Tax Solutions That Stand The Test Of Time

Frequently Asked Questions About The Tax Code

Tax issues are understandably intimidating, and you may be afraid that any actions you take will lead to serious repercussions or expensive fines. As experienced tax law attorneys, our team at Bendure & Thomas has compiled a list of common questions that you may find helpful.

It is important to note that these answers are not tailored to your personal, financial and legal situation. For custom legal advice that ensures your actions fully account for your legal and financial obligations, please reach out to our firm and request your free initial appointment.

The IRS Is Auditing Me Or My Business. Do I Need To Get An Attorney?

While there is no legal requirement to hire a lawyer during a tax audit, working with an experienced tax law attorney is among the best steps you can take to protect yourself, minimize any additional tax burdens and fines, and limit the impact an audit has on you or your business. We highly suggest scheduling a free consultation with our firm.

What Is The Difference Between A Lien And Garnishment?

If you have unpaid taxes or the IRS imposes fines, they have the power to place a lien or order wage garnishment. A lien places a hold on your property until the fines or taxes are paid; a garnishment takes a portion of the unpaid balance directly from your paycheck until the fines or taxes are paid. If you are threatened with a lien or garnishment, contact our office immediately and ask about how to mitigate the issue.

Is It Possible To Reduce The Tax Burden On My Estate?

Yes. With intense review, our attorneys can help determine the full value and holdings of your estate, and think strategically about ways to minimize estate taxes and other tax burdens through estate planning, trusts and other methods.

Will Filing Bankruptcy Stop The IRS From Collecting Back Taxes?

As with many debts, bankruptcy prevents the IRS from continually contacting or harassing you. Our firm can help you explore whether bankruptcy truly is your best option to resolve your tax conflicts or if negotiations, restructuring or payment plans better suit your needs.

When Does A Tax Issue Become Criminal?

There are several criminal acts that commonly are associated with taxes and the IRS, most notably fraudulent filings. If you are accused of criminal tax fraud or another criminal act directly related to taxes, talk to our lawyer right away.

What Should I Do If I Receive A Notice Or Letter From The IRS?

There are two mistakes people tend to make when they get a notice or letter from the IRS. The first is to ignore it, hoping the problem will go away or resolve itself on its own. You should never do this. It’s very important to read the letter and consider how you need to respond.

The second mistake, though, is being overly concerned. For instance, people will sometimes get a letter saying that there are issues with their tax return, and they will automatically assume that it’s a criminal offense that could lead to significant fines or even jail time. But it may just be an honest mistake, which isn’t a criminal issue at all, or it could simply be that the IRS needs more information or clarification on certain points. It can be helpful to work with an experienced lawyer who can assist in providing guidance and helping you understand what next steps to take.

I Haven’t Filed Taxes In Several Years, What Are My Options And What Are The Risks?

If you haven’t filed your taxes, it is a fairly serious situation, especially if you are years behind. In some cases, though, you can make this right through voluntary disclosure programs or by using documents to modify tax returns. For instance, maybe you have paid some taxes, but you just realized you’ve been underpaying for three years. There are forms you can use to disclose this information, update the documentation and pay the additional taxes.

That said, getting compliant is important. If you’re unsure how to move forward, an attorney can help you look into the various options you have and the steps you’ll need to take. Do not just ignore the back taxes that are still owed, but try to get up-to-date on your back payments and file your taxes properly moving forward.

Can I Negotiate My Tax Debt With The IRS If I Can’t Pay The Full Amount?

Yes, there are often options to negotiate with the IRS. For instance, you may be able to use an installment agreement, which allows you to make smaller payments over time if that’s more affordable. In other cases, the IRS may extend an offer in compromise, which means they’re agreeing to take less than the amount that is owed and forgive the remaining balance.