| IRS Getting More Aggressive During Recession, Austin Tax Attorney John McDuff Says
Tax day has come and gone. Filing a return, even if it is late; minimizing the amount of taxes owed; thinking of filing bankruptcy; these three tips may help during this recession's tax collection season. If the penalties can't be waived, the amount owed may be reduced. The right form is the Offer in Compromise. Some of the very best protection from paying tax penalties is to review the already submitted documentation: accountants, tax preparers, and bookkeepers make calculation errors all of the time. "The tax may be overstated, due to your mistakes on your returns, or your accountant's mistakes," McDuff asserts. As a Texas tax accountant who has served thousands of clients, McDuff has been successful in getting the IRS to accept amended returns after errors have been discovered. All of the income reported to the IRS, including W-2's and 1099's, in addition to other reports, are taxed, with no deductions given. " For most taxpayers-but especially business owners-deductions and exemptions are crucial. Problems multiply for business owners who don't file because unnecessarily high tax bills may result due to fines and interest accumulating. McDuff will file a return for clients even if it is late and will urge the revenue officer to accept the new return in place of the 6020b. Having an attorney to minimize the risk of prosecution is also crucial to success when the IRS is conducting an investigation, McDuff says. This may lead to IRS agents becoming more and more aggressive about pursuing any and all back taxes, interest penalties, and fines. The first step is to make certain that a file is submitted especially for business owners or corporations. " Bankruptcy is often the best way to protect one's assets. This usually means family or friends, as the source of the payment of a part of the debt. McDuff also states that a feasible way forward is to set up a monthly payment plan with the IRS. For many clients, the monthly payment amount that the IRS suggests is not realistic. Now the IRS gets busy. For many taxpayers, simply filing and reviewing already submitted forms will be a solution. If McDuff believes the bankruptcy filing is appropriate after a consultation, clients can seek out a bankruptcy specialist or request a referral. A tax attorney may be able to get the amount reduced and McDuff has often gotten these monthly payments reduced to more reasonable levels. The IRS may be relentless in their pursuit of tax revenue especially during a recession. By turning to a skilled tax law attorney early along the way, many of tax problems can be avoided, McDuff says. But irrespective of how deep the problems, how large the tax bill, and how long the tax issue has lingered, a tax lawyer can still offer assistance. For many people, McDuff states that a "filing of bankruptcy should be considered. IRS Getting More Aggressive During Recession, Austin Tax Attorney John McDuff Says |
Saturday, 2 June 2012
IRS Getting More Aggressive During Recession, Austin Tax Attorney John McDuff Says
