Table of Contents
- 1 Hiring a Tax Attorney in Denver Before Tax Season
- 2 What Is A Tax Attorney?
- 3 Understanding Tax Policies
- 4 Let JM Tax Law Provide You With The Most Benefits Of Hiring A Tax Attorney In Denver
Hiring a Tax Attorney in Denver Before Tax Season
Tax season is upon us again, and you may ask yourself if there are benefits of hiring a tax attorney in Denver. This means filing returns, paying taxes, and dealing with any issues that arise along the way. While many try to handle things themselves, doing so can lead to severe consequences. For example, failing to pay your taxes can put you in danger of being audited by the Internal Revenue Service (IRS). If you owe money to the IRS, you might even be charged interest and fines.
As we know, there are many different types of taxes that individuals and businesses must pay every year. From payroll taxes to sales taxes to income taxes, it can become very confusing to figure out how much money you owe each quarter. This is where a tax attorney can help. A tax attorney specializes in assisting companies in navigating the complicated world of taxes. If you have trouble understanding what you need to do to file your taxes correctly, or if you need to resolve a dispute with the government over unpaid taxes, you’ll want to understand the benefits of hiring a tax attorney in Denver.
Additionally, you do not want to pay taxes to the IRS. After all, the government is taking money away from you. A tax lawyer can help you navigate the process of paying off your debts, including allowing you to avoid mistakes that could lead to additional charges.
What Is A Tax Attorney?
Tax attorneys are lawyers who specialize in federal and state income tax laws. A tax attorney must complete four years of college and three years of graduate-level coursework. After completing the requirements, they take the LSAT or the Law School Admission Test.
Once the state bar exam is completed, a tax attorney works for a law firm specializing in taxes. Their main objective is to help clients file returns correctly and understand how to minimize their tax liability. Below are some of the benefits of hiring a tax attorney in Denver.
Understanding Tax Policies
The tax laws are updated now, and it is almost difficult for ordinary citizens to know what exactly is happening. This is where the benefits of hiring a tax attorney in Denver come into play. They are well-versed in tax policies and update themselves on new tax laws. As such, they can help you understand the current situation and ensure you comply with the law.
Filing Tax Returns
Tax season is here again, and it’s time to start thinking about getting everything done. But how do you know where to turn? You don’t have to worry anymore because your tax lawyer is there to guide you every step of the way. An experienced tax attorney knows the required forms and when they’re due. They’ll also help you determine whether you need to file a return or amend one. And if you need to file a late return, your attorney can prepare the necessary documents to get an extension.
Protect Your Finances and Property
The Internal Revenue Service has several collection options to help people pay back what they owe. One of those options is a wage levy. This allows the IRS to take a portion of your income directly out of your paycheck. Another option is a bank account levy. These are often used against individuals who fail to file returns or pay tax liabilities. However, there are several exceptions to both levies. For example, if you don’t have access to your bank accounts or if you can prove that it isn’t possible to pay off the debt, you won’t be subject to either levy.
If you receive a Notice of Intent to Levy, you have 30 days to respond. You must provide information about how much you owe, whether you can afford to pay, and why you believe you shouldn’t be required to pay. The IRS will consider waiving interest charges if you can’t pay and agree to a payment plan. However, the IRS will begin seizing your wages or bank accounts if you miss payments.
In addition to the above, certain protections are afforded under federal law. For instance, if you lose your job, you cannot be forced to sell your house, car, or other personal property just because you have yet to pay your taxes. Additionally, the IRS cannot garnish Social Security benefits without court approval.
If you receive a letter saying that the IRS is auditing your return, it’s essential to act quickly. They are likely looking for errors on your tax return; however, sometimes audits happen because of mistakes someone else made. You might think you did nothing wrong, but if you make a mistake on your taxes, it could cause problems down the road. One of the benefits of hiring a tax attorney in Denver is to help navigate the process and communicate with the IRS, so you don’t end up paying penalties and interest.
It means you’re still in luck if you owe the IRS money. You can reduce the amount owed by filing an Offer in Compromise. However, there are some things you’ll want to know about before applying.
A penalty abatement allows taxpayers to pay less than what they owe while avoiding the payment of interest or late charges. To qualify for a penalty abatement, you must file Form 656, Penalty Abatement Request. This form outlines the information needed to request a penalty abatement. Once submitted, IRS employees review your case and decide whether to approve it.
In addition to filing an OIC, consider paying off your debt early.
Maintain Your Credit
The Internal Revenue Service (IRS) does not report your tax debts to the three major credit reporting agencies—Experian, Equifax, and TransUnion. However, you could face severe consequences if you fail or cannot pay your taxes. A Notice of Federal Tax Liens (NFTL) is filed against you by the IRS. If you do not resolve the issue within 30 days, it becomes a judgment against you. Once recorded, your debt will be reported to the three major credit bureaus—Experian, Equifax, and TransUnion. These reports will remain on your credit history for seven years.
If you enter into a payment arrangement or offer in compromise with your local IRS office, you may avoid having an NFTL placed against you. Sometimes, a lien can be removed early, allowing you to rebuild your credit history sooner. An experienced tax resolution lawyer may be able to negotiate with the IRS to release the lien.
Tax Fraud or Evasion
The IRS has been cracking down on people accused of tax evasion and fraud. In 2017 alone, it charged over 5,500 individuals and businesses with crimes related to failing to pay taxes. This number jumped dramatically from 2016, when there were just 2,700 cases filed. And while the majority of the charges involved failure to file tax forms, there were also some instances of tax fraud.
A lawyer is essential in these cases because they can help you avoid serious consequences. If you refuse to file your taxes, you could face jail time. You could lose your home if you fail to pay what you owe. And if you reveal all your sources of income, you could end up paying hundreds of thousands of dollars in fines.
In addition to the penalties mentioned above, there are also civil consequences. For example, if you don’t file your taxes by April 15th, you could be fined $50 per day. You might also be required to pay interest and penalties on the amount owed.
Protection From Litigation
Businesses are often sued because of negligence. Negligence occurs when someone fails to act reasonably under the circumstances. For example, a business owner could only correctly train employees about safety procedures or provide adequate security measures. Even though businesses do everything possible to avoid lawsuits, some still sue them. When this happens, it is called litigation.
Litigation is expensive and stressful. You might lose your business if you need to learn how to defend yourself. One study found that the average cost of defending against a lawsuit is $1 million. Fortunately, there are ways to protect your business from the litigation without spending too much money.
An experienced tax attorney can help you build strong defenses against negligence claims. They can even draft legal documents, such as insurance policies and employment agreements, to protect your business. Another benefit of hiring a tax attorney in Denver is we can advise you about what types of evidence are most likely to win a case and how to best prepare for trial.
Intermediary Working For You
When dealing with the Internal Revenue Service, many different types of lawyers can help you. Some work directly for you, while others represent clients whose cases intersect with yours. But no matter whom you choose, you want someone who can help you navigate the process, provide advice, and guide you through the steps needed to resolve your issues. Some people call themselves “intermediaries” because they act like middlemen between you and the IRS. They help you understand what’s happening, explain your options, and negotiate resolutions to your problems.
Your intermediary might be a solo practitioner, a small firm, or even a large law firm. And although they won’t necessarily be able to do everything for you, they can offer guidance, assistance, and representation throughout the process.
Let JM Tax Law Provide You With The Most Benefits Of Hiring A Tax Attorney In Denver
The IRS is cracking down on people who owe money to Uncle Sam. They threaten to garnish wages, sue you and even put liens on the property. If you pay up, it could save you everything. But there’s hope. You can still avoid foreclosure, wage garnishment, and bank levies. We’ve helped thousands of clients just like you escape the clutches of the IRS.
At JM Tax Law, we understand how overwhelming this process can be. That’s why we’re here to help. Our team of highly experienced attorneys is ready to take action on your behalf. So call us now at 720-833-7705!