Los Angeles IRS Tax Attorney
For many people, the mere mention of the Internal Revenue Service is stressful. There are many reasons for this type of perspective. Some may have personal issues with the U.S. Tax Code, fear the consequences of past tax mistakes, or simply don’t like to spend their hard-earned money on taxes. However, regardless of one’s reasons for disliking the IRS or paying taxes, one must satisfy their tax obligation. Los Angeles taxpayers that fail to engage and handle their income tax and other obligations can face significant fines and penalties. Taxpayers are never well-served by ignoring a tax debt or a tax problem. Failure to handle one’s taxes and tax problems in a timely manner typically results in ever-increasing penalties and fines.
The IRS Aggressively Pursues Non-Filers
Most citizens, legal permanent residents residing in LA, resident aliens and some other individuals have an obligation to file and pay income taxes to the U.S. government. Most individuals have this obligation because the amount of income one can earn before a filing obligation is triggered is relatively slight. A single person filing as a sole filer in 2014 can earn no more than $10,150 before he or she is obligated to file taxes by the April 15th tax deadline however it is suggested to consult with an experience Los Angeles IRS tax attorney to understand all requirements. Taxpayers who fail to file, make an incomplete or inaccurate filing, fail to check the box in Schedule B when they have offshore assets, or engage in other noncompliant tax acts face a significantly increased chance of facing an audit or other tax enforcement action.
While the penalties for inadvertent tax violations can be harsh, the penalties for willful violations – one’s intentional or voluntary disregard of a known legal duty – are even worse. Before engaging in a questionable tax practice or scheme consider that the willful failure to pay taxes can be punished under 26 USC Section 7203. Upon conviction, a taxpayer in this position can face a prison sentence of up to one year, fines and penalties, and responsibility for the costs of restitution. A taxpayer who attempts to interfere with the administration of the tax code can face a prison sentence of up to three years and other penalties as set forth by 26 USC Section 7212.
IRS Tax Attorneys Provide Audit Representation
If you fear that you have already engaged in questionable tax practices, fallen for an abusive tax promotion, or have otherwise increased your audit risk you are likely worried about receiving a notice from the IRS informing you of a deficiency and the need for additional information. And if you have already received such a notice from the IRS, there is no reason for panic. Working with an experienced Los Angeles IRS tax attorney can help you understand what the IRS is asking for so that you can satisfy their request without potentially making an unartful statement that causes the IRS agent to suspect willful conduct or additional tax problems. A tax professional can work with you to manage the situation such that the risk is managed and you are able to address the issue without exacerbating the situation.
The inexorable and steady expansion of FATCA through the implementation of international information sharing agreements means that the U.S. government now has a wealth of tax and financial data from foreign countries where American taxpayers may hold or control undisclosed accounts. In fact, more than 100 nations have signed agreements with the United States to implement FATCA. Furthermore, at the end of September 2015, the IRS completed its first automatic, reciprocal data swap with foreign jurisdictions. If you still have yet to disclose your offshore accounts and assets, the risk of detection has never been higher. While taxpayers can mitigate the consequences they face through entry into a voluntary disclosure program such as OVDP, taxpayers who continue to delay and come under investigation will be ineligible for these benefits. Therefore, further delay regarding one’s unsatisfied offshore disclosure obligations is never advisable.
Received a Letter from the IRS?
If you have received a communication from the IRS regarding a potential tax deficiency, you face the potential for significant penalties and other consequences. The experienced and dedicated LA tax professionals of the Tax Law Offices of David W. Klasing can advocate on your behalf and work to mitigate the tax situation you face. To schedule a reduced-rate consultation at our law offices, call 800-681-1295 today or contact us online.
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