Both the state and federal governments rely on tax revenue to pay for everything from education, to healthcare, to pensions. The taxpayers who provide this revenue often do not understand the complex laws that govern how much each taxpayer owes and how it is collected. As a result, it is not unusual for someone to make a mistake. In other situations, the IRS or the state-level equivalent might believe that you have intentionally failed to provide your fair share in taxes.
A Rockville tax attorney could help individuals or businesses to better understand the role that tax laws play in their lives. This can include creating tax payment plans, determining the correct amount to pay, and dealing with controversies that might arise in the civil or criminal sectors.
An essential and protective role that a tax attorney could play is to identify a taxpayer’s tax liabilities before the time comes to pay. This involves more than just acknowledging a taxpayer’s income and pinpointing the relevant tax brackets. Instead, a local tax attorney could assist taxpayers in identifying potential deductions, interpret the tax code, and arrange for setting aside cash for eventual payment.
Even with proper tax planning, the IRS or equivalent state agency may still choose to pursue an audit. An audit does not necessarily mean that anything is wrong, but the enforcement agencies will still demand additional documentation and could request a face-to-face meeting.
One role for a Rockville tax assistance lawyer is to attend to a taxpayer’s needs during an audit. This includes identifying the reason for the audit, gathering the necessary documentation, and attending in-person sessions with IRS personnel. But an attorney’s potential help does not end there. The Taxpayer Bill of Rights § 5 says that all taxpayers have the right to appeal an IRS decision. State law allows for similar rights to appeal. An attorney could work to present cases in court when a party disputes the result of an audit.
An alleged failure to pay taxes might be more than a financial problem. The IRS and state authorities have the ability to refer a case to law enforcement if they believe that an intentional effort to underpay taxes has occurred. This can include allegations of tax avoidance or fraud.
A local tax attorney could help construct a strong defense in criminal court that questions whether a person or business actually intended to mislead a tax-gathering agency. If a prosecutor cannot prove this intent to deceive, many criminal allegations will fall by the wayside.
Proper tax planning is an essential part of your financial health. Especially for businesses or individuals with substantial assets and sources of income, an attorney could help to identify and limit a taxpayer’s tax liabilities. But despite someone’s best efforts and intentions, tax controversies can still arise. These can include audits that demand additional payments or even criminal allegations of intentional tax fraud.
No matter your exact needs, a Rockville tax attorney could provide assistance. A lawyer could work with you to explain the tax laws and how they apply to your specific situation. Call an attorney if you wish to resolve your tax controversies and plan for the future.