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How a Chicago Tax Attorney can help with IRS/State Seizure of Assets

Monday, October 3, 2011

How a Chicago Tax Attorney can help with IRS/State Seizure of Assets

If you have recently been found to have an outstanding tax liability that has not been paid, you may be subject to having the IRS seize all of your assets. This not only includes your bank accounts but also any personal property you own such as a house, a car or even your business assets. If you find yourself within this situation and you reside in or near Chicago, a Chicago tax attorney can be of great assistance. It takes an expert to deal with the IRS successfully and a Chicago tax attorney will be your best bet in dealing with a state seizure of assets.

Why will the IRS implement a State Seizure of Assets?

The IRS will not immediately begin looking to seize assets. Rather the seizure of assets is a last resort attempt to collect your outstanding tax liability. Obtaining the assistance of a Chicago tax attorney can help you either delay or eliminate the need for a state seizure of your personal and business assets. However, your Chicago tax attorney will tell you that if you have received multiple notices from the IRS and have disregarded them, the seizure will be difficult to postpone or cancel unless you are able to set up an immediate payment arrangement with the government. When notices go disregarded, the IRS will seek alternative measures to collect any debt owed to them. After the seizure of your assets, they will be scheduled to be sold unless you pay your outstanding liabilities or have further assistance from your Chicago tax attorney.

What Personal or Business Assets can the IRS Seize?

The IRS is able to seize any assets that they get approval for. In most cases, they are able to seize any personal property with a few exceptions. If you rent a house or apartment, they cannot legally seize the residence because it is not yours. However, they can seize cars and other personal belongings that they deem necessary to pay off outstanding debts. Your Chicago tax attorney will notify you of any property that is subject to seizure.

The IRS has to take extra steps to seize your principle residence. There must be an order signed by a judge whom the IRS has presented their case to. A principle residence also cannot be taken without the IRS proving to the courts that they have taken every means possible to collect the debts and have failed. A notice will be sent to you upon the order of seizure and you can seek out the help of your Chicago tax attorney to determine if you can get your assets back.

Are there any Restrictions on what the IRS can seize?

Yes, there are many different items that the IRS is not allowed to seize and your Chicago tax attorney can help you make sure that those items are not taken from your possession. These items include personal clothing, books for school or your profession, undelivered mail and retirement or unemployment benefits up to a certain amount. Contacting a Chicago tax attorney after you have received a notice of seizure will greatly help your chances of fighting the seizure of your assets and getting them back before they are sold to pay off your liabilities. After all, you will need the assistance of a Chicago tax attorney when dealing with the IRS for such complicated tax matters. 



Using a California Tax Attorney to defend an Innocent Spouse

Monday, October 3, 2011

Using a California Tax Attorney to defend an Innocent Spouse

 

There are many different unique tax situations that you may find yourself in at any given time. A California tax attorney can help you through these situations and most times with a positive outcome. If you have previously filed a tax return and find that you are now being charged with a tax issue that your current or former spouse is responsible for, you will need the assistance of a California tax attorney to help you as you are considered an innocent spouse.

 

How do I Qualify for Innocent Spouse Relief?

 

According to the IRS there are several conditions that you must meet in order to seek relief as an innocent spouse. Your California tax attorney can help you determine if you meet all of the requirements and in addition can help you to file for relief once your qualification has been determined. To qualify you must meet all of the following:

 

  • You filed an income tax return either with your spouse or former spouse in which an error was made in reporting. By error, the IRS does not mean an oversight as that is bound to happen. Filing income taxes without claiming particular income is known as erroneous filing.

 

  • Your California tax attorney will let you know that you must not have had any knowledge of the erroneous filing of the income tax return. You need to be able to prove to your California tax attorney and to the IRS that you had no knowledge of the errors that were reported such as unstated income.

 

  • The IRS will then determine if you meet any of their conditions for not knowing about the erroneous filing. Some things that the IRS will evaluate when they review your case is whether you have been divorced, if your spouse has abandoned you, if you benefited directly from the understatement on the tax return or if you benefited from the return that resulted in a refund. Your California tax attorney will work with you as well as the IRS to ensure that the most accurate information is reported to the IRS to aid in evaluating your case.

 

How to File for an Innocent Spouse Relief

 

Once you have decided, along with your California tax attorney that you meet all of the requirements; your California tax attorney will start the process of filing for relief on your behalf. IRS form 8857 will be filled out and you must include a letter stating the reasons why you are seeking innocent spouse relief. The best advice that your California tax attorney will give you is to be completely honest in your statement and stress the particular reasons as to why you feel that you should be granted relief.

 

Using the help of a California tax attorney will yield you the best results in filing for an innocent spouse relief. Tax attorneys are well versed in the tax laws and will advise you to file the relief as soon as you are aware that a tax liability has been issued against you. If you are unaware and a tax lien is filed against your personal property, you will be able to file and have the tax lien removed as soon as your relief for innocent spouse is granted. Your attorney will be able to help you with the tax lien removal as well.

Using a California Tax Attorney to defend an Innocent Spouse

There are many different unique tax situations that you may find yourself in at any given time. A California tax attorney can help you through these situations and most times with a positive outcome. If you have previously filed a tax return and find that you are now being charged with a tax issue that your current or former spouse is responsible for, you will need the assistance of a California tax attorney to help you as you are considered an innocent spouse.

How do I Qualify for Innocent Spouse Relief?

According to the IRS there are several conditions that you must meet in order to seek relief as an innocent spouse. Your California tax attorney can help you determine if you meet all of the requirements and in addition can help you to file for relief once your qualification has been determined. To qualify you must meet all of the following:

  • You filed an income tax return either with your spouse or former spouse in which an error was made in reporting. By error, the IRS does not mean an oversight as that is bound to happen. Filing income taxes without claiming particular income is known as erroneous filing.

  • Your California tax attorney will let you know that you must not have had any knowledge of the erroneous filing of the income tax return. You need to be able to prove to your California tax attorney and to the IRS that you had no knowledge of the errors that were reported such as unstated income.

  • The IRS will then determine if you meet any of their conditions for not knowing about the erroneous filing. Some things that the IRS will evaluate when they review your case is whether you have been divorced, if your spouse has abandoned you, if you benefited directly from the understatement on the tax return or if you benefited from the return that resulted in a refund. Your California tax attorney will work with you as well as the IRS to ensure that the most accurate information is reported to the IRS to aid in evaluating your case.

How to File for an Innocent Spouse Relief

Once you have decided, along with your California tax attorney that you meet all of the requirements; your California tax attorney will start the process of filing for relief on your behalf. IRS form 8857 will be filled out and you must include a letter stating the reasons why you are seeking innocent spouse relief. The best advice that your California tax attorney will give you is to be completely honest in your statement and stress the particular reasons as to why you feel that you should be granted relief.

Using the help of a California tax attorney will yield you the best results in filing for an innocent spouse relief. Tax attorneys are well versed in the tax laws and will advise you to file the relief as soon as you are aware that a tax liability has been issued against you. If you are unaware and a tax lien is filed against your personal property, you will be able to file and have the tax lien removed as soon as your relief for innocent spouse is granted. Your attorney will be able to help you with the tax lien removal as well.



How to stay ahead of your Payroll Taxes with the Right IRS Attorney

Monday, October 3, 2011

How to stay ahead of your Payroll Taxes with the Right IRS Attorney

All of the paperwork that surrounds the idea of running a business can be daunting. It is not always possible to stay on top of everything, especially if you are running your business as a small operation. With the pressure of the IRS to ensure that all of your paperwork is correct, hiring an IRS attorney can only benefit your business. If you are not sure what an IRS attorney can do for your business, here is more information that will stress the importance of hiring one.  

What an IRS Attorney Does

An IRS attorney offers you more than just an overview on your taxes. You can rest assured that the IRS attorneys you choose will be able to help you stay ahead of your payroll taxes. In addition, consulting with an IRS attorney will benefit you in more ways than one. Most companies that are just starting out rely on an IRS attorney to educate the business owner on which taxes must be paid and how often they must be paid. Liabilities exist as well which the employer must meet – this includes matching taxes that the employee pays. You want to be aware of the legalities in which you know what taxes are due and how much to withhold from your employee’s paychecks each pay period. If you do not withhold enough, you will be faced with severe penalties as a business owner. Hiring an IRS attorney can help you prevent any penalties as well as with your calculations.

Payroll Taxes that you are Responsible For

One of the first things that an IRS attorney will do is to help you determine what payroll taxes that you are responsible for. If you are a startup business, you want to ensure that you start your company the right way and not under the watchful eye of the IRS because of a mistake in filing taxes. Some of the payroll taxes that you will be responsible for include:

  • Income taxes – both federal and state taxes must be withheld from the employee’s paycheck each period. You will have your employees complete a W-4 form at the beginning of their employment. This form determines how much you withhold based on the exemptions and deductions that each employee claims. An IRS attorney can help you calculate the amount of taxes to withhold from each employee’s paycheck.

  • FICA – FICA is an acronym for Federal Insurance Contribution Act. These funds contribute to public assistance programs such as Medicare and Social Security. Employers are required to match the employee’s contributions and should be prepared to submit this payment with the quarterly payroll taxes using form 941. You can visit the local IRS office or your IRS Attorney to get a copy of the form.
  • FUTA – FUTA is short for Federal Unemployment Tax. This does not get taken out of the employee’s paycheck, rather it is a liability of the business owner to pay. Only 1% of the first $7,000 earned by an employee is subject to FUTA.

Why You Should Contact an IRS Attorney Today

Starting your business the right way is one way to help ensure that you do not fall into a trap that you may not be able to climb out of. Unpaid taxes are subject to having a lien placed on your business as well as having the contents of your business seized in order to pay off debts. Get started on the right foot by contacting an IRS attorney today to help you with your payroll liabilities.



How a Sales Tax Attorney can help with Estate Taxes

Monday, October 3, 2011

How a Sales Tax Attorney can help with Estate Taxes

Preparing your estate is not as easy as it may seem. There are a lot of legalities that surround estates including various taxes. In order to make sure that your estate is fully protected you will want to contact a sales tax attorney. A sales tax attorney can help you get your estate in order so that it is not hindered by the IRS upon your death. The last thing that you want is for your beneficiaries to be tied up in probate court fighting over your assets when a sales tax attorney could help you tie up loose ends during your estate planning.

Types of Taxes involved with Estate Planning

If you are new to the aspect of estate planning then you may not fully understand the types of estate taxes that you and your beneficiaries will be responsible for claiming. Some of the various taxes that a sales tax attorney can help you through include:

  • Estate Taxes – these taxes must be paid within nine months of the death of the estate holder. Your sales tax attorney can help you file these taxes and if necessary can help you get a six month extension in order to get the paperwork gathered and filed.
  • Gift Taxes – if you give or were given a gift you may be required to pay taxes on those gifts. Your sales tax attorney will tell you that the IRS defines a gift as any money or property received that you pay less than fair market value or nothing for. Gift taxes are claimed and paid with your normal income taxes each year.

Deductions that May Reduce Estate Taxes

A sales tax attorney is well versed in the tax laws that surround estates. In such, a sales tax attorney is also aware of all of the deductions that a person can take that will help reduce the amount of the estate taxes. You will want to utilize these deductions in order to get the best tax benefit.

  • Marital Deduction – this deduction is one of the most popular and beneficial deductions that surrounds estate taxes. A sales tax attorney knows that a marital deduction qualifies if the property of a deceased spouse passes outright to the living spouse. Contact a sales tax attorney to determine if you qualify for this deduction.
  • Charitable Contributions – if a portion of the estate is left to charity or a charitable organization, it will be deducted from the estate taxes. Charitable contributions mean less estate tax is paid.
  • Mortgage Deductions – If you have a mortgage on your house at the time of your death and the mortgage passes onto your beneficiaries, it can be deducted from the estate taxes.
  • Administration Expenses and Losses – administration costs to execute the estate can be deducted from the taxes due. Also, losses that occur during the administration of the estate are deductable as well.

Make sure you speak with your sales tax attorney to ensure that you get the best possible deduction on your estate taxes. After all, you do not want your gift becoming a burden to you and ending up in probate court fighting with the IRS. By ensuring that all issues are addressed head on and the appropriate deductions being taken, you have the best chance of getting through the estate tax filing with minimal taxes due. 



How a Payroll Tax Attorney can help with a visit from Revenue Officers

Monday, October 3, 2011

How a Payroll Tax Attorney can help with a visit from Revenue Officers

If you have any experience dealing with revenue officers, you know that they are not paying a social visit. A visit from a revenue officer usually indicates that something is outstanding in terms of IRS debt. A payroll tax attorney can help to ensure that all of your business payroll taxes are in order so that you have one less thing to worry about should you be contacted by a revenue officer. You want to have a payroll tax attorney available to you in any event should you have employees that you provide payroll to.

Reasons why Revenue Officers Contact You

There are a plethora of reasons why a revenue officer may contact you. Your taxes may be late in being filed or you may have an outstanding liability that the IRS wants to satisfy. Regardless of the reason for contact, the revenue officers will contact you via postal mail first, and then if you do not respond to the mail notices, you may be paid a visit at your place of business or at your home. Revenue officers are only assigned to tax cases that are delinquent so it is in your best interest to contact a payroll tax attorney if your payroll taxes come under scrutiny. Since your payroll taxes fall under business taxes, having a payroll tax attorney on hand will benefit you in more ways than one.

What a Payroll Tax Attorney can do for you

When you establish your business and start hiring employees, a payroll tax attorney can help ensure that you are set up and calculating your payroll taxes correctly. By doing so, you are avoiding future audits from the IRS and potential contacts by revenue officers to collect on delinquent taxes. As a business owner you can ensure that your payroll tax attorney will inform you of the necessary types of payroll taxes and will help you file your quarterly tax payments. Here are some of the payroll taxes that you are responsible for as a business owner: FICA, FUTA, and Income Tax. Filing the taxes correctly and paying the right amount for each category will help ensure that you are not called upon by the IRS.

What Happens when a Revenue Officer Visits

If you have already had a visit from a revenue officer, contacting your payroll tax attorney will benefit you immediately. You can then refer all correspondence from the revenue officer to your payroll tax attorney to come up with a solution to your issues. If there happens to be an issue with your payroll taxes, your payroll tax attorney will be able to establish a payment plan to bring all accounts current and into good standing. A payroll tax attorney can also help you with other tax liabilities if they should exist.

The main thing you need to understand is that revenue officers have the power to issue a seizure of your assets to pay off existing liabilities. Your payroll tax attorney will advise you not to disregard the warnings received by a revenue officer because it will not work in your favor. Instead, use the power of your attorney to help you get your tax situation under control before it results in a seizure of both personal and business assets. 



Using a Payroll Tax Attorney to help with Business Taxes

Monday, October 3, 2011

Using a Payroll Tax Attorney to help with Business Taxes

Business taxes are a major responsibility for all business owners. There are several types of business taxes that you are responsible for such as sales tax, payroll taxes if you have employees and you may be responsible for claiming business income on your personal taxes if you are a sole proprietor. A payroll tax attorney can help you determine which, if any, payroll taxes you are subject to and a payroll tax attorney can also work in conjunction with your business tax lawyers if you have one. If you are unsure whether you need a payroll tax attorney, you can call for a free consultation to determine your personal situation.

When a Payroll Tax Attorney can help

If you have been contacted by the IRS in regards to any outstanding liabilities, you can contact your payroll tax attorney to help you with the situation. Because each tax situation is different, you will essentially be turning over power of attorney to your payroll tax attorney to resolve the situation for you. You can rest assured that the payroll tax attorney you choose will work for you and resolve the issue with an agreement that you can adhere to. Your business is at stake in times like these as the IRS will seize both personal and business assets to satisfy liabilities that are outstanding.

What Taxes your Business is Responsible For

There are several categories of taxes that you will be responsible for as a business owner. Your payroll tax attorney can help you get all taxes in order for the quarterly filings necessitated by the state and federal government.

  • Payroll Taxes – these include Federal unemployment taxes, FICA and income taxes for both state and federal levels. A payroll tax attorney comes in handy to ensure that you are filing and paying the correct amounts each quarter to avoid any outstanding liabilities. Since you can lose your business by not paying your payroll taxes correctly, you want to ensure this form – 941 – is filled out correctly.
  • Sales Taxes – this comes at the state level and must be paid for each item you sell that is required to have sales tax. The IRS and your state office will give you a flier that informs you of which items must have tax charged. Most services and goods are required to have sales tax. Sales tax is paid monthly or quarterly depending on the amount of sales you have.
  • Income Taxes – these are your personal taxes that you must file if you are a sole proprietor. You will claim any business expenses and losses on your own tax return. If you are classified as an LLC or a Corporation, you will still be responsible for paying taxes – consult your payroll tax attorney for specific information applying to your organization.

Consulting a Payroll Tax Attorney

Most consultations with a payroll tax attorney are free and determine whether or not you are in need of the services. While it is always helpful to have a payroll tax attorney that you can rely on in times of trouble, having one available during regular course of your business will help to ensure that you do not encounter trouble with your payroll or business taxes going forward. Since your business relies on your ability to file taxes correctly and on time, make the most of it by hiring a payroll tax attorney today. 



Fighting a Tax Lien with the Help of an Encino Tax Attorney

Monday, October 3, 2011

Fighting a Tax Lien with the Help of an Encino Tax Attorney

Tax liens are daunting, especially if you are unaware of what a tax lien means for you, individually and your credit report. Many people do not fully understand what it means to have a tax lien placed against you. The government will work to make itself priority which is why you need the help of an Encino tax attorney. An Encino tax attorney can help you with your tax payments with the IRS and to ensure that a lien is not placed against you where it can hurt your credit and prevent you from obtaining necessary accommodations such as a house or car. If you find yourself facing down a tax lien, contacting an Encino tax attorney today can help you in your battle.

What is a Tax Lien?

A tax lien is a record placed upon your credit report and your social security number as a means for the IRS to ensure that they are the first to collect outstanding liabilities. Tax liens are placed against personal property such as homes and cars. Consider contacting an Encino tax attorney today to help further explain tax liens and their implications.

When can the IRS Place a Lien against my Property?

There are certain procedures that the IRS must follow in order to effectively establish a tax lien against your personal property. Your Encino tax attorney will inform you of the three steps that must occur before a tax lien can be placed by the IRS.

  1. First the IRS will assess the liability to ensure it is valid. If the liability is not valid, the IRS will review your tax returns to determine why a liability was calculated. If there is no question about the validity of the liability, your Encino tax attorney knows that the IRS will proceed to the next step in the tax lien process.
  1. The IRS will contact you via US Mail with a “Notice and Demand” of payment. This demand is actually a bill that tells you how much you owe the government in taxes and penalties. If you receive this notice in the mail, contact your Encino tax attorney right away to get the ball rolling as you only have 10 days to respond to the notice before the final action is taken.
  1. If you do not pay or make arrangements to pay your debts within 10 days of receiving the notice and demand of payment, the IRS is now legally able to place a tax lien upon your personal property. Once the tax lien is placed, it is rather difficult to remove and you will need the assistance of your Encino tax attorney.

I have a Tax Lien on my Record – Now What?

First, you want to contact your Encino tax attorney who will make sure that the proper steps were followed in placing the tax lien upon your personal property. Your attorney will then work with the IRS with your approval to come up with an acceptable payment plan. However, it is very difficult to have a tax lien removed when it has been placed due to non payment. Utilize the services of the expert you have hired – your Encino tax attorney – to help you get the best results and a possible lien removal. Because these liens can severely impact your credit, you want to make sure you handle the situation sooner rather than later. 



IRS Audit Help from a Santa Monica Tax Attorney

Monday, October 3, 2011

IRS Audit Help from a Santa Monica Tax Attorney

Facing an IRS audit can be a scary occasion, especially if you are unsure of why you are being audited. One of the best things that a person can do when they have been notified of an audit is to contact a tax attorney. If you live in Santa Monica, you can find a Santa Monica tax attorney to assist in your IRS audit. Before you take any action, however, you will want to know what an audit is and how you can prepare yourself for the day of the audit. In addition, learning about why individuals or businesses are audited can help you prevent future audits. Here are some ways that a Santa Monica tax attorney can help you with an IRS audit.

What is an Audit?

An audit is an evaluation carried out by an IRS agent to determine if your previous year’s taxes have been filed correctly. During the audit your tax returns will be evaluated to determine if any abnormalities exist. You will want to have your Santa Monica tax attorney present during the audit process to help you establish the best case for your audit.

How does the IRS Determine who to Audit?

The IRS has a standard set of procedures that they follow. Your Santa Monica tax attorney will know all about the procedures and how to effectively handle an audit process. The process begins as soon as you file your tax returns. Once your returns are filed, the IRS will begin to compare your audits to those that are similar in nature. If a particular point stands out, they will place your tax return aside for further evaluation.

Once your return has been set aside for further evaluation, one of two things will happen. Either the evaluator will accept your return and consider it filed, or you will receive a phone call to set up an appointment to review your return. If you receive a phone call, be sure to call a Santa Monica tax attorney to meet with you before the appointment with the IRS evaluator. The Santa Monica tax attorney will also go with you to the appointment to ensure that you are represented in your audit process.

How a Santa Monica Tax Attorney can Help

A Santa Monica tax attorney is well versed in the knowledge of the IRS and how the agency operates. With considerable knowledge of tax returns, a Santa Monica tax attorney can help you to fight the audit by preparing the papers to refute any discrepancies in your paperwork. You can help your Santa Monica tax attorney by providing him or her with all of the papers that are related to the tax return in question. This is why it is a good idea to hold your individual tax returns for several years before discarding them.

Your Santa Monica tax attorney will be your voice at the audit and will direct you on how to answer any questions that are directed at you. Full disclosure is necessary in order to prevent any unnecessary fines or penalties for incorrect filings. By placing trust in your Santa Monica tax attorney, you are enabling yourself to seek out the assistance that you need when faced with such a daunting task. The tax experts know how to handle the situations they are presented with and as such should be one of your first contacts.



How a New York Tax Attorney Can Help with Multiple Delinquent Filings

Monday, October 3, 2011

How a New York Tax Attorney Can Help with Multiple Delinquent Filings

Sometimes it is easy to overlook certain liabilities but missing a return on filing taxes is a big deal. Once you have missed a return, the IRS can legally file a substitute for return – known as an SFR – on your behalf. Once the IRS does this, it is considered that your return is filed and your tax liabilities are now due. One important note that your New York tax attorney will tell you is that when the IRS files on your behalf, your liabilities are greater than they would be if you were to file because the IRS does not implement any deductions that you would be eligible to claim. If you are missing or delinquent on multiple filings, your New York tax attorney can help you file these taxes in a way that will not raise flags with the IRS. Your New York tax attorney can help you regardless of whether your taxes are personal or business taxes.

What happens if I do not file my Taxes?

If you do not file your taxes, your New York tax attorney will advise you of the steps that the IRS will take. Once you have missed a return, the IRS will file a substitute for return to calculate any and all tax liabilities. The IRS can then start the process of collection on the taxes regardless of whether you filed or not. Your assessed liability is likely to be much greater due to the fact that none of your deductions were taken. You want to avoid delaying your returns as much as possible in order for your New York tax attorney to fight your case for you.

Even if you have missed several years worth of tax returns, you can still file them if they are within three years of the original due date. You can contact a New York tax attorney to aid you in either reducing liability or in filing your late returns.

What are the Penalties in Filing Multiple Delinquent Tax Returns?

If you are consistently late in filing your tax returns and you have a liability, you will be charged interest on top of the principal that you already owe. Your New York tax attorney will inform you that any interest will continue to accumulate over the life of the liability. If you do not pay your outstanding liabilities you will be charged with a tax lien which will require your New York tax attorney to work harder on your behalf. Many other drastic actions may be taken to satisfy outstanding liabilities including seizure of personal or business assets which will then be sold to pay off debts. You can hire a New York tax attorney to fight the charges, but it is up to you to ensure that your attorney has all of the necessary paperwork to prove that your liabilities are less than the IRS is claiming them to be.

What Happens Next with my New York Tax Attorney?

Once you receive a notice of collection on your outstanding liabilities, you will want to have your New York tax attorney file your actual returns for you to ensure that the correct figures are calculated by the IRS. Your New York tax attorney is qualified to handle all issues presented with your multiple delinquent filings



Let a Florida IRS Tax Attorney help you with Offshore Accounts

Monday, October 3, 2011

Let a Florida Tax Attorney help you with Offshore Accounts

If you are one of many people who have offshore accounts to protect your income, you will need to understand that the IRS has specific requirements in regards to the disclosures surrounding the accounts. If you live in Florida and have to take action to disclose your offshore accounts to avoid IRS penalties, you should contact a Florida tax attorney to help you file the necessary paperwork. A Florida tax attorney will be well versed in tax law, and especially with the new disclosure act – 2011 Offshore Voluntary Disclosure Initiative – created by the IRS as a tax amnesty offering. Rather than face severe penalties, your Florida tax attorney can help you disclose the income in these accounts without any further action taken by the IRS.

Why do People use Offshore Accounts?

A Florida tax attorney will understand that there are many reasons why a person would set up an offshore account. For one, it is easier to invest money in foreign countries and corporations with an offshore account as there are limited restrictions. Another common reason why people use offshore accounts is to avoid paying taxes. However, any money that you are paid as part of a job is reported to the IRS through your W2 forms. The result is a substitute for return filed in your name by the IRS should you not disclose your income taxes that year. Your Florida tax attorney will advise you on the best way to disclose these funds to the IRS if you have an offshore account.

What are the Penalties for not Claiming Offshore Accounts?

If you neglect to claim the money in your offshore accounts, you will find that your Florida tax attorney may not be able to help you out of the situation. There are severe penalties attached to not disclosing offshore accounts, some of which include jail time. The penalties range from fines to incarceration, depending upon the level of money not disclosed and if this is a first occurrence or one of many. Here are some of the penalties that your Florida tax attorney wants you to know about in case you do not claim your offshore accounts.

  • You can face fines of up to $100,000 or 50 percent of the balance that is held in the offshore accounts. This is compounded for each year that you have held the offshore account without reporting it. This means that your Florida tax attorney could be trying to help you settle hundreds of thousands of dollars in debt.
  • If the above penalty is not enough to deter you, you may also face a penalty for 75% of your unpaid tax liability due to offshore accounts.
  • Criminal charges may be filed for fraud, failure to file taxes, filing of a false return. Each of these criminal charges can come with jail time up to 10 years of prison and several thousands of dollars worth of fines.

With all of these possible outcomes, it is no wonder that you will want your Florida tax attorney to help you file a disclosure of your offshore accounts. Your Florida tax attorney is here to help you abide by the IRS statutes in filing a disclosure. Contact your attorney today to get the ball rolling in order to avoid severe criminal charges and fines.