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Despite their best efforts to follow the numerous rules set out by the Internal Revenue Service (IRS), some individuals and businesses might find themselves in the middle of a tax controversy. Both state and federal tax authorities will take proper steps to collect the money to which they are owed. But a taxpayer might not agree as to the amount of tax that is owed. When this happens, you have a few options at your disposal, which could be aided by an experienced tax attorney.
You have the right to challenge a tax assessment that you dispute by using specialized tax courts. A Maryland Tax Court litigation attorney in Rockville might be able to help you if your appeals reach the U.S. Tax Court or Maryland Tax Court.
Taxpayers who disagree with a proposed tax assessment have the right to request an appeal with the IRS Independent Office of Appeals federal cases or the Comptroller’s Office of Hearings and Appeals for Maryland cases.
A taxpayer can explain the discrepancy in order to have the assessment adjusted. When utilizing Tax Court, the taxpayer is not required to prepay the disputed tax assessment.
In addition, a person or business can request an offer in compromise or an installment agreement if they require an altered plan for paying the assessed tax. A Rockville Maryland Tax Court lawyer could help someone to exercise their right as a taxpayer in pursuing adjustments.
If a taxpayer disagrees with a proposed assessment from the Comptroller of Maryland, they should request an appeal within 30 days. The Office of Hearings and Appeals will issue a Final Notice of Determination. If the taxpayer is not satisfied with this result, that individual then has 30 days to file a Petition of Appeal to the Maryland Tax Court. If this Petition is not filed within 30 days, the final determination from Appeals can no longer be challenged.
The Office of Hearings and Appeals will review late filed appeals made over 30 days after the initially proposed assessment. However, the Hearing Officer’s decision is final and cannot be appealed to the Maryland Tax Court. The Maryland Tax Court contains five Judges selected by the governor and taxpayers may represent themselves in court. However, if the tax assessment at issue is about $50,000 or more, it is in their best interest to work with an attorney who could analyze their records and identify any areas of their tax history that might resolve their tax dispute.
One specific area where an attorney could provide guidance is in the written petition. The taxpayer must describe their case in clear detail and address why they believe the assessment of a tax was incorrect. There is no fee to file this petition.
Taking a case to tax court should always be the last option – and few cases ever get to that point. However, it may be necessary in order to protect your finances in the event that the Comptroller’s office proposes a tax assessment that you dispute.
A Maryland Tax Court Attorney in Rockville can offer personalized help. Whether you want to establish that you have paid your full obligation, or request an alternative collection method, a lawyer could help you come to a favorable resolution. Contact one today to learn more.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.