a track record of success in helping clients resolve tax debt issues.

Check credentials

Make sure that the attorney you choose is licensed to practice law in your state and has the necessary credentials and certifications to represent you in tax debt relief cases.

Read reviews

Check online reviews and testimonials from previous clients to get a sense of the attorney’s reputation and success rate in resolving tax debt issues.

Schedule a consultation

Schedule a consultation with potential attorneys to discuss your tax debt issues and get a sense of their approach and expertise.

The process of working with a tax debt attorney

Working with a tax debt attorney typically involves several steps, including:

Assessment

The attorney will assess your tax debt issues and determine the best course of action for resolving them.

Communication with the IRS

The attorney will communicate with the IRS on your behalf and negotiate a resolution to your tax debt issues.

Customized plan

The attorney will develop a customized plan to address your specific tax debt issues, including negotiating a reduced tax liability and developing an affordable payment plan.

Legal representation

If legal action becomes necessary, the attorney will provide legal representation and ensure that your rights are protected throughout the process.

Common tax debt relief options and how a tax debt attorney can help you navigate them

There are several common tax debt relief options that a tax debt attorney can help you navigate, including:

Offer in compromise

An offer in compromise is a settlement agreement with the IRS to pay less than the full amount of tax debt owed. A tax debt attorney can negotiate with the IRS on your behalf to develop an offer in compromise that meets your needs.

Installment agreement

An installment agreement allows you to pay off your tax debt in monthly installments over an extended period. A tax debt attorney can negotiate an installment agreement that is affordable and meets your needs.

Currently not collectible

If you are unable to pay your tax debt due to financial hardship, a tax debt attorney can negotiate with the IRS to temporarily suspend collection efforts.

Bankruptcy

In some cases, bankruptcy may be an option for resolving tax debt issues. A tax debt attorney can provide guidance and representation throughout the bankruptcy process.

What to expect during the tax debt relief process

The tax debt relief process can be lengthy and complex, but working with a tax debt attorney can help streamline the process and ensure a successful outcome. Here’s what to expect during the tax debt relief process:

Assessment

The attorney will assess your tax debt issues and determine the best course of action for resolving them.

Communication with the IRS

The attorney will communicate with the IRS on your behalf and negotiate a resolution to your tax debt issues.

Customized plan

The attorney will develop a customized plan to address your specific tax debt issues, including negotiating a reduced tax liability and developing an affordable payment plan.

Implementation

Once a plan has been developed, the attorney will work with you to implement it, ensuring that all necessary paperwork is filed and deadlines are met.

Ongoing support

A tax debt attorney can provide ongoing support throughout the tax debt relief process, ensuring that your rights are protected and that you are on track to achieving a successful outcome.

Tips for avoiding tax debt in the future

While working with a tax debt attorney can help resolve existing tax debt issues, it’s essential to take steps to avoid tax debt in the future. Here are a few tips for avoiding tax debt:

Stay organized

Keeping accurate records of your income and expenses can help you stay on top of your tax obligations and avoid tax debt.

File on time

Filing your tax returns on time can help you avoid penalties and interest that can quickly escalate your tax debt.

Seek professional help

Working with a tax professional, such as an accountant or tax preparer, can help ensure that you are meeting your tax obligations and avoiding tax debt.

Conclusion: Why hiring a tax debt attorney is crucial for finding relief and taking control of your financial future.

Tax debt can be a significant burden for individuals and businesses, but working with a tax debt attorney can provide the guidance and expertise you need to find relief and take control of your financial future. From negotiating a reduced tax liability to developing an affordable payment plan, a tax debt attorney can help you navigate the complicated world of tax law and achieve a successful outcome. So if you’re struggling with tax debt, don’t wait – contact a tax debt attorney today to start finding relief.

At Finishline Tax Solutions, our team of debt relief attorneys have helps thousands of individuals find relief and take control of their financial future. Contact us today for a consultation

Benefits of Working with a Tax Debt Attorney

Trying to resolve a tax issue with the IRS can require a level of skill that you may not have. Owing tax to the federal tax administrator is not a joke, as you can potentially face penalties for any outstanding tax liabilities you have.

The Internal Revenue Code has many complex rules that can be hard to follow when trying to resolve a tax issue. Our tax debt attorney at FinishLine Tax Solutions can assist you in settling what you owe the government. Some of the common benefits of working with our lawyers include the following:

Tax Code Knowledge

The tax laws on state and federal levels are always changing. Rather than living in despair, our lawyers can research and apply the laws that affect your tax problem.

Protection from Intimidation

Some IRS agents may be unprofessional and might even use intimidating tactics on you. Our tax dent lawyers can act as a representative for your case to protect you against abuse.

Peace Of Mind

The bureaucracy that comes from dealing with a government agency can be overwhelming. Instead of needing to go at it alone, we can help you get your affairs in order.

Can I Settle IRS Tax Debt Myself or Work With a Tax Debt Attorney?

If you owe the IRS taxes, there are multiple ways you can settle your tax obligations to the federal agency. One of these ways is to settle your debts directly with the agency. We recommend getting assistance from a lawyer familiar with the payment processes to negotiate a suitable payment plan for you.

When Should I Hire a Tax Debt Attorney?

While you can solve most problems without a lawyer, it is advisable to get the services of a tax debt attorney if you have a complex tax situation. Owing a significant sum to the IRS or facing legal charges will require you to get the services of an attorney. Some of the other common reasons to hire a tax attorney can include the following:

  • You have a large estate and want it to be passed to your loved ones without the IRS taking a large portion of it as taxes.
  • Disputing a tax billing by the IRS and avoiding one in the future.
  • Making a big business decision or investment.
  • If you have past unfilled taxes and errors amounting to an overwhelming debt.

How to Settle the IRS Tax Debt?

Owing the IRS is not a good idea as the government will eventually catch on and slap you with an enormous bill plus interests. Fortunately, the IRS often deals with those who can show they were not trying to cheat the government. The IRS offers the following payment plans to settle your debts:

Offer in Compromise

This is one of the most popular methods of settling tax debts as you can pay the IRS a reduction than what you owe in taxes. To qualify for the payment plan, you have to prove to the IRS that you are not in a position to pay the full debt amount. If the agency accepts the compromise agreement, you will have two years to settle your debts in full or in installments.

Filing For Bankruptcy

Banking can help you eliminate all your tax debt without paying them, but it can hurt your credit score. To be eligible for a financial lifeline, your finances must be examined through the bankruptcy codes of Chapters 7 and 13.  

Currently Not Collectable

This is a temporary state that the IRS will allow if you can prove that you are not in a position to pay your taxes. You show that your previous tax payment made you suffer significant hardship to be eligible.

Installment Plan

Similar to a home mortgage payment plan, this method allows you to pay the IRS every month what you owe in your dent. The IRS will develop a formula to generate a monthly figure you must pay.

Contact a Tax Debt Attorney Today

We believe you can achieve as much value on your tax debt problem though working on our firm’s model. Our attorneys will review all available payment plans and strategize what works better for you. Contact us today for a case evaluation and tax legal advice.

Tax Attorneys: 10 Things To Look out before you Hire one

Tax Attorneys: 10 Things To Look out before you Hire one

If you are in tax debt and are looking for a way to reduce the burden, a professional tax attorney can help you. But hiring a tax relief service is not as easy as it looks. It is a very crucial decision and you should take every care to ensure you choose the right one providing legitimate services. 

 

Here are a few tips that can help you easily weed out the scam artists. In this article, we will be discussing how you can evaluate and hire a legitimate and competent tax attorney for helping you fix your tax issues. Remember, this is an important decision that will affect the next 10 years of your life, financially and emotionally. So, read the below-mentioned tips very carefully and then make the right decision.

 

Tips To Choose The Right Tax Attorney Services

 

1. The Offer in Compromise (OIC)

 

Tax attorneys who make promises of erasing your liability, reducing the owed amount, and guaranteeing a settlement through OIC must be avoided. You need a lot of tax compared to your income and assets before you can even make an offer. The IRS is very strict about this policy and doesn’t give out OIC easily. So, don’t fall into the trap of false promises and hire one who sounds genuine and has a proven track record.

 2. Penalties and Interest

 

If an attorney is telling you that as soon as you hire him, your interest and penalties will stop, you have to walk the other way. Your interest will continue to accrue as long as there’s debt. Penalties are imposed when you fail to pay or file your taxes. You cannot just hire a tax relief service and expect all your penalties to go away.

 3. Licensed professionals

 

All legitimate tax attorney services are required to have licensed attorneys, CPAs, or Enrolled Agents who can act as your Power of Attorney. So, broadcasting about how they licensed employees on staff must not be considered as a major selling point as they are legally required to do so. That being said, not all licensed tax practitioners are equal. 

Another important factor to take into consideration is who will be handling your case during the consultation and proposal phase. There are many tax relief services that don’t get licensed tax attorneys to handle this.

4. Proposal

 

You might even come across tax attorneys who are too eager to sign a power of attorney or a work agreement and get the money before you even had the opportunity to research about them. Chances are, they are hiding something. It doesn’t matter how complicated your situation, you can take out a day or two for due diligence. Apart from this, when you receive a contract or proposal, make sure that they have included personal licensure evidence. A small amount of research now can save you from untold frustrations and thousands of dollars.

5. Evidence

 

You can use the Better Business Bureau complaints as a filter to weed out average or bad tax attorney services. The BBB tracks and reports the complaints that come from verified customers. On the basis of this, they give subjective grades of A+, B+, or A-. But this grade is not of much help because the BBB grades the companies on the basis of testimonials and complaints submitted by the customers. 

 

Suppose a firm has an A rating as they handled 2,000 cases in a year and had 30 to 40 verified customer complaints. This is a major red flag. That is why you need to check the complaints and not the grade.

6. Internet sources

 

Be very careful before hiring a tax attorney and don’t get carried away with everything you read on the internet.  Be careful of the sources you are referring to take the information from the internet. Don’t jump to any conclusion before you are completely sure about the tax attorney services.

7. Promises

 

The bigger the promise a tax relief service is making, the more skeptical you need to be. In fact, if the firm says ‘No’ when you ask for guaranteed results of reducing your tax debt significantly, it is a sign of ethics, honesty, and knowledge. Such firms will spend a lot of time explaining the exact reason why you are not qualified for a reduced settlement. Just remember that if the tax attorneys are making a promise that is too good to be true, go the other way.

8. Flat fee

 

This is a major point to look out for. Tax relief services that claim to have a flat fee are a red flag. In most cases, they won’t have a flat fee as this is not a viable business model. They make this promise only to get you on the hook. This is why you have to carefully read the work agreement. You will notice that the contract has a few lines detailing how the company can ask you for more money. In case of additional, you might need to pay more than the initial, fixed amount.

9. Ethics and Character

 

This is simple. Tax attorney firms that are involved in the community services display a true character. When they work closely with charities, do pro-bono work, and perform other acts of ethical behavior, it indicates that the firm is ethical. Another aspect of checking ethics is when tax relief services imply that they get preferential treatment from the IRS or have a special relationship with the IRS officials. Not only are they lying, but they are violating the US Department of Treasury circular 230. This circular includes the legalities associated with practicing before the IRS, including strategies of marketing. If the company is willing to break the law for earning your business, their moral compass and ethical standards definitely come into question.

10. Experience

 

Many tax attorney firms misrepresent the years of experience. Now, more years does not mean good work as 10 people won’t be working on your case. You will get only 1 or 2. To know about how long a company has been around, you can check them up on the official website of BBB. To know the exact date, you can check the Secretary of State website of the firm’s location.

 

Now that you are aware of these factors, you are way ahead. With just a little bit of research, you can weed out average tax attorneys  and find the one that suits your need the best. A conversation or two can help in knowing which company stands above the rest. The time you invest now will ensure that your financial situation is in good hands.

 

Talk to a Professional Today

What Can A Tax Attorney Do For Me?

If you’re in legal trouble, a tax attorney can be incredibly helpful. However, a tax attorney can also help you with paying off tax debt. There are many benefits to hiring a tax attorney. However, you might be wondering when the right time is to hire a tax lawyer. Similarly, you may be wondering what a tax attorney can actually do for you. The truth is, tax issues can cause a lot more trouble than you realize. Therefore, it’s important to handle them very carefully. In other words, even the slightest mistake when dealing with tax issues can cause you a lot of financial harm. Likewise, not having a tax attorney can cost you money, time and may even land you in jail. Dealing with tax laws can be time-consuming and confusing for the average taxpayer. Furthermore, tax laws are super complex. Hiring a tax attorney is your best move.

When should I Hire A Tax Attorney?

There are some situations when you should definitely hire an attorney. Alternatively, you may just want legal advice from a tax attorney. Furthermore, legal advice can be good to get when you’re starting up a business. However, there are some times when it’s absolutely necessary to hire an attorney. Here are some cases in which hiring an attorney is your best decision. Once you’re ready, call the experts at Platinum tax Defenders for more information.

Tax Attorney For Audits

There are some audits are just routine procedure for the IRS. In other words, the IRS just sends you a letter asking for more information. Furthermore, the IRS may ask you to provide documents that support tax credits or deductions you claimed. If you aren’t comfortable responding to the IRS’ request, you should hire a tax attorney. Furthermore, if you already went through an audit and disagree with the outcome, hire an attorney. If you want to appeal a decision, you may have legal representation. Furthermore, if you owe the IRS an attorney can help you negotiate a settlement.

Negotiating a Settlement During an Audit

An attorney can represent you in court, or help you negotiate a settlement with the IRS. In other words, you can often settle your debt for less with a tax attorney. Furthermore, there are several main ways to negotiate your tax debt settlement after an audit.

  • First, you can apply for an Offer in Compromise. In other words, an attorney can negotiate a deal so you pay less taxes than you owe. However, filing for an Offer in Compromise is difficult. It’s best to work with a tax attorney.
  • Second, you can apply for penalty abatement. This tax relief option will reduce the amount of late penalties you owe. Furthermore, this option will reduce your overall tax debt.
  • Third, you can enter into an Installment Agreement. In other words, you work out a deal to pay back tax debt in monthly payments.

Hire a Tax Attorney if the IRS Pursues Criminal Charges

If you are at risk of going to jail, hire an attorney immediately. Furthermore, you do not want to handle potential criminal charges on your own. In other words, the IRS doesn’t pursue criminal action over small mistakes. Therefore, if you’re at risk of criminal charges, it’s because you did something serious. Likewise, the IRS reserves criminal charges for people who fully evade their taxes. You may be at risk of criminal charges if:

  • You chose not to file your tax returns
  • Hiding taxable income
  • Claiming fraudulent tax deductions or credits

Never ignore notices from the IRS. Furthermore, if the IRS is sending you notices and you ignore them, hire a tax attorney. In other words, you won’t be able to avoid the IRS for long without a tax lawyer. However, an attorney can help you reduce your penalty and keep you out of prison.

An Attorney Works With the IRS On Your Behalf

If you’re afraid to deal directly with the IRS, don’t worry, you aren’t alone. In other words, many U.S. taxpayers find the IRS to be a very threatening agency. However, you don’t have to worry about dealing with the IRS on your own. An attorney can help you by communicating directly with the IRS on your behalf.  Furthermore, if you don’t understand the notices from the IRS, consult with a tax lawyer. In other words, before you choose to ignore the IRS, consult with an attorney first. Hiring an attorney can go a long way in keeping your money in your pocket. Furthermore, hiring an attorney can even help keep you out of jail.

Tax Attorneys for Businesses

You don’t always just need a tax attorney when you’re in trouble. In other words, a tax lawyer can help you in a variety of other situations. For instance, if you’re starting a business, it’s smart to consult with an attorney. Furthermore, if you’re selling a business, you should consult with a tax attorney. A tax attorney can help you determine which type of business you should set up as. Furthermore, a tax attorney can help if you’re running an international business. In this case, a tax attorney can help with:

  • Tracking and reporting income
  • Contract negotiations
  • Any other tax matter you may encounter while doing business

International business can be tricky when it comes to taxes. Therefore, working with a tax attorney can help you avoid any future tax trouble.

Tax Attorneys for Inheritance

If you plan to leave money for loved ones, hire an attorney. In other words, you don’t want to leave your loved ones with a big tax debt because of their inheritance. Most U.S. taxpayers will not have to worry about estate taxes. However, it doesn’t mean consulting with an attorney isn’t a good idea. Many tax lawyers specialize in mapping out estate-planning strategies. In other words, these strategies can help you protect your assets and keep them below the current value threshold. Looking for real estate attorney in Brooklyn then should visit jwagnerlegal.com.

Do you owe a large tax debt?

If you owe back taxes to the state or federal government, a tax attorney can be helpful. In other words, sometimes it’s not as easy as simply paying off your debt. However, if you can pay off your debt, that’s the easiest way to get out of tax trouble. Alternatively, your situation gets complicated when you owe more than you can pay. In other words, the best way to solve significant tax debt is hire a professional tax lawyer. A tax attorney knows how to deal with the IRS. Similarly, a tax attorney can help you negotiate an agreement to make paying your debt easier. Your tax lawyer will work with the IRS to set up a more manageable way to pay off your debt. In other words, they can help you set up an payment plan or negotiate an Offer in Compromise.

Getting Help from a Tax Attorney

The knowledge a tax lawyer brings is invaluable. An experienced tax attorney knows how the IRS works in and out. Furthermore, a tax attorney can save you money at the end of the day. They have the experience to lower the full amount of tax you owe. In other words, they can help you lower interest and penalties that you may also owe. A tax relief lawyer’s experience regarding how the IRS operates can be invaluable.

 

Why Hire a Tax Attorney During A Global Pandemic

Why Hire a Tax Attorney During A Global Pandemic

As so many tax laws are changing during the COVID-19 crisis, help from a tax attorney can be beneficial. In other words, you might have tax-related questions that a tax debt attorney can help with. Fortunately, the IRS has created a number of new measures to help taxpayers during the crisis. Unfortunately, these new tax laws and measures can be hard for the typical taxpayer to understand. However, the tax attorneys at FinishLine Tax Solutions are here to help with any COVID-19-related tax needs. But, how can a tax attorney help with COVID-19 related tax issues? In this blog, we’ll help you understand how and when you should consider hiring a tax attorney. 

Do I Need A Tax Attorney To File Taxes?

If you need to file taxes, a tax attorney or accountant at FinishLine Tax Solutions can help. However, accountants are typically more involved in the financial side of your taxes. In contrast, a tax debt lawyer can help with the legal side of your taxes. Depending on the result of your taxes, a tax attorney can be a lot of help. For instance, if you find out you owe more than you can pay, a tax attorney can help. During the COVID-19 crisis, the federal government is offering different tax relief programs to taxpayers. While it can be hard to stay up to date with all the new rules, we can help. We employ tax attorneys and accountants that can help you file taxes. Even though the filing deadline has been extended, we encourage you to file sooner rather than later.

How Can A Tax Attorney Help Me?

A tax attorney can help you if your tax situation needs legal help. For example, if you are under an IRS audit, a tax attorney can represent you. Furthermore, if you own property overseas, a tax attorney can help you. In other words, there are certain exemptions you can take advantage of depending on your tax situation. The average taxpayer may not be aware of the different exemptions available. Therefore, working with a tax attorney can often get you the most out of your taxes. Furthermore, the world of taxes is going to be a different thing once the COVID-19 pandemic is over. You’ll want a tax attorney’s help to see if you qualify for any relief resulting from the pandemic. Here are some other instances where a tax attorney may be helpful.

Taxes When Buying or Selling a Business

If you are buying or selling a business, help from a tax attorney can be beneficial. You will want a tax allocation that maximizes capital gain if you’re selling a business. But, if you’re buying a business, you’ll want a different tax allocation. In other words, when buying a business you’ll want to recover the purchase price faster through depreciation. Setting a business up tax-wise can be complicated for the average taxpayer. Fortunately, this is an area of taxes that many tax attorneys have experience in. The professional tax attorneys at FinishLine Tax Solutions have helped many individuals buy and sell businesses. If you’re in the middle of buying or selling a business, contact an attorney.

Taxes to Set Up A Business

The tax attorneys at FinishLine Tax Solutions have tons of experience helping business owners set up their companies. Starting a business can be complicated for taxes. Fortunately, FinishLine Tax Solutions specializes in businesses. Our tax attorneys can help you anticipate potential tax incomes. In other words, your tax incomes will differ depending on how you set your business up. For instance, an LLC is treated differently for taxes than an S-Corp or C-Corp. This level of complexity is often outside of a normal taxpayers’ experience. Therefore, the tax attorneys at FinishLine Tax Solutions can help. Our tax attorneys can also help you with setting up your business type. For instance, you will have to choose between an LLC, S-Corp, or C-corp. We can help you go over the pros and cons of each business type. Furthermore, we can help you understand how each business type can impact taxes.

Taxes when Leaving Money or Property to Heirs

A tax attorney can also help when you’re leaving money for family members in your will. Additionally, a tax attorney can help if you have a property you want to leave to family in your will. Some tax attorneys also specialize in estate planning, which will be especially helpful here. If you’re leaving over $11 million, you will need to file an estate tax return. This can be especially difficult to understand if you’ve never filed one before. Therefore, seeking the help of an experienced tax attorney can save you a lot of time. Furthermore, if you don’t have $11 million, it can still be a good idea to consult a professional.

Been Accused by the IRS? Hire A Tax Attorney

You also want to hire an attorney if you’ve been accused of doing something wrong. For example, these may be some potential scenarios when you want to hire an attorney.

  • If you are under an IRS audit. But don’t worry, an IRS audit doesn’t always mean you’ve done something wrong. However, it is an investigation into your financials by the IRS. In other words, the tax audit should be taken very seriously.
  • Additionally, you may want to appeal your IRS audit if you are under one. In that case, a tax attorney can also be very helpful. Moreover, an attorney can be extremely helpful if you are being taken to court over your audit.

Owe Back Taxes To The IRS? Hire A Tax Attorney

In some cases, you can handle paying and filing back taxes on your own. This is especially true if you have the funds to settle your tax debt. However, if you owe a significant amount of money, hire an attorney.  The federal government has put in place a number of tax relief measures for taxpayers. In other words, if you’re worried about paying back taxes during the COVID-19 pandemic, hire an attorney. Our attorneys specialize in all kinds of tax laws and are here to help. If you find yourself in a stressful financial situation due to taxes, get help. Hiring an attorney can mean the difference between financial debt and financial freedom.

If you need to hire a tax attorney, call the professionals at FinishLine Tax Solutions today. We offer free consultations to new customers.