A person who owes the IRS money can be subjected to some powerful forms of enforcement.
Denver, CO – The tax code at both the state and federal levels is complex and constantly changing. It is difficult for someone who is not a tax professional to invest the time and effort into learning all of these rules and filing their taxes properly. However, even honest mistakes on taxes can potentially have severe consequences, and people always need to be careful when filing. There are a few specific reasons why people should invest in the services of a tax lawyer.
Avoiding criminal charges
Depending on the severity of the mistake, omission, or misrepresentation on a person’s taxes, the IRS can choose to file criminal charges for tax fraud or evasion. Lawyers can either negotiate with the IRS on the person’s behalf to avoid the charges, or defend the person if they are actually charged with some kind of tax crime. The potential sentences for tax crimes can also be serious, especially if the person is dealing with large amounts of money.
Sorting non-taxable versus taxable income
There are some forms of income that are actually not taxed by the federal or state government. Things like child support and alimony usually fall into this category. However, finding these sources of income, identifying them, and then properly filing the tax return is not always a simple matter. A tax lawyer can help the person avoid paying too much by proper identification of non-taxable sources.
The IRS has powerful tools to get their money
A person who owes the IRS money can be subjected to some powerful forms of enforcement. This can include late fees and interest on the outstanding money, and they can also garnish wages and seize property to collect the outstanding amount when necessary. The amount of interest that is added to unpaid taxes can increase over time as well, and the person can end up paying much more than they initially owed.
Taxes for businesses
There are special rules that apply to businesses when paying taxes. In some cases, a business may not even owe the IRS much money or anything at all if their profit was small in the given year. However, there are also various types of taxes that apply to businesses but not individuals. A tax attorney can help the business get all of these issues right and avoid any kind of penalties or audits.
Getting to know more about tax law
Semler and Associates is a tax law firm that works with clients in the Denver area. Anyone who needs additional information about how a tax attorney can assist them should contact the firm to learn more.
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