Different Types Of IRS Problems
The Internal Revenue Service is a government agency that most people do not want to know too intimately. Taxpayers file their returns in a timely manner to avoid a garnishment, levy, or criminal charges. These are just a few of the IRS problems that can ruin the future of individuals who do not adhere to tax filing regulations.
A person engaging in tax evasion or tax fraud may eventually face criminal charges and a lengthy jail sentence. Underreporting income, claiming an excess number of withholding deductions, and failing to file tax returns each year are prohibited under federal law. Internal Revenue Service criminal investigators are trained to find individuals who commit these acts. Individuals contacted by an investigator should hire a tax attorney prior to answering any questions.
Some taxpayers fail to file returns intentionally, thinking that they will never be found. The Internal Revenue Service takes active steps to target and contact taxpayers who do not regularly file tax returns. Prior to the issue escalating into a criminal investigation, the taxpayer should take advantage of the government’s voluntary disclosure policy regarding return filing. The guidelines within this policy are complex and regularly change so an individual should retain a CPA and possibly an attorney to ensure compliance.
Taxpayers who unknowingly stumble into a tax issue can be held just as responsible as those who intentionally create a problem. An individual who files a joint return with a spouse who under-reports income may be held accountable for the issue. This accountability does not end when the two become divorced or if the spouse dies. The government has a provision for innocent spouse relief that these individuals, in conjunction with their tax attorneys, may want to consider.
Placing levies on real estate, securities, and bank accounts is one way the government collects tax debts. An individual can also be subject to a mandatory wage garnishment through the employer. In addition, a lien may be placed on assets, preventing their transfer or sale until the tax debt has been satisfied. Individuals should seek assistance from a CPA if they become subject to any of these collection methods.
IRS problems will likely result from commission or tax fraud, tax evasion, or joint return issues. The Internal Revenue Service can collect tax debts via liens, levies, and wage garnishments. In extreme cases, it may file criminal charges against an offender, who can be sent to jail if convicted. To avoid all issues, a CPA should file the tax return and a tax attorney should be contacted if any problems arise.
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A person engaging in tax evasion or tax fraud may eventually face criminal charges and a lengthy jail sentence. Underreporting income, claiming an excess number of withholding deductions, and failing to file tax returns each year are prohibited under federal law. Internal Revenue Service criminal investigators are trained to find individuals who commit these acts. Individuals contacted by an investigator should hire a tax attorney prior to answering any questions.
Some taxpayers fail to file returns intentionally, thinking that they will never be found. The Internal Revenue Service takes active steps to target and contact taxpayers who do not regularly file tax returns. Prior to the issue escalating into a criminal investigation, the taxpayer should take advantage of the government’s voluntary disclosure policy regarding return filing. The guidelines within this policy are complex and regularly change so an individual should retain a CPA and possibly an attorney to ensure compliance.
Taxpayers who unknowingly stumble into a tax issue can be held just as responsible as those who intentionally create a problem. An individual who files a joint return with a spouse who under-reports income may be held accountable for the issue. This accountability does not end when the two become divorced or if the spouse dies. The government has a provision for innocent spouse relief that these individuals, in conjunction with their tax attorneys, may want to consider.
Placing levies on real estate, securities, and bank accounts is one way the government collects tax debts. An individual can also be subject to a mandatory wage garnishment through the employer. In addition, a lien may be placed on assets, preventing their transfer or sale until the tax debt has been satisfied. Individuals should seek assistance from a CPA if they become subject to any of these collection methods.
IRS problems will likely result from commission or tax fraud, tax evasion, or joint return issues. The Internal Revenue Service can collect tax debts via liens, levies, and wage garnishments. In extreme cases, it may file criminal charges against an offender, who can be sent to jail if convicted. To avoid all issues, a CPA should file the tax return and a tax attorney should be contacted if any problems arise.
Click here for more information on getting Help with IRS problems