Awards & Recognition
Some people may believe that they can catch-up on bills by underpaying their taxes. Others may make inadvertent errors because they misunderstood their filing obligations. In many instances these taxpayers justify their non-compliance by thinking that they are only a small fish in an ocean of taxpayers and do not need a California IRS lawyer to consult with. However no matter what motivated or caused your tax problems, the IRS has shown that it is willing and able to go after non-compliant taxpayers regardless of whether they are an individual taxpayer or a multinational financial institution.
If you are contacted by an IRS agent regarding alleged unfiled taxes, unpaid taxes, undisclosed foreign accounts or other tax problems, the agent is likely to act professionally. However, do not mistake common professional courtesy for friendship or consider the auditor or investigator to be on your side. The auditor or investigator works for the IRS and therefore their actions will not be in your best interest. Their goal is to collect evidence to support the case against you for, at best a civil tax assessment and at worst a criminal prosecution if you committed fraud.
Attorneys handle FBAR and foreign tax disclosure enforcement problems
Foreign Account Tax Compliance Act (FATCA), intergovernmental agreements (IGAs) between the U.S. and more than 100 foreign countries, and provisions in the Banking Secrecy Act (BSA) compelling foreign banks to turn over American’s account information only scratch the surface of reasons as to why most promises of banking secrecy in foreign jurisdictions can no longer be relied on. Continued reliance on traditional tax havens is likely to result in detection and severe civil or criminal penalties.
In brief, individuals under the jurisdiction of the IRS are required to disclose foreign accounts in which they have an interest in or signature authority over if the balance, or aggregate balance, exceeds $10,000 at any point during the tax year. Failure to file Foreign Bank Account Reporting (FBAR) or to make other disclosures as required by the BSA or Foreign Account Tax Compliance Act (FATCA) can result in severe civil and in appropriate circumstances, even criminal tax consequences. A non-willful violation can be punished by a penalty of $10,000 for each account and for each year the account or accounts went undisclosed. Willful violations of foreign account disclosure obligations occur when the failure to disclose is due to reckless indifference or when it is the product of a “voluntary, intentional violation of a known legal duty.” For willful violations, penalties can eclipse the total value of the undisclosed account. Additional civil and criminal penalties can also be imposed.
Attorneys work to minimize the consequences of California or IRS audits
You can be selected for a tax audit for a number of different reasons. However, the most common reasons include that a discrepancy was detected in the numbers you reported and the information the IRS gathered from third parties on you or that you that were selected for a routine, random audit. Regardless of the reasons for the tax audit, it can create serious problems and additional tax liability if it is not handled appropriately. The tax professionals of the Tax Law Office of David W. Klasing are experienced in handling audits at the state and federal levels. Our California IRS lawyers and CPAs can provide peace of mind and decrease the probability that your California or IRS tax audit will result in serious tax consequences. We are experience in nearly all common tax problems such as unpaid taxes, unfiled taxes or foreign accounts that were not disclosed and we are trained and experienced in advocating and negotiating on behalf of our clients.
Lawyers provide criminal tax defense
In some instances a California or IRS tax audit can uncover fraud. This can result in your matter being referred for criminal tax prosecution. Unknowingly admitting to a violation of the US Tax Code can be surprisingly easy. For instance, if you mistakenly failed to check the appropriate disclosure box on your 1040 Schedule B when holding certain foreign accounts and handle the situation poorly, the investigator may consider the incorrect return to be a willful filing of a false return. Filing a false return is a felony and can be punished by a prison sentence and a fine of $250,000, plus the cost of prosecution. Depending on the circumstances, the IRS may also or seek to impose the 75% penalty for civil fraud or the 20% penalty can be imposed for negligent income tax reporting.
California IRS Lawyers Stand-up to the IRS
In light of the severe civil and criminal penalties you could face, discovering that you are the target of an IRS audit or investigation can be an anxiety-inducing expense. However, living in fear and merely hoping that the IRS will go away will not solve your tax problems. Furthermore, delay in seeking representation and taking action may result in a less favorable result. To schedule a reduced rate consultation with an experienced California IRS lawyers and CPA , call The Tax Law Offices of David W. Klasing at (800) 681-1295, or contact us online today.
