Getting a letter from the IRS can shake the toughest entrepreneur or financial professional. No one wants to hear the government’s most powerful collections agency is reaching out to them. At those times, you should find a lawyer knowledgeable in tax law. They’re ready to investigate and resolve your tax problems.
Tax crimes
Tax crimes entail avoidance of paying taxes on income, i.e., tax evasion. If you obtained that income illegally, say through embezzlement, you complicate the matter. Evasion can also include fraud as these monies are typically not reported and hidden through falsified means. Tax evasion is punishable by imprisonment, fine, or, usually, both.
Tax controversies
Tax controversies are any and all matters involving tax disputes. Sometimes the conflict is the result of a discrepancy in an audit. These are often big-ticket issues involving national or multinational corporations. When facing these situations, you want a legal attorney that understands the goals of the IRS. One with the history and skills to mount effective defenses.
Tax liens
If unsatisfied with your management of tax debt, the government may put a lien on any property, real estate, or financial asset you possess. This is not unusual as all creditors use liens. A lawyer can address these matters though, helping with installment agreements, settlements, penalty abatements and eliminations, settlements through tax bankruptcy, and filing delinquent tax returns.
Tax evasion
Willfully hiding income to avoid paying taxes falls under the tax code. Tax evasion includes using legal means to avoid paying taxes, such as opening untraceable accounts in foreign regions. Caught doing so gets you charged with a federal crime. You’ll face substantial penalties, including prison time. One caveat is a person is not guilty of tax evasion if they can prove the failure to report income was not intentional. But that’s going to require a strong legal voice arguing on your behalf.
Internal Revenue Service
The IRS is a bureau of the Department of the Treasury. Other governing tax bodies include state tax agencies. Tax agencies have incredible liberty in the enforcement of tax collection. And these guidelines are constantly changing and evolving.
Many tax crimes are spotted during an audit. When this happens, the auditor can hit you with a penalty or refer the matter to the IRS’s Criminal Investigation Division (CID). Not following tax code laws can land you in front of a Framingham judge, especially if you ignore official warnings from the IRS.