Common Tax Controversy Issues

As a taxpayer and/or business owner, in Los Angeles, or any other city, you’ll know all too well that feeling of impending dread that you get each year when the time comes to file your tax return and take care of your books for another year.

There have been numerous instances of tax controversy over the years, and as many of you will know, staying on the good side of the IRS is certainly in your best interests if you wish to enjoy a quiet and stress-free life.

In terms of tax controversy issues plaguing many taxpayers in Los Angeles and nationwide, the prospect of being audited by an IRS agent is one that keeps many a business owner up at night and brings them out in a cold sweat at the prospect.

If you find yourself on the radar of the IRS, whether it is due to unpaid back taxes, tax discrepancies, late filing of your tax return, outstanding back taxes, or anything else, it is certainly in your best interest to hire a tax expert to handle the technical issues for you.

Though IRS audits can be random, there are certain things that can put you at a higher risk.

Get a free case evaluation by calling us at 1-877-788-2937.

Here’s a look at what an IRS tax audit is.

An IRS tax audit is an examination/review of an individual or an organization’s tax, financial information and accounts.

Basically, the idea behind an audit is to ensure that the info you provided on your tax return is accurate and honest.

When you are audited, in Los Angeles, or any other city, more often than not the IRS will contact you and request information relevant to your accounts and finances, such as receipts, bank statements, invoices, cancelled checks, loan agreements, logs, employment documents, and much more besides.

By law, you must keep all records that you used to complete your tax return, for at least three years from the date in which the tax return was filed.

Sometimes the IRS will conduct face to face audits in Los Angeles area and other nationwide offices, in which you will sit down with and IRS agent and provide the info requested in person for them to look through to ensure that the details you provided were indeed accurate and above board.

As well as being audited, you may find yourself facing other issues relating to the IRS.

Here are a few other issues you may face:

An IRS tax lien, also known as a federal tax lien, is basically the government’s way of claiming money from you, owed to them, that you have not yet paid.

Here, the IRS will file a Notice of Federal Tax Lien - NFTL, as a way of alerting creditors that the government legally has a right to your property.

If the IRS in Los Angeles, or any other city, informs you that they intend to file a Notice of Federal Tax Lien, you can legally appeal and should contact a tax professional as quickly as possible.

An IRS levy, not to be confused with a lien, is the legal seizure of a property in order to satisfy a tax debt.

Levies are different to liens, in that a lien is a legal claim against a property in order to satisfy a debt, whereby a levy is an act which actually seizes the property.

Basically, if your debt is large enough, you could potentially lose your home to the IRS, and nobody wants that, right?

An IRS bank levy takes place when the IRS essentially freezes your bank account, so that you can’t withdraw funds or transfer them.

The IRS does this as a way of getting back taxes and other payments owed to them by you.

Once the IRS places the levy on your bank account, you have 21 days to pay back what you owe, or come to an agreement with the IRS and set up a payment plan, otherwise they can legally take whatever they want from your bank account.

Furthermore, if you still owe money, the IRS can levy your bank account in the future until the back taxes and payments you owe have been paid off.

Another way in which the IRS can claim back money owed to them by you is to enforce a wage garnishment.

Basically, a wage garnishment is a procedure whereby a percentage of your employment wages each week/month, are paid to the IRS in order to satisfy your tax debt.

Once the IRS enforces a wage garnishment, your employer is legally required to comply and pay a percentage of your wages to the IRS until they are satisfied the debt has been paid off sufficiently.

By law, you can of course appeal, which is another reason to seek help regarding this tax controversy issue as tax professionals’ deal with issues like this every single day, and can often help prevent a wage garnishment before it is enforced in Los Angeles, or any other city.

Get a free case evaluation by calling us at 1-877-788-2937.

Now that we’ve looked at a few of the more prominent tax controversy issues you’re likely to face as a taxpayer in Los Angeles and nationwide, we’ll bring things to a close today by looking at the best ways to avoid these issues in the first place.

First and foremost, the IRS know every trick in the trade when it comes to tax fraud and evasion, and they can spot a liar a mile off.

When filing your tax return, never ever lie about how much you’ve made in a bid to avoid paying more tax because they will find out, and ultimately it will wind up costing you a great deal more.

In extreme cases, you could lose your home, your business, and even your freedom if you are incarcerated.

Mistakes happen, and everybody makes mistakes now and then, especially when it comes to filing a tax return.

If you incorrectly filed your tax return, filed it late, or are penalized by the IRS for any other reasons, always work with the IRS and do as requested.

The IRS agents and officers in Los Angeles, or any other city, are actually accommodating and are more than willing to work with you or your power of attorney to set up a payment plan that works for both you and them.

If you face IRS tax controversy issues, or if you just want help with your tax return, or more free time on your hands, it is always best to hire tax professionals to take care of your unfiled tax return, unpaid back taxes, audit representation, lien & levy releases, 941 payroll issues and other tax controversy matters for you.

Get a free case evaluation by calling us at 1-877-788-2937.