When You Need to File a Tax Return and How IRS Lawyers Can Help

Monday, October 3, 2011

When You Need to File a Tax Return and How IRS Lawyers Can Help

Paying taxes is nothing new to any of us, especially not once you enter the working force. However, it can be confusing to determine whether or not you will be responsible for filing taxes. This is where IRS lawyers come in handy as they can help you determine if you have any liabilities that you need to claim. Some people do not need to file, either because they have zero tax liability or because they did not earn enough to qualify for any refunds. Whether or not you are required to file, it is always a good idea to do so to avoid any IRS scrutiny over returns.

Reasons to File Taxes

Most taxpayers according to IRS lawyers file to get a refund or to pay their outstanding tax liabilities. Depending upon your income, your age and your liabilities, you may not be required to file any taxes, but it is advised that you do so in order to determine your liabilities, if any. You also want to use the advice of IRS lawyers when it comes to any legality that may surround your taxes. Some of the most common reasons why you would file your taxes, other than the legal requirements are to claim deductions and have some of your income refunded to you.

Common Deductions on Income Taxes

There are many different deductions that tax filers may qualify for. IRS Lawyers along with Certified Public Accountants (CPAs) know how to get the maximum deductions for both taxpayers and businesses. A list of common deductions includes the following:

  • Federal and State Income Taxes – These two forms of taxes are withheld from each paycheck, providing your income exceeded a certain amount each period. Most employees will have a federal and state deduction on their paychecks. If you do not have a federal or state deduction, you are not going to be eligible for a refund of any wages withheld. Income taxes are one of the most common problems that IRS Lawyers handle.
  • College Credits – If you or anyone of your dependents attended college that was paid for by you out of pocket, you can claim these college credits when you file your taxes. There are two major programs that the federal government runs – Lifetime Learning Credit and the American Opportunity Credit – both of which allow up to a certain amount to be deducted from your tax liability. This will ensure a refund if you paid taxes throughout the year and do not have any other tax liabilities. If denied, you can contact IRS lawyers to determine if you should have gotten the credit.
  • Earned Income Tax Credit – known as an EITC, if you have qualifying dependents and fall under the income guidelines, IRS Lawyers will tell you that you are qualified to take this deduction. There are strict guidelines, however, so be sure that you meet the requirements before taking the credit. Otherwise you will need IRS Lawyers when the federal government demands that you repay the credit.
  • First Time Homebuyers Credit – This is a relatively new credit to the market that allows for an $8,000 tax credit for first time homebuyers. IRS Lawyers advise taking the credit when you buy a new home in a qualifying year. The home does not have to be newly built, you just have to be purchasing a home for the first time in your life.


How IRS Lawyers can help

It is never a pleasant experience when the IRS comes knocking on your door, so to speak. If you are called upon for an audit IRS lawyers are your best bet because they know tax laws intricately. Using their services can save not only your wages from being garnished, but possibly your possessions from being seized and sold to pay existing liabilities.