Why do you need an experienced tax attorney when tax issues strike? What do you need to know about communications with the IRS and California’s tax agencies?
The idea that every person in the United States will accurately file their taxes by the April 15 due date is a myth. No one is perfect, and despite the implementation of laws, rules, and other provisions designed to help people file their taxes accurately and on time, extraordinary circumstances will still arise, causing individuals to miss deadlines or make mistakes.
Taxes are complicated, and life is even more complex. This is especially true for U.S. expatriates and U.S. taxpayers with real estate interests outside of the United States, offshore investments, foreign trusts, passive foreign income, or ownership in a business interest outside of the United States. It is the responsibility of all U.S. taxpayers to report and pay taxes on all income worldwide fully. Many states, such as New York, Hawaii, and California, carry the same requirement.
U.S. taxpayers should also understand that the IRS receives electronic data from foreign financial institutions, tax agencies, banks, and even cryptocurrency exchanges and wallets, detailing the accounts, balances, and transactions of U.S. taxpayers. This data is tied directly to a Taxpayer Identification Number (TIN) or Social Security Number (SSN). Artificial intelligence applications allow the agency to tie this information directly to the return(s) of any U.S. taxpayer.
This is why full, complete, and accurate disclosure of all income, foreign and domestic, is in your best interests as a taxpayer. This is also why you need an experienced tax attorney.
There will inevitably be situations where you aren’t quite up to the task. You may not even know that you made a mistake on your tax return at the moment it was filed. When these mistakes are made, it can be especially heartbreaking. The taxpayer is most often a hardworking and honest person who had no idea that they violated a small rule or the confusing provisions set forth by the Internal Revenue Service. Now, the taxpayer must dedicate additional time and resources to this tax situation when their lives are already complex and busy enough as is.
Tax agencies can be aggressive and unforgiving as well. You need to know that an IRS audit or California tax audit has one purpose: to separate you from your money.
For those who are experiencing tax challenges with the IRS and/or a state tax agency, don’t bury your head in the sand. Don’t let the issue linger on. Don’t procrastinate. You need a proactive and experienced tax attorney when tax issues strike to prevent the consequences and penalties related to your tax issue from getting worse.
We invite you reach out to our CPA and tax attorney Janathan L. Allen, to learn more about the integrated tax, legal, accounting and business consulting services of Allen Barron and contact us or call today to schedule a free consultation at 866-631-3470.
