Tax Compliance Attorney in Pennsylvania
The best way to avoid tax problems is to stay compliant with your return filing obligations by filing timely, accurate tax returns and paying the amount of tax shown on the return. Since separate penalties are imposed for failure to file and failure to pay, it is always better to file the return by the deadline, even if you cannot pay the tax that is due by the deadline.
If you fail to file a return, the IRS has the authority to prepare a substitute return, but this is seldom to your advantage since the return will not include the deductions and credits to which you may be entitled. If you have unfiled tax returns from prior years, the Pennsylvania tax attorneys at Spencer Law Firm can help you become and stay compliant with your IRS tax filing obligations.
The IRS may select your return for examination even when you try to stay compliant with your tax return filing obligations. You will be expected to produce documents to substantiate the items shown on the tax return in an IRS examination. To the extent these documents are unavailable or insufficient, the IRS will make adjustments to the return. These adjustments generally have the effect of increasing the amount of income required to be shown on the return or decreasing the amount of deductions and credits that are allowed on the return. Either way, the end result is a tax increase.
The Pennsylvania tax lawyers at Spencer Law Firm can help you compile the documentation you will need to support the positions you took on your tax return. We can also represent you during an IRS audit to help reduce the possibility of incorrect adjustments.
Contesting Tax Liabilities
An initial IRS determination that you owe additional tax does not signify the end of your legal rights to contest the liability. When you appeal the results of an IRS audit, the case is assigned to an IRS Appeals officer. They work independently from the IRS Examination Division, and focus on settling your case.
Additionally, depending on the procedural posture of the case, other avenues for contesting a proposed IRS action may be available, including audit reconsideration, the Collection Appeals Program, requesting innocent spouse relief, filing an injured spouse claim, requesting an abatement of penalties or interest, filing a claim for refund, or requesting a Collection Due Process hearing.
A proposed tax liability may also be contested in the U.S. Tax Court, while refund claims to recover overpayments of taxes can be made in Federal District Court or the Court of Federal Claims. Whatever the status of your case, the tax attorneys at Spencer Law Firm can assist you in exercising your appeal rights.
Tax Collection Alternatives
Once your appeal rights have been exhausted, or if the proposed increase in tax was uncontested, you still need to pay the tax. Many taxpayers find that immediate full payment is simply not possible, due to cash flow considerations. In such cases, the taxpayer may be able to enter into an installment agreement to spread payments out over a period of several years.
Alternatively, depending on the circumstances, it may be possible to request an offer in compromise to settle the liability for less than the amount that is actually owed. Offers in compromise are generally accepted only when there is a doubt as to the collectibility of the tax debt or a doubt as to the taxpayer's liability for the tax debt.
The tax lawyers at Spencer Law Firm can help you to negotiate a payment alternative that reflects your ability to pay. We can also advise you on how to stay compliant while the tax payment plan is in effect.
Contact a Pennsylvania Tax Attorney
Our clients include accountants, individuals, corporations, partnerships, trusts and estates, governmental agencies and tax-exempt organizations. We continuously monitor proposed changes in state and federal tax laws for purposes of both compliance and tax planning, and can assist you with the following tax matters:
• Administrative appeals
• Collection due process hearings
• Contesting IRS levies
• Employment tax issues
• Federal tax liens
• Injured spouse claims
• Innocent spouse relief
• Installment agreements
• IRS audit representation
• Offers in compromise
• Penalty and interest abatement
• Pennsylvania tax matters
• Representation in federal court
• Representation in tax court
• Trust fund recovery penalty
• Unfiled returns
• Voluntary disclosure
Please contact Spencer Law Firm today online or call us at 866.639.5451.