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Why Hire a Tax Attorney?

Dealing with the complexities of taxes can be daunting for individuals, as it involves intricate details, tedious paperwork, and a deep understanding of the ever-changing tax regulations. From filing tax returns accurately to organizing documents and understanding what authorities demand, the process can certainly be overwhelming. 

This is where the expertise of a tax attorney becomes invaluable. In this article, we further answer the question, “Why hire a tax attorney?” Read on to learn more! 

 

1. Expertise in Tax Law

Tax attorneys have undergone extensive training and education to become well-versed in the world of tax laws, both state and federal regulations. Their expertise enables them to navigate the complexities of tax laws effectively, making them invaluable advisors for individuals facing tax-related issues. 

Furthermore, tax attorneys are committed to staying current with the ever-evolving changes in tax laws, ensuring clients receive up-to-date advice and representation. By staying informed on updates and changes in tax laws, tax attorneys play a vital role in protecting taxpayers’ rights and promoting compliance with the latest tax regulations. 

 

2. Handling Audits and Disputes

Audit Representation

Tax attorneys play a crucial role in representation, acting as your advocate when dealing with tax matters. Having an attorney by your side when navigating audits or resolving disputes with the IRS can make a huge difference. As legal professionals equipped with vast knowledge, tax attorneys can ensure your case is presented effectively, your interests are safeguarded, and your rights are well protected. Tax attorneys are also skilled negotiators who can articulate your position clearly and find the most favorable outcome for your specific case. 

Why Hire A Tax Attorney? A man in a suit sitting in front of his lap top

 

Expert representation can give you peace of mind, especially during disputes with the IRS, by ensuring that your issues are handled by the most competent party who knows the system and is committed to defending your interests. 

 

Resolving Tax Disputes

Tax attorneys don’t possess any special negotiating powers compared to individual taxpayers. However, their true strength lies in their comprehensive knowledge of tax laws, awareness of available options for various tax issues, and the ability to evaluate which course of action is most suitable for resolving disputes. 

Equipped with expertise and experience, they have the tools to effectively navigate tax disputes, potentially reducing penalties and negotiating favorable resolutions, such as payment plans. Tax attorneys can curate and present compelling arguments focused on pursuing the most beneficial outcomes for resolving tax-related conflicts. 

 

3. Tax Planning and Compliance

Why Hire A Tax Attorney? Woman sitting at desk with her laptop open and calculator

Proactive Tax Planning

Proactive tax planning offers a strategic advantage by allowing you to assess your financial situation well before tax deadlines loom large. When you engage with a tax attorney, they can conduct a thorough review of your tax obligations, pinpoint potential issues, and devise effective strategies to minimize tax liabilities while maximizing savings. Whether you’re an individual or a business owner, tax attorneys can provide valuable insights into structuring, leveraging tax credits and deductions, and implementing strategies to reduce overall tax burdens.

By embracing proactive tax planning with the guidance of experienced tax attorneys, you gain peace of mind, knowing that you’re actively managing your tax affairs to achieve optimal outcomes. 

 

Ensuring Compliance

Failure to comply with tax regulations can lead to audits and other tax-related problems, resulting in penalties, fines, and even levies. Tax attorneys possess the expertise to guide on compliance matters, working closely with clients to assess their tax situation and develop strategies for adherence to relevant tax laws. 

They offer ongoing support and advice to keep clients informed about changes in tax regulations, enabling them to adjust their tax strategies accordingly. With the assistance of tax attorneys, individuals and businesses can mitigate risks and avoid costly mistakes, as well as ensuring compliance with tax laws. 

 

4. Saving Time and Money

Despite the associated costs, hiring a tax attorney can be a worthwhile investment. The expertise they bring to the table can save you significant time and money in the long run. For example, attempting to navigate complex tax issues and IRS correspondence without professional guidance can lead to more costly mistakes and severe penalties. 

Moreover, consider the time and energy required to thoroughly understand IRS letters, prepare accurate responses, and engage in potentially prolonged back-and-forth correspondence. Any missteps or inaccuracies could result in further complications, delays, and additional penalties, making the overall situation worse.

 

Why Hire A Tax Attorney? Spread of 100 dollar bills

By enlisting the services of a tax attorney, you gain a knowledgeable ally who can swiftly identify the crux of the problem, formulate an effective response, and pursue the most suitable solution to resolve the case. Their expertise eases the process, minimizing the risk of errors and potential penalties, ultimately saving you valuable time and resources.

End Note

So, why hire a tax attorney? For many good reasons! Firstly, you gain access to a professional legal team with extensive knowledge and expertise in tax laws and regulations. Their deep understanding of the intricacies allows them to effectively navigate the process and advocate for the best possible outcomes tailored to your situation.

Secondly, enlisting the services of a tax attorney can save you valuable time and potentially avoid costly penalties or further escalation of the issue. Their guidance can ease the process, minimize the risk of errors, and prevent complications that could arise from attempting to handle tax matters independently.

With the ample benefits that come with hiring a tax attorney, it’s undoubtedly the most effective choice when facing tax-related concerns. 

Opt for Greenberg Law Group P.A. for the best tax attorney in town! We’re ready to assist you with your tax-related concerns! Contact us today, and let us help you right away. 

 

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Can I Get Audited?

Facing an IRS audit can be a nerve-wracking experience, stirring up feelings of fear and anxiety. However, it’s essential to understand that audits serve a purpose and are conducted for specific reasons. So, to address the central question of this article, “Can I get Audited?” the answer is yes, but typically only if certain triggers prompt the IRS to investigate your tax return. Let’s explore this topic further to gain a better understanding.

 

What Triggers an IRS Audit? 

Common Audit Triggers 

If you are facing an audit, specific factors have likely triggered the IRS’s attention. These factors can include having a high income, engaging in risky financial activities, claiming unusual deductions, failing to file taxes, or discrepancies in the information provided on your tax returns. In general, anything that can raise a red flag could prompt an audit. 

 

Random Selection 

In some cases, individuals may undergo an audit purely due to random selection as part of the IRS’s efforts to maintain tax compliance across the board. It’s simply a routine measure to ensure taxpayers meet their obligations accurately and fairly. If you find yourself in this situation, there’s generally no need to worry, as it does not necessarily indicate any wrongdoing on your part.

 

Types of IRS Audits 

Understanding the different types of IRS audits is crucial, as each serves a distinct purpose and carries varying levels of severity. Here’s a breakdown of the three main types of IRS audits:

1. Correspondence Audit 

This is the most basic type of audit, conducted entirely by mail. The IRS sends notification letters requesting specific documentation or clarification on certain items reported on your tax returns. Responses are typically submitted by mail, and the audit is resolved through correspondence.

Learn more about the details by reading our article about IRS Audit Letters. 

 

2. Office Audit 

Office audits are more comprehensive than correspondence audits. In an office audit, you meet with an IRS officer in person at a local IRS office. The auditor reviews specific aspects of your tax returns and may request additional documentation or explanations. 

 

3. Field Audit 

The most extensive type of audit is conducted at your home or place of business. Field audits require face-to-face interactions and involve detailed examinations beyond the scope of correspondence or office audits. This type of audit typically occurs for individuals with high-income levels and complex tax issues

 

can i get audited

 

How to Reduce Your Risk of an Audit 

There’s no way of guaranteeing you won’t get audited by the IRS, but you can take steps to reduce the likelihood of being selected for one. Here’s how:

 

1. Accurate and Complete Tax Returns 

First, ensure you file your tax returns as completely and accurately as possible. By filing complete and accurate tax returns, you demonstrate transparency and compliance, reducing the likelihood of being targeted for an audit.

2. Be Cautious with Deductions and Credits 

Being realistic and honest with deductions and credits is essential to minimize the risk of triggering red flags during IRS review. While it can be tempting to maximize deductions to reduce tax liability, exaggerating expenses without valid eligibility can lead to scrutiny and audits.

3. Keep Good Records 

Good record-keeping serves dual purposes: it ensures accurate tax reporting and provides evidence to support your claims in case of an IRS audit. Maintain records, such as receipts, invoices, bank statements, and any other relevant documents, organized and easily accessible. 

 

 

What to Do If You Get Audited 

Don’t Panic 

If you receive an audit letter, remain calm and avoid panicking. While it’s natural to feel anxious, panicking won’t help resolve the situation. Take the time to read the letter carefully, understanding what aspects of your tax return the IRS is reviewing and what documents they’re requesting. Once you have a clear understanding of the situation, you can begin to prepare accordingly.

 

Gather Your Documentation 

Make sure to organize all the documentation requested by the IRS. This may include receipts, bills, employment documents, and investment statements. Once you have everything in place, double-check its accuracy and completeness and respond promptly. Remember, it’s of the utmost importance that you respond on time. Failure to meet deadlines can lead to further complications.

 

Consider Professional Help 

Dealing with an IRS audit demands careful and precise handling to resolve the issues effectively. Understanding the complexities of the audit process and gathering all requested information can be daunting. To ensure accuracy and thoroughness, consider seeking professional help. Tax attorneys know the ins and outs of IRS audits and can provide tailored responses to various audit scenarios.

 

can i get audited

 

How Greenberg Law Group P.A. Can Help 

Our team at Greenberg Law Group specializes in navigating the complexities of tax law for individuals and businesses alike. With tailored solutions to various tax-related issues, our team is dedicated to safeguarding your financial interests and addressing your tax concerns with professionalism and expertise. From deciphering IRS correspondence to crafting effective responses, we’re here to assist you every step of the way.

Once we receive your case, we conduct a thorough evaluation to understand the problem and identify the best solutions. We create a tailored action plan and work diligently until resolution is achieved, whether through completing the action plan or reaching an agreement. We’ll also provide you with valuable advice on preventing future IRS issues. 

Call us or take a quick assessment to set up a free consultation

 

End Note 

So, to answer the question, “Can I get audited?” Yes, you can. While the prospect of an IRS audit can be intimidating, it’s essential to remember that audits are conducted to ensure tax compliance and fairness across all taxpayer groups. By understanding the audit process and being prepared, you can confidently navigate an audit and minimize any potential negative outcomes. 

If you’re facing an audit or have concerns about your tax situation, don’t hesitate to contact us for professional assistance to help you through the intricacy of tax-related matters.

 

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Notice of Federal Tax Lien: What it Means

As the enforcer of tax laws in the country, the IRS has various methods to ensure taxpayers fulfill their obligations. One such mechanism is issuing a Notice of Federal Tax Lien (NFTL). But what exactly does a Notice of Federal Tax Lien entail? What are its implications, and what are your options if you receive one?

In today’s blog, we’ll answer these questions, providing clarity on the significance of a Notice of Federal Tax Lien and offering guidance on how to avoid it or address it if you find yourself facing one.

 

What is a Federal Tax Lien? 

Definition and Implications 

A federal tax lien is a tool employed by the IRS, a body that represents the government, to secure outstanding tax debts. It involves filing a legal document notifying the public and creditors that an individual owes unpaid taxes and that the government has a legal claim against the taxpayer’s property, including financial assets, to secure the outstanding debt.

notice of federal tax lien

If an individual has unpaid taxes and fails to do anything about it, the IRS may serve a federal tax lien. When this happens, your property, credit, and financial standing become attached to the lien, which makes it possible under the law for the government to seize after several notices and opportunities to settle the debts. This will apply to your current and future assets.

 

How a Tax Lien is Different from a Levy

The terms “tax lien” and “levy” are often confused, but they refer to distinct actions taken by the IRS regarding unpaid taxes. A tax lien establishes the government’s legal claim against a taxpayer’s property, while a levy is the actual tangible action of seizing assets. 

For instance, the IRS may file a federal tax lien to inform taxpayers and creditors of the government’s legal claim on the taxpayer’s property. However, if the taxpayer fails to respond to notices and opportunities to settle the debts, the government may proceed with levying those assets.

notice of federal tax lien

The Notice of Federal Tax Lien 

What Triggers a Notice? 

The IRS may file a Notice of Federal Tax Lien when a taxpayer fails to settle their outstanding tax liabilities after receiving notifications and demands for payment. 

The IRS typically reviews the amount owed, puts it in the books, and sends a notice asking for the payment. If individuals don’t respond and act upon the request, the IRS can file a notice of federal tax lien. This filing is commonly triggered when an individual owes $10,000 or more in unpaid taxes or when a business owes $25,000 or more.

 

Understanding the Notice 

The Notice of Federal Tax Lien typically includes the taxpayer’s full name, address, and identification number, such as social security number or employer identification Number. It specifies the type of tax owed, such as income or payroll tax, the tax period(s) involved, and the total amount of unpaid tax debt, including any accrued interest and penalties. The lien also includes a legal statement indicating that a federal tax lien has been filed and attached to the taxpayer’s current and future property and financial assets. 

To avoid escalating the situation, taxpayers must address the notice promptly. Ignoring a Notice of Federal Tax Lien can have severe consequences for the taxpayer. 

 

 

Consequences of a Federal Tax Lien 

Impact on Assets 

Your assets, including personal property and financial holdings, are profoundly affected by the notice. As we’ve discussed, when you fail to resolve the outstanding debt despite receiving multiple notices and opportunities, the government has a legal claim against the taxpayer’s property.

If you’re a business owner, any business properties, equipment, inventory, and accounts receivable owned by the company are also attached to the lien. Furthermore, it’s important to note that filing for bankruptcy may not necessarily provide relief from a federal tax lien. 

 

 

How to Respond to a Notice of Federal Tax Lien 

notice of federal tax lien

 

Immediate Steps to Take 

If you receive a Notice of Federal Tax Lien, it’s crucial to take immediate action to address the situation and prevent it from escalating. Here are some steps to follow:

 

  • Carefully review the notice to verify the accuracy of the information provided, including the amount owed, tax periods involved, and other relevant details.
  •  If any discrepancies or errors are found on the notice, or if you have additional questions, contact the IRS immediately to clarify or resolve the matter.
  •  Consider consulting a tax attorney to help navigate the legal implications of the notice and develop an action plan tailored to your specific situation.
  • Lastly, respond timely. Failure to respond to the notice within the specified timeframe can lead to further enforcement actions.

 

Options for Resolution 

To pay off the entire debt. Once the total amount is settled, the IRS will typically lift the lien within 30 days. However, if full payment is not feasible, taxpayers have several other options:

Payment Plans (Installment Agreement): Taxpayers can request an installment agreement, allowing them to pay the debt gradually through scheduled payments over an extended period.

Offer in Compromise: If you meet the eligibility criteria, you may qualify for an Offer in Compromise, enabling you to settle your tax debt for less than the total amount owed. This option is typically available to individuals experiencing financial hardship.

Disputing the lien: Taxpayers have the right to dispute the Notice of Federal Tax Lien if they believe there are errors or inaccuracies in the information provided. Proper documentation and evidence must be presented to support the case.

Withdrawal or Subordination: In certain circumstances, you may be able to request the withdrawal or subordination of the tax lien. Withdrawal removes the lien from the public record, while subordination allows creditors to move ahead of the IRS, making it easier for taxpayers to get a loan. However, these options do not absolve you of the debt; you are still responsible for settling the outstanding amount.

 

 

Preventing Future Tax Liens 

Best Practices for Tax Compliance 

To steer clear of tax troubles such as receiving a Notice of Federal Tax Lien, it’s vital to stay proactive with your tax responsibilities. Start by filing your tax returns accurately and punctually each year. Establish good recordkeeping practices by maintaining organized records of all tax-related documents, income sources, deductions, and payments.

This ensures you have the necessary information to file accurate returns and support claims if needed. Moreover, stay informed about updates or changes to tax laws, regulations, and filing requirements that may impact your situation. Regularly review guidance from the Internal Revenue Service (IRS) and consult with a tax professional when necessary. 

Proactively addressing changes can help you maintain compliance and avoid potential issues.

 

How Greenberg Law Group P.A. Can Help 

When navigating tax-related matters, seeking expert assistance can make all the difference. At Greenberg Law Group, we specialize in various tax issues, including negotiation, representation, and compliance. Whether you’re dealing with tax debt or seeking guidance on tax laws, our team is highly experienced and equipped to assist you. We’re committed to being your trusted partner in navigating the complexities of tax and achieving the best possible outcome for you!

 

 

End Note 

Dealing with a Notice of Federal Tax Lien from the IRS is a serious matter that demands immediate attention. Ignoring outstanding tax debts can lead to the IRS filing this legal claim against your present and future assets, including real estate, personal property, and financial accounts.

If you find yourself in this situation, there are options available to resolve the issue successfully. It is crucial to respond accurately and on time to any notices or requests from the IRS. Explore alternatives such as installment agreements, offers in compromise, or lien withdrawal/subordination in eligible cases. Additionally, taking proactive steps to avoid receiving a lien in the first place, such as staying informed about changes in tax laws and maintaining well-organized records, can help prevent future issues.

Seeking assistance from a tax attorney can provide valuable support in understanding, preparing, and responding to complex tax matters.

Contact us at Greenberg Law Group for the most comprehensive and trusted tax attorney in town!

 

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Can the IRS Take my Home?

Getting in trouble with the authorities, especially the IRS, isn’t a pleasant experience. Beyond the complexity of processes, individuals who fail to address their tax debts may face hefty fines, severe legal consequences, and potentially losing their homes. 

We understand the stress of knowing that you could lose your home and how devastating that could be for you and your family. While the IRS can technically seize your house under the law, it’s also important to remember that the IRS doesn’t immediately take assets upon missing deadlines. 

There are stages that the authority must follow that involve sending notices and providing opportunities and options for taxpayers to address their debts. That’s why it’s of utmost importance to understand all your options so you can manage your debts effectively and prevent further problems. 

In this article, we’ll explore the question, “Can the IRS take my home?” and discuss IRS seizures, along with preventive measures to avoid reaching the final warning of intent to levy. 

 

The Power of the IRS in Tax Collections

The Internal Revenue Service (IRS) is the legal authority in the United States responsible for collecting taxes and overseeing all tax-related actions. This includes managing tax liens, levying assets, and pursuing other legal measures to enforce the country’s tax laws. Whether you’re an individual taxpayer or a business entity, you’ll interact with the IRS to fulfill your tax obligations. 

Of course, engaging with the IRS doesn’t imply trouble; instead, it’s a necessary step in addressing your tax responsibilities. Taxpayers will only come under IRS scrutiny when they’ve missed their tax obligations, engaged in unlawful practices, or refused to cooperate.

 

The Process of IRS Seizure

As the legal entity responsible for tax enforcement, the IRS adheres to specific mechanisms and processes to ensure transparency and fairness in implementing tax laws for citizens. Therefore, when it comes to IRS seizures, there are obligatory steps that the authorities must follow, including informing taxpayers beforehand.

 

Issuance of a Federal Tax Lien

A federal tax lien is a legal claim by the government to seize a taxpayer’s assets, encompassing personal and financial holdings. Such a claim is issued in response to unpaid tax debt after the taxpayer has received notices and opportunities to settle the outstanding amount.

It’s crucial to understand that a federal tax lien doesn’t result in an immediate seizure of assets. Instead, it serves as a notification, indicating the government’s legal claim to the taxpayer’s assets if the debts remain unpaid. This highlights the gravity of the situation and the importance of addressing tax obligations to prevent potential asset seizures.

 

Can the IRS take my home? Short sale for sale sign in foreground, with residential home in the background

 

Final Notice of Intent to Levy

The final notice of intent to levy is one that taxpayers should pay close attention to and respond promptly, as it serves as a final warning and a notification that the government intends to seize your assets. Typically, the IRS provides a 30-day notice period from the date of the Final Notice before initiating the levy. This window allows taxpayers the opportunity to take corrective action. 

The notice outlines the specific assets the government intends to seize and includes a deadline. More importantly, it presents options for taxpayers to prevent the levy, such as entering into an installment agreement or appealing the decision through a collection due process (CDP). Being proactive during this notice period is crucial for individuals to explore and pursue the available alternatives to avoid your assets being seized. 

 

Can The IRS Take My Home? 

The IRS has the legal authority to seize assets, including your home, but only under certain circumstances. Remember that taking your assets is the last option that the IRS will take if taxpayers continue to fail to pay off their debts. 

 

Significant Tax Debt and Non-Compliance

If you have a substantial debt and consistently miss payment deadlines while disregarding IRS notices, particularly the Final Notice of Intent to Levy, this constitutes a severe form of non-compliance. Such actions increase the likelihood of your home being seized by the IRS. 

 

Exemptions and Protections for Taxpayers

Exemptions and protections for taxpayers are in place to offer relief and safeguard specific assets in certain situations. If you’re unable to pay your debts in one lump sum, you have options, such as entering into a payment agreement with the IRS, allowing more time to manage and settle your debts effectively. Additionally, taxpayers have the right to appeal certain IRS actions through a CDP hearing if they disagree with decisions, providing an opportunity to present their case and explore resolutions.

Furthermore, exemptions like bankruptcy exist, and filing for it can temporarily halt IRS collection efforts.

 

Can the IRS take my home? Man and woman couple reading tax documents with expressions of distress

 

Options to Prevent Home Seizure 

The most effective strategy to prevent home seizures is to settle debts promptly. However, if immediate settlement is not feasible, there are alternative approaches. Respond swiftly to IRS letters and maintain open communication with them. Take the time to comprehend the available options, such as payment plans and offers in compromise, and assess which aligns best with your circumstances.

Navigating through these processes can be intricate. Hiring legal assistance, particularly from a tax attorney, can help you choose the optimal option based on your unique situation.

 

End Note

Avoiding trouble with the authorities, especially the IRS, is a common goal for everyone. It’s a complex and costly process that demands significant time and effort. The question: “can the IRS take my home?” is a natural concern when dealing with tax issues. 

As outlined in this article, while the IRS has the legal authority to seize homes, they are obligated to provide taxpayers with warnings and options for resolving their debts, considering individual circumstances and challenges. In essence, seizing assets, including homes, is considered a last resort, employed only when all available options have been presented without resolving.

If you’re facing any tax issues with the IRS and need assistance in resolving your concerns or clarifying questions, don’t hesitate to reach out to us at Greenberg Law Group, P.A. Our team of experts is ready to provide answers and guide you through the complexities of U.S. tax laws.

 

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What is a Wage Levy?

When it comes to tax obligations, the IRS has the authority to take severe measures against those who fail to comply. One such action is a levy, where the IRS can legally seize assets, including wages. In this blog, we’ll answer the question ‘What is a wage levy?’, how to respond if you’re facing one, and most importantly, how to prevent it from happening in the first place. Let’s get started.

 

What is a Wage Levy?

A wage levy is a legal action the IRS takes to address unpaid taxes directly from an individual’s wages. The process involves the IRS issuing a wage levy to the taxpayer’s employer, instructing them to withhold a portion of the taxpayer’s wages or salary and remit it to the IRS to settle the outstanding tax debt. This continues until the debt is cleared, alternative payment arrangements are made, or the levy is lifted.

This action is legally mandated by the IRS to ensure compliance with tax laws. 

 

The Process of a Wage Levy

   1. IRS Notification Process

Before resorting to levies, the IRS follows a series of steps to notify taxpayers and offer opportunities to resolve their overdue taxes. Initially, taxpayers receive notifications reminding them of their outstanding tax debt and presenting various repayment options, such as installment plans, Offer in Compromise, or appeals through a Collection Due Process (CDP) hearing. 

If the taxpayer takes no action, the IRS issues a Final Notice of Intent to Levy, serving as a final warning to taxpayers. This notice signals the IRS’s intent to seize taxpayer assets if immediate action is not taken to address the outstanding tax debt.

 

What is a wage levy? Urgent notice from IRS about their rights to seize property

 

    2. Employer’s Role in a Wage Levy

When the IRS issues a wage levy to an individual’s employer, the employer is legally required to comply with the instructions outlined in the levy notice. This involves informing employees about the levy and the amount withheld from their wages. 

Additionally, the employer must remit the withheld funds to the IRS according to the specified timeline provided in the notice. To ensure compliance, employers may need to complete certain documentation related to the levy, such as Form 668-W. Employers must adhere to IRS regulations and deadlines throughout the wage levy process to avoid facing penalties or legal consequences.

 

   3. Calculation and Amount 

When the IRS initiates a wage levy, it considers multiple factors such as the taxpayer’s income, filing status, dependents, and standard deduction. Additionally, there are limits on the amount the IRS can levy, typically to ensure that the taxpayer retains enough income for essential living expenses. So essentially, the IRS aims to implement a wage levy that aligns with taxpayers’ ability to pay while ensuring they can afford necessities.

 

Impact of a Wage Levy 

The impact of a wage levy is detrimental to anyone. Financially, a wage levy can substantially reduce the taxpayer’s income, as a portion of their wages is withheld by their employer and sent directly to the IRS to satisfy the tax debt. This reduction in income can lead to financial strain and potential hardships.

In the long term, wage levies can damage credit scores and financial reputations, making it hard to access loans or credit cards. Furthermore, the strain on relationships between employers and employees can create tension in the workplace and even threaten job security. All of these factors contribute to immense stress for those affected. That’s why responding to IRS notices effectively and promptly is crucial. 

 

Stressed man sitting at a desk with laptop and scattered tax papers. background shows a shelving unit with books

 

How to Respond to a Wage Levy 

Dealing with taxes and the IRS can be incredibly complex and overwhelming. When faced with a wage levy, seeking professional help is crucial. With the assistance of experts, you can ensure you respond appropriately to the situation, maximizing your chances of achieving the best possible outcome. 

While paying off the debts entirely is ideal, it may not always be feasible. Fortunately, there are various options available to resolve the issue, such as arranging installment agreements, negotiating an Offer in Compromise, claiming economic hardship to reduce payments, or having your debt classified as Currently-Not-Collectible. 

Each option has benefits, and determining the best course of action for your circumstances can be challenging. That’s where a tax attorney can be invaluable. They can provide detailed explanations of each option and help you choose the one that best suits your needs.

 

End Note

So there you have it–the answer to the burning question: what is a wage levy? It’s essential to understand that the IRS holds the legal authority to seize your assets, including your wages if you fail to respond to their notices and settle your debts using the options provided. We sincerely hope you never find yourself in this situation. 

However, if you do, it’s crucial to comprehend the process and how to respond effectively. Partnering with a professional tax attorney can significantly improve your chances of navigating a wage levy successfully and achieving the best possible outcome for your situation.

If you’re facing tax-related challenges or have concerns about a wage levy, don’t hesitate to reach out to us at Greenberg Law Group, P.A. Our team of experienced tax attorneys has been assisting clients in dealing with the IRS for over 20 years, and we’re here to help you too.

 

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What Happens If I File My Taxes Late in Florida?

Filing your taxes on time is crucial for many reasons. For one, it prevents you from getting hefty fines and potential legal consequences. Moreover, it maintains a positive standing with the authorities, affirming your commitment as a responsible citizen. And lastly, certain tax deductions hinge on filing deadlines, emphasizing the time-sensitive nature of eligibility criteria. This proactive approach fulfills legal obligations and provides peace of mind, knowing you’ve done your part to prevent potential issues.

 But, of course, we all make mistakes, and missing deadlines can happen to anyone. So, what happens if I file my taxes late? Discover the answer by continuing to read.

 

Understanding Tax Deadline in Florida

In the United States, including Florida, the standard tax filing deadline as Tax typically falls on April 15th each year. However, if April 15th happens to be a weekend or a legal holiday, the filing deadline is extended to the next business day.

It’s also good to be aware that external factors, such as natural disasters or unforeseen events, can change the tax deadline. In such circumstances, the IRS may announce adjustments and extend the filing deadline, providing taxpayers additional time to meet their obligations.

illustration of a tax paper and calculator with a light blue background

 

What Happens If I File My Taxes Late?

To answer the question, “What happens if I file my taxes late?” let’s take a look at the different things that can occur. Failing to file your taxes on time will result in penalties, interest charges, and other consequences.

 

Penalties

Failure-to-File Penalty

A failure-to-file penalty will be imposed for those who miss the deadline for filing federal income taxes. This penalty is calculated by taking a percentage of the due taxes for each month (or part of a month) that your tax return is overdue. Typically, this penalty rate is 5%. The fine won’t go over 25% of your unpaid taxes. 

Failure-to-Pay Penalty 

The failure-to-pay penalty is imposed on taxpayers who fail to pay their federal income taxes on the deadline. The fine is based on how long your overdue payment remains unpaid. However, unlike the failure-to-file penalty, this penalty is set at 0.5% of the due taxes. Similar to the failure-to-file penalty, the maximum limit is capped at 25%.

 

Interest Charges 

The interest on your unpaid taxes is determined based on the current federal interest rate. The formula for calculating daily interest is Principal Amount × Daily Interest Rate. Keep in mind that interest accrues daily, and it’s compounded. This means that the interest is calculated on the principal (the amount of unpaid tax) and the accumulated interest from previous days. 

 

Other Consequences 

Beyond the penalties for missing tax deadlines, there are additional challenges that can affect taxpayers:

Late tax filings can also cause delays in receiving tax refunds. Those expecting a refund may need help accessing their funds if they file after the deadline. Additionally, late filings can create an inaccurate financial snapshot, making it difficult to plan for future expenses, investments, or other financial decisions.

 

man sitting at desk looking at tax documents and his phone

 

Options for Taxpayers Who Filed Late

The first step is to file your tax return as soon as possible. The longer you wait, the more penalties you’re going to accrue. To prevent future late tax filings, consider establishing a payment plan. This approach assists in fulfilling your tax obligations in a structured manner, avoids severe penalties, and maintains compliance with tax regulations.

Furthermore, utilize professional assistance from tax attorneys, such as those at Greenberg Law Group, who possess expertise and experience navigating tax matters. We’ll ensure thorough compliance and offer valuable advice to address your specific tax concerns effectively.

 

End Note

Understanding the importance of timely tax filing is crucial to prevent potential complications. What happens if I file my taxes late? Filing taxes late can lead to substantial issues, including hefty fines, penalties, legal consequences, and delays in other benefits like tax refunds. To navigate the intricacies of tax law and avoid late filing and associated penalties, seeking the assistance of a tax professional is advisable. 

At Greenberg Law Group, P.A., our expert tax attorneys are ready to partner with you on all your tax matters. Contact us for reliable and knowledgeable assistance!

 

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Can I Add Tax Owed to an Existing IRS Installment Agreement?

For many individuals, paying off entire debts in one go isn’t an option. Fortunately, there are alternatives, and the IRS installment agreement is one such solution. This approach allows taxpayers to strategize their debt payment, making it more manageable and preventing additional financial strain and further legal troubles with the authorities, such as levies

Now, what about owing additional taxes and incorporating them into an existing IRS installment agreement? The good news is that it’s possible. However, the feasibility depends on many factors. Continue reading to learn more about the details of installment agreements, eligibility criteria, the process of adding more tax owed to an existing IRS installment agreement, and more! 

 

Understanding IRS Installment Agreements 

An IRS installment agreement is a payment plan that allows taxpayers to settle their debt over time. The payment plan offers both short-term and long-term payment options. Short-term agreements involve clearing the debt within 180 days, while long-term agreements can extend up to 72 months.

To qualify for a short-term payment plan, individuals must have a total balance of less than $100,000 in combined tax, penalties, and interest. For a long-term payment plan, individuals with a combined tax liability, penalties, and interest of $50,000 or less and businesses with $25,000 or less in combined debt meet the eligibility criteria.

You can apply for these installment payments online

Note that interest and late-payment penalties will continue to be accrued on the unpaid debt during the installment agreement. 

Clipboard with an IRS Installment Agreement Request document and pen

 

Adding New Tax Owed to an Existing IRS Installment Agreement 

While the IRS typically doesn’t allow taxpayers to have two separate installment agreements, adding a new tax debt to an existing installment plan is possible. However, taxpayers must act swiftly before the IRS assesses the new tax balance and potential default occurs, triggering enforcement actions.

 

Conditions for Adding Debt 

The IRS evaluates various factors when determining eligibility for incorporating new tax debt into an existing agreement. These considerations encompass the individual’s financial situation, payment history, total debt amount, and compliance with tax filing obligations.

Besides the specific rules and restrictions on different types of installment agreements, the IRS may also impose limitations based on taxpayers’ financial capabilities and history of compliance. Moreover, how often individuals request modification can also affect approval. For example, frequent requests may end up in more scrutiny. Therefore, it’s advisable to follow the process accordingly and consult your trusted tax attorney. Their expertise can assist you in achieving the desired outcome.

Impact on Existing Agreement Terms 

Incorporating new debt into an existing agreement can affect the current terms. Adding a new debt may result in adjusting your monthly payment plan, such as the amount of payment and the total repayment agreement. The IRS will evaluate your current financial situation, taking into account the new debt, and based on that, calculate the installment payments to ensure taxpayers can meet their obligations. 

Staying informed and maintaining open communication with the IRS can help navigate these adjustments effectively.

Person working on installment agreement at a desk with a laptop and calculator

 

The Process of Modifying an IRS Installment Agreement 

Taxpayers can request the addition of new tax debt by using the IRS’s online payment agreement tool. Through this tool, you can revise the type of plan, payment amount, and payment due date. Individuals can also contact the IRS by phone or mail to set the changes. 

The documentation required depends on the nature of the modifications. Typically, the IRS may ask for documents such as tax returns, bank information, and collection information statements (Form 433-F). Additionally, set-up fees may be charged to cover the cost of providing the installment agreement. 

 

Seeking Professional Tax Assistance 

Navigating the complexities of tax laws is challenging, and errors may lead to significant issues with the authorities. That’s why seeking guidance from a tax attorney is crucial. Our expertise, legal representation, strategic planning, and proficiency in navigating tax intricacies can ensure optimal outcomes and offer peace of mind. If you require legal consultation, don’t hesitate to contact Greenberg Law Group, P.A. Our dedicated team is ready to assist you and provide the best advice for your specific situation.

 

End Note

Establishing a payment plan with the IRS is a proactive way to manage your debt and avoid potential issues. Compliance with current tax laws and maintaining open communication with the IRS are essential factors influencing the approval process if you intend to add additional debt to your existing IRS installment agreement. 

Don’t delay addressing your debt—reach out to us, and we’ll assist you in achieving the desired outcomes for your tax matters!

 

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Final Notice of Intent to Levy: What it Means

Receiving a final notice of intent to levy is a serious and urgent matter, marking your last opportunity to settle the outstanding debt before the IRS legally seizes your assets. While paying the entire debt immediately is the quickest resolution, there are alternative options if you can’t cover the total amount. 

In this article, we’ll delve into the details of the final notice of intent to levy, explore potential solutions, and discuss how seeking assistance from a tax professional can lead to a more favorable outcome. Read on to learn more. 

 

Understanding the Final Notice of Intent to Levy

The final notice of intent to levy is the IRS’s last warning, indicating their plan to seize your assets. The IRS can seize assets like cars and homes, business assets, funds in bank accounts, wages from employers, social security benefits, rights to property, and essentially anything beyond your necessities. In other words, the IRS can take almost everything, leaving you with very little. 

Before reaching this final stage, the IRS typically sends multiple notices, reminding taxpayers of their outstanding debts and offering opportunities to address the issue. The message will also outline your right to appeal under IRC Section 6330, providing taxpayers with a 30-day window to file.

Receiving this final notice is common for individuals with substantial tax debt or those who haven’t taken steps to resolve it. Acting promptly and appropriately is crucial to avoid assets seized by the IRS. 

 

Final Notice of Intent to Levy illustration with coins sitting on top of tax documents

 

Identifying a Final Notice of Intent to Levy 

A final notice of intent to levy typically includes all the basic information such as the taxpayer information (name, address, social security number, etc.), the amount owed, the tax period for which the debt is owed, payment instructions, the deadline for action, taxpayer rights, and contact information. 

The Legal Implications of the Notice 

As the official authority for tax matters in the United States, the IRS possesses the legal authority to seize assets to settle a tax debt, as outlined in IRS Code Section 6331. Failing to respond appropriately to the letter can lead to significant repercussions, including the immediate loss of assets, financial disruption, a detrimental impact on your financial reputation, and potential legal consequences such as hefty fines or even criminal charges. 

Timeframe and Deadlines 

Taxpayers must pay close attention to the various timelines and deadlines outlined in the notice. Begin by checking the notice’s date; this is the starting point for the timeline and indicates the urgency of the situation. Pay special attention to the response deadline, which may involve settling the debt or exploring alternatives, like the right to appeal (which we’ll discuss further in this article).

Adhering to these deadlines is crucial for preventing the seizure of assets and avoiding legal complications. 

 

Immediate Steps to Take After Receiving the Notice 

File tabs showing labels for tax law folder

When you receive the IRS’s Final Notice of Intent to Levy, it’s crucial to act immediately, as there are deadlines to meet.

 

Reviewing the Notice for Accuracy

Start by carefully reviewing the letter to ensure the information is accurate. If you spot any errors, your first step should be to contact the number on the notice or file an appeal. Alternatively, consider seeking professional advice to navigate the process more effectively.

Seeking Professional Assistance

If you have any uncertainties about the Final Notice, it’s advisable to consult with a tax professional. With their experience and knowledge, tax attorneys can guide you through the intricacies of tax laws.

Greenberg Law Group, P.A., specializes in all aspects of tax laws and can help you respond to the IRS’s Final Notice of Intent to Levy, ensuring the best possible outcome for your situation.

 

Possible Resolutions and Preventative Measures

Taxpayers receiving a Final Notice of Intent to Levy have several options for addressing their tax debt:

 

Immediate full payment: The quickest resolution is to pay the entire debt immediately. This stops IRS collection activities.

Installment Agreement: An Installment Agreement (IA) is negotiated with the IRS, allowing taxpayers to make monthly payments. Note that the IRS will continue to charge interest, but as long as fees are paid, asset seizure is avoided. 

Offer in Compromise: This involves settling the debt for less than the total amount owed. Applying for an Offer in Compromise is complex, so professional help can be beneficial. 

Collection Due Process Hearing: Taxpayers have the right to appeal through a Collection Due Process Hearing. You have the opportunity to discuss alternative enforcement options before levy action is taken.

CNC Status: Also known as hardship status, Currently Not Collectible (CNC) status is when taxpayers present a collection information statement. This statement demonstrates that being compelled to pay would cause financial hardship.

 

To avoid future levies, taxpayers must stay proactive with their tax returns—ensuring accurate and timely filing. Regularly reviewing and addressing IRS letters is essential to prevent issues from escalating. If struggling to pay taxes, initiate communication with the IRS to discuss and establish a payment plan. Lastly, consider engaging a tax attorney to ensure all aspects of your tax matters are handled appropriately and promptly.

 

desk full of income tax documents, calculator, binder, and pens

 

The Role of a Tax Attorney in Resolving a Levy Notice 

Navigating tax-related issues, especially when dealing with a final notice of intent to levy, is intricate and significant. Seeking the assistance of a tax law expert can not only minimize issues but often resolve and prevent tax disputes for taxpayers. If you want to avoid the complexities of managing your taxes, turn to Greenberg Law Group, P.A. We boast a team of experts ready to guide you through every step of the process. Whether it’s filing your taxes or negotiating with the IRS, we’ve got you covered!

 

End Note

Receiving a final notice of intent to levy shouldn’t be taken lightly, as the IRS holds the legal authority to seize your assets. To prevent this stage, it’s crucial to take proactive measures, including maintaining diligent tax filing practices and addressing issues early on.

However, if you do find yourself at the final notice stage, a tax attorney can guide you through this intricate process, ensuring you navigate the complexities of dealing with tax issues and the IRS effectively.

For trusted and professional assistance, reach out to our team at Greenberg Law Group, P.A. Our tax professionals are ready to provide the expertise you need. Let us know your specific situations, and we’ll ensure you receive the best available options.

 

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Our Guide to IRS Audit Letters

The IRS conducts audits to ensure that individuals and businesses fulfill their tax responsibilities accurately. The IRS audit letters are among the critical components of IRS audits, which are essential to understand for successfully navigating the audit process and preventing potential legal issues.

Given the complexities of U.S. tax laws, it’s common for individuals and businesses to find themselves overwhelmed, potentially missing crucial details related to their tax obligations. This is precisely what our dedicated team at Greenberg Law Group is all about. We provide expert guidance to individuals and businesses, ensuring that everything is noticed and minimizing the risk of encountering problems with the IRS and the law.

Now, let’s delve into the essence of IRS audit letters, exploring their key components–what they entail, what an IRS audit letter looks like, and ways to reduce the likelihood of running into problems with the authorities. 

Understanding IRS Audit Letters 

An IRS audit letter is a formal notification alerting taxpayers that their tax returns are under review. These audits comprehensively examine financial details, including income, deductions, and credits. The primary goal of an audit is to verify the accuracy of the reported information and ensure compliance with tax laws.

There are various reasons why individuals and businesses may receive IRS audit letters. The IRS may select taxpayers randomly as part of their effort to ensure tax compliance. Additionally, high-income individuals, those engaged in high-risk activities (such as high-risk investments), specific industries, non-filers, or those with discrepancies in their information may also be subject to audits.

IRS Audit Letter

What does an IRS audit letter look like? 

To gain a clearer understanding of what an IRS audit letter entails, let’s delve into its visual characteristics:

IRS Letterhead and Official Contact Information 

IRS letters include the official IRS logo and letterhead—a key sign that the communication is legitimate and not a scam. The IRS also provides their contact information, including a phone number. You can confirm the authenticity by reaching out to them directly. This ensures you are dealing with official government correspondence and not a fraudulent entity.

Taxpayer Identification and Tax Year 

In addition to name and address, taxpayers can be identified by their social security number, taxpayer identification number (TIN) or Employer ID Number (EIN), and the tax year(s) under review. Taxpayers need to check and verify the accuracy of the information contained in the IRS audit letter. If any details, like your address, have changed, promptly inform the IRS to ensure precise record-keeping.

Reference Number and IRS Employee Contact

The audit letter also includes a reference number, which you can utilize for tracking and inquiries. Additionally, it provides contact details for the assigned IRS representative overseeing the audit, including their name, phone number, and address.

IRS Important Tax Document envelope

The Key Components of an IRS Audit Letter 

Understanding the content of an IRS audit letter is crucial, as it comprises key components that demand careful attention:

1. Explanation of Issue or Discrepancy

The IRS will clearly state the reason for initiating the audit. This could stem from various issues, such as failing to report all income sources, including earnings from investments or freelance work. Other common mistakes include misrepresenting deductions, such as mixing personal and business expenses or losses. 

This underscores the importance of thoroughly understanding the diverse tax laws and identifying which ones are relevant to your specific situation.

2. Request for Additional Information

When conducting the audit, the IRS may request documentation related to the issues under investigation. These documents include receipts, bills, loan agreements, employment documents, medical records, logs, tickets, and legal papers. 

Take the time to understand the specifics of what they are asking for, organize your documents, and either mail in copies (not the originals) or bring the copies if the audit is conducted in person. Timely and thorough responses are essential to avoid delays and legal complications.

3. Deadlines and Consequences of Non-Compliance 

Responding promptly to the specified IRS deadline is of utmost importance. Failure to meet these deadlines can result in severe legal consequences, including substantial fines and legal actions. Timely compliance avoids penalties and demonstrates professionalism, leaving a positive impression on government agencies like the IRS.

Request a confirmation when using a delivery service to ensure your documents reach the IRS on time. This precautionary step helps you track the delivery, preventing potential issues if there are delays or the mail doesn’t reach its destination on time. 

How to Respond to an IRS Audit Letter

In addition to promptly providing the necessary documents and responses, there are further steps to help you respond effectively to IRS audit letters.

  • Upon receiving the letter, carefully examine the information it contains.
  • Organize the documents thoughtfully, ensuring they are clear and easy to follow. 
  • When submitting the information, double-check its accuracy and completeness to the best of your knowledge.

If there’s any uncertainty regarding U.S. tax laws or the IRS requests, consider seeking professional assistance from Greenberg Law Group. Our team will ensure that your response to the IRS letter is comprehensive, addresses any confusion, and handles legal matters appropriately. Professional support provides a well-informed and complete resolution to the audit process.

Man sitting at his desk trying to understand IRS Audit Letter

Avoiding Future IRS Audit Letters

While it’s impossible to guarantee that the IRS won’t audit you, there are several best practices you can follow to reduce the chance of an audit and ensure that your tax return is accurate and compliant:

  • Ensure the completeness, accuracy, and timeliness of your tax returns. This involves accurately reporting all sources of income and maintaining a clear separation between personal and business finances.
  • Organize and retain all your records for future reference, as evidence, and to support your claims. Moreover, stay informed about tax laws, understand their nuances, and identify which ones apply to your specific situation.
  • Consider seeking professional assistance. Have your tax return reviewed by professionals to ensure compliance with the relevant U.S. tax laws, preventing future issues with the law and the IRS.

End Note

IRS audits are initiated for various reasons, and an IRS audit letter is a formal notification indicating that your tax returns are under review. Responding with confidence, clarity, and punctuality is crucial to avoid legal consequences and fines. 

 The complexities of complying with diverse U.S. tax laws and navigating the intricacies of an IRS audit can be daunting. This is where our team at Greenberg Law Group steps in to assist. We are the experts in tax-related matters, ensuring a smooth and hassle-free tax filing experience for businesses and individuals alike. Contact us now to learn how we can be your trusted partner in navigating IRS audits and tax obligations.

 

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