A tax attorney typically has an in-depth understanding of tax law and helps people arrange their finances specifically to optimize tax situations and comply with tax laws. They can also handle disputes with the Internal Revenue Service (IRS) or other tax authorities, which is why you will want to hire an Illinois or Indiana tax lawyer if you are dealing with any kind of tax issue.
Many revenue agents try to collect additional information that may not actually be necessary, and most people will give in to these requests, but providing more information may lead to you facing additional penalties or prosecution. An experienced attorney will know how to use the law and procedural protections of the IRS, Illinois Department of Revenue, or Indiana Department of Revenue to your advantage.
When you do not file tax returns, the IRS can estimate what you owe and pursue aggressive collection efforts. The IRS will begin by demanding payment through relentless phone calls, field visits, and letters, but ignoring these demands for payment can lead to collection measures that are even more extreme.Â
The IRS may file liens against your property, levy funds from your bank accounts, or garnish your wages directly from paychecks. It is also possible that the IRS suspends your passport because of unpaid taxes.
A bank account levy happens when a creditor such as the IRS instructs a bank to withdraw money from an account, and this can be done without the account holder’s permission. The creditor applies the funds toward outstanding debt.
A creditor has to sue the debtor in court to win a money judgment, and the creditor will then become a judgment creditor. This will mean that the creditor can use collection techniques to take funds when the debtor refuses to pay voluntarily, including taking funds out of a paycheck (also known as wage garnishment), forcing the sale of property such as a car or home, or even instructing a sheriff to take money from a cash register.
When you end up receiving a Notice of Federal Tax Lien, you will be unable to borrow any money. A lien from the IRS will make it more difficult to rent an apartment, obtain a motor vehicle, or get any kind of credit and may even jeopardize your job status in some cases.
Federal tax liens survive foreclosure, become matters of public record, and also attach to your credit reports. A federal tax lien release may allow you to discharge a lien, subordinate the lien, or withdraw the lien.
Common payroll tax violations the IRS discovers during audits include misclassification of employees as independent contractors, failure to file payroll tax returns, or pyramiding, a process in which an employer withholds payroll taxes from employees but does not pay the IRS the taxes. Avoiding paying payroll taxes by paying employees in cash and failing to withhold and pay taxes or filing bogus payroll tax returns are also payroll tax violations.
A creditor such as the IRS may garnish your wages to pay a judgment against you by filing documents with the court, but it is also possible for a creditor to garnish your wages to pay back taxes without obtaining a judgment through a process known as administrative wage garnishment. The IRS can typically garnish far more than any private creditor.
The IRS has the ability to seize a taxpayer’s property, and this is one of the agency’s strongest weapons to encourage tax compliance. The IRS does not seize property overnight, as you will receive warnings and get the opportunity to appeal the decision.
If you are facing any kind of tax issue with the IRS or a state agency that is creating undue stress and discomfort, do not think that you have to continue living this way. Spagnolo & Hoeksema, LLC, knows how to handle complaints from the IRS and state agencies, so we can negotiate a far more favorable outcome than you are likely to achieve trying to negotiate on your own.
Our firm has significant experience handling many different types of tax issues, so you can be confident that we will have the answers to whatever tax problems you are currently facing. Call us or contact us online to arrange a free consultation that will allow us to take a much closer look at your case and provide sound legal advice.
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