I can assist in the structuring of your personal and business affairs to minimize tax consequences. This could involve the drafting of wills, trusts, partnership agreements, filing elections with the IRS, or drafting other documents consistent with your overall financial plan.
If you are involved in a foreclosure or short sale, you may be exposed to the realization of income, commonly called phantom income, when debt is forgiven by the lender. There are exceptions to the recognition of income, and I can provide guidance in structuring the sale so as to minimize or even eliminate income tax.
When do you file a 1099 as opposed to a W-2? There are traps for the unwary because an employer must categorize a payee as either an employee or a contractor. Significant penalties can be imposed upon employers who do not withhold payroll taxes. I can assist you in this process.
When must you file a return? When does a public charity become a private foundation? I can help answer these, and many other questions.
When the IRS contacts you, what are your rights and obligations? Unfortunately, it is in the examination process that the relationship between the taxpayer and the IRS can become adversarial. In some cases, the effort to collect a tax may evolve into a criminal prosecution.. I can help recognize this phenomenon and try to prevent it from occurring.
I can assist you in obtaining a payment plan in order to resolve your tax obligations. Additionally, in some cases the IRS will accept an offer in compromise, reducing your tax debt to an amount certain which you can afford to pay. No doubt you have seen commercials on cable TV from firms touting their ability to settle tax obligations for pennies on the dollar. Be very skeptical of these claims.
Many times one spouse does not fully inform the other spouse of information on the tax return. Under the law, both filers of a joint return are jointly liable for the tax owed. In recent years, Congress and the IRS have expanded the exception to this rule. Now, it is possible for a truly innocent spouse to be relieved of his or her tax obligations based upon individual circumstances.
The IRS has enormous authority to assess and collect taxes. This can result in the filing of a tax lien or even the freezing of bank accounts. Nevertheless, the taxpayer has certain due process rights that can be asserted in order to level the playing field.
You have the right to contest a tax deficiency within the IRS. There are procedures in place to seek administrative review of IRS action. You can also seek the assistance of the Office of Taxpayer Advocate. Additionally, the IRS offers a means to mediate a settlement without the need for court proceedings.
If you do not have funds with which to pay the tax deficiency assessed by the IRS, you can seek review in tax court. This process definitely requires the assistance of counsel in presenting your case to judges who have special expertise in the area of tax law.
This federal court also hears refund claims for tax obligations. Here, your case is presented to a federal judge who adjudicates claims by citizens against the federal government.
If you are able to pay the tax obligation, you can then seek a refund of the taxes paid in a federal trial court. Here, a jury would listen to the facts and decide whether you or the IRS is correct and your respective legal positions. Again, the services of an attorney would be instrumental in presenting your case to a trial jury.
