You may think that if you pay your taxes on time and complete them to the best of your knowledge, that you won’t have any trouble with the IRS. However, there are several situations that could lead to tax trouble and the need for a talented tax relief attorney.
Innocent Spouse Relief
Many couples file their taxes jointly, and when one spouse has dealings that are dishonest and the other isn’t aware of it, Innocent Spouse Relief exempts the innocent spouse from tax liability. Of course, there must be proof that the circumstances make it unfair to penalize both spouses. Some divorce situations may also bring up the need for this tax relief. There are three types of relief to consider, and you must meet all of the conditions established by the IRS to qualify.
Currently Non Collectible
Any number of factors could affect your ability to pay taxes. When your gross monthly income dips below your allowable expenses (as established by the National Standards,) you may qualify for a Currently Non Collectible, or CNC, status. When you can’t afford to pay the amount of taxes you owe, complete the paperwork anyway. When you need a bit of breathing room and time to get your finances in order, this status could provide the relief you need.
Be aware, however, that there are some consequences to filing for this status. The IRS may file a federal tax lien against your property, hold onto future tax refunds, and charge interest and late penalties on the amount you owe. You may want to consider CNC status if you are unemployed and only receive income from Social Security or welfare benefits.
Collection Statute Expiration Date
If you owe back taxes, the amount, plus taxes and fees, mounts up without stop. Within just a couple of years, those late payments can add up to an overwhelming amount. You may find some relief through the Collection Statute Expiration Date, or Expiration of Statutes. That is, the IRS has ten years from the date of assessment to try to collect your unpaid taxes.
However, it isn’t as simple as not paying and then hiding from the IRS. The government’s tax service can take several steps to suspend that date, so you’re in danger of tax debt consequences for much longer than ten years. If you believe your debt qualifies for the ten-year limit, contact a knowledgeable tax attorney.
Tax Audit Appeals
Sometimes, when the IRS conducts an audit, you may not agree with their findings. This generally puts you in the position of owing more than you believe you should pay. When this happens, you don’t have to submit to the IRS recommendations. Professionals from the Tax Group Center team note that your tax attorney can focus solely on representing your case, while attorneys from the IRS must handle several cases. They should know; the Tax Group Center has been handling cases for over thirty years.
Unintentional Tax Fraud
There’s no question that tax laws are confusing. Unfortunately, one minor mistake could land you in hot water with the IRS. Maybe you turned your taxes in without completing all the forms or with a mistake. Maybe you claimed the Earned Income Tax Credit, as you have in the past, but you no longer qualify. Another easy misstep is claiming the wrong deductions, such as overreaching when you claim business deductions.
There are many circumstances that could bring you up against the IRS. The bottom line is that you must be very careful when filing your taxes, and be aware that sometimes, in spite of your best efforts, you could need help when dealing with the government’s tax service.