Why Am I Being Audited?
If you recently filed a tax return in Maryland, and then received an IRS Notice of Examination, then you are about to be audited. There are several reasons why the IRS may have decided to respond with an audit. Some of the most common reasons for IRS audits include:
- If there appears to be excessive tax deductions on your return;
- If it seems that you have understated income, and/or failure to report 1099 income;
- If an IRS computer program detected discrepancies on your return, based on past similar returns;
- If certain information does not match, for example, if your W-2 from an employer, or your 1099 form from a bank, does not match the income reported on your tax return; or
- If your tax return is related to another tax return which was selected for examination, such as that of a business partner or investor
If you are going to be audited, then you may want to get the professional help of a Maryland tax attorney. An attorney can help defend you during tax disputes with the IRS.
If you are having trouble with the IRS due to a controversy over your taxes, then you may want to what you can do to resolve the situation. To learn more, read our article Overview of Tax Controversies
Hiring a Maryland Tax Lawyer
The consequences of a tax dispute can be personally and financially devastating, whether your conflict arises from a problem with state taxes or a federal income tax discrepancy. A Maryland tax attorney from the Vijayan Law Group can provide you with personalized tax assistance and fight for a fair IRS tax settlement that will help you to move forward with your life. Contact us today – 410-449-0893.
Can I Appeal a Tax Audit By the IRS?
If you receive an audit notification letter from the IRS, this means that an IRS examiner will conduct an assessment of your tax return. If the examiner is not satisfied with your return, then adjustments will be made, and you will be required to satisfy those adjustments. However, if you do not agree with the adjustments that are suggested by the examiner, then you may appeal the changes. To do so, you may want to get the professional help of a Maryland tax lawyer.
At the beginning of an IRS audit, your rights to appeal will be explained by the examiner. To appeal any proposed changes, you can request a supervisory conference with the examiner’s manager. You can also appeal your case:
- To the IRS
- To the US Tax Court
- To a US Claims Court
- To a local US District Court
To have your IRS audit appeal heard by a Claims or District Court, you will have to satisfy the new adjustments (pay the tax). However, you do not have to pay the tax to appeal with the IRS or the Tax Court. Beyond these appeals, a case may be further appealed to the US Court of Appeals or the US Supreme Court, if those courts will accept your case.
If you are having trouble with the IRS due to a controversy over your taxes, then you may want to talk to an experienced Maryland tax attorney about your options. To learn more, read our article Overview of Tax Controversies
Hiring a Maryland Tax Lawyer
The consequences of a tax dispute can be personally and financially devastating, whether your conflict arises from a problem with state taxes or a federal income tax discrepancy. A Maryland tax attorney from the Vijayan Law Group can provide you with personalized tax assistance and fight for a fair IRS tax settlement that will help you to move forward with your life. Contact us today – 410-449-0893.
Overview of Tax Controversies (Part A)
Whether filing your annual income taxes, or your quarterly corporate taxes, the slightest mistake can lead to an intrusive audit by the IRS. If there is a significant error with your tax filing, or if you failed to file altogether, then you may face an investigation, collections, liens against your property, or in the worst case, time in jail. For tax dispute help in Maryland, and to resolve any issues that you may have with the IRS, you can get the professional help of a Maryland tax lawyer.
Handling a Civil Tax Controversy
It is needless to say that taxes can be complicated. This is why we pay accountants and firms to manage our taxes for us. However, accidents happen, mistakes may occur, and we can find ourselves on the wrong end of an audit.
This can begin with a simple “red flag” that is raised by the IRS. If the Examination Division of the IRS finds a discrepancy in your tax return, you may find yourself in sudden need of tax dispute help in Maryland. There are several factors that may raise the suspicion of the IRS including:
- The appearance of excessive tax deduction;
- The appearance of understated income, and any failure to report 1099 income; and
- Computer scoring – computer programs that evaluate returns may detect discrepancies in your return
If any of these factors on your tax return raise the suspicion of the IRS, then you may receive an audit notification letter. When you receive this letter, you may seek the help of a Maryland tax lawyer, or you may act on your own behalf. However, it may be in your best interest to at least consult with an attorney about your case.
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Overview of Tax Controversies (Part B)
How will I be examined?
When you are audited by the IRS, an examination may be conducted by mail, or by an interview and review of your tax records. The interview may be conducted at an IRS office, at your home, your place of business, or your accountant’s office. A Maryland tax lawyer may be present when you attend the examination.
Do I have the right to an appeal?
At the beginning of an audit, the examiner will explain your right to appeal. If you do not agree with the changes that are proposed by the examiner, then you may appeal by having a “supervisory conference” with the examiner’s manager. You can also appeal administratively by contacting the IRS.
What if I’m still not satisfied with the IRS’s decision?
If the IRS has come to a decision, and yet you feel that:
- Procedures were not followed properly;
- You were sick or indisposed, and unable to properly present your situation;
- You are unsatisfied with the representation of your accountant or attorney; or
- You are an innocent victim of some one else’s financial burden (i.e. a spouse or business partner).
Then you may want to get the professional help of a Maryland tax lawyer. A Maryland tax lawyer can help you defend yourself against the IRS. A lawyer may be able to prevent penalties such as:
- Tax liens against your property;
- An IRS levy on your assets or bank accounts;
- Property seizures; and
- Wage garnishments.
To find out how you may prevent the IRS from penalizing you in a tax dispute, you can consult an experienced Maryland tax lawyer. An expert lawyer can defend you against an audit by the IRS.
Hiring a Maryland tax lawyer
The consequences of a tax dispute can be personally and financially devastating, whether your conflict arises from a problem with state taxes or a federal income tax discrepancy. A Maryland tax attorney from the Vijayan Law Group can provide you with personalized tax assistance and fight for a fair IRS tax settlement that will help you to move forward with your life. Contact us today – 410-449-0893.
Appealing a Federal Tax Lien in Maryland
If you have received a Notice of Federal Tax Lien from the IRS, the U.S. government has just placed a lien against your personal property. The reason they did so is because you failed to pay the taxes that you owe.
To appeal this decision, you may ask an IRS manager to review your case. You can also request a Collection Due Process hearing with the IRS Office of Appeals, by filing a request for hearing with the office that is listed on your notice. You must file this request by the date shown on your notice. According to the IRS, at the Collection Due Process hearing, some of the issues that you may raise include:
- That you paid the taxes you owed before the federal tax lien was filed;
- That you were in bankruptcy when the IRS filed the lien;
- That the IRS made an error in their assessment;
- That you did not have an opportunity to dispute the assessment; or
- That the statute of limitations expired before the IRS filed the lien.
When your Collection Due Process hearing is concluded, the IRS Office of Appeals will issue their determination. This may be either to support the federal tax lien on your property, or that the lien should be withdrawn. Before asking for a hearing you should consult with a Maryland tax dispute attorney.
To learn more about federal tax liens, visit our article library.
Contacting a Maryland Tax Dispute Attorney
If you are facing a personal financial crisis such as back taxes in Maryland, you can get the professional help of a Maryland tax dispute attorney. The Maryland tax dispute attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized tax help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.
I Have Received a Notice of Federal Tax Lien. What Does This Mean?
If you have received something called a Notice of Federal Tax Lien, this means that the U.S. government has placed a lien on your personal property. This is because you have failed to pay the IRS the taxes that you owe.
Once this lien has been placed, the IRS will send you a tax bill which must be paid within 30 days of receipt. If you do not pay this bill within 30 days of receipt, the tax lien will be published in public records.
The lien will be attached to all of your personal property, including your house, your car, and any other assets that you have. Once a tax lien is filed, it can damage your credit, which may prevent you from receiving a loan, getting a new credit card, leasing an apartment or even getting a new job.
To minimize the negative effects a tax lien will have on your personal and professional life, it’s wise to seek the professional help of a Maryland tax dispute attorney as soon as you find yourself in this unfortunate situation.
How can I have a tax lien removed?
According to the IRS website, you may be able to release your tax lien:
- Within 30 days after you satisfy the taxes that are due (including interest and other additions), either by paying the debt or by having it adjusted; or
- Within 30 days after they accept a bond that you submit, guaranteeing the payment of the debt.
To learn more about federal tax liens, visit our article library.
Contacting a Maryland Tax Dispute Attorney
If you are facing a personal financial crisis such as back taxes in Maryland, you can get the professional help of a Maryland tax dispute attorney. The Maryland tax dispute attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized tax help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.
An Overview of Tax Liens (Part A)
A lien is a legal claim to your property as security or payment for a debt. If you fail to pay your taxes to the IRS, the government can attach a federal tax lien to your personal property.
This is one of the strongest collection methods that the U.S. government has at its disposal. While this is generally known as a statutory tax lien, it may also be called a “secret lien”, because no one will know of it except you and the IRS.
Once this lien is in place, the IRS will send you a tax bill, which must be paid within 30 days. If you fail to pay within 30 days, the IRS will make the lien known by filing a notice in the public records. This filing will damage your credit and lead to further financial troubles. If you have received a tax lien in Maryland, you may want to get the professional help of a Maryland tax dispute attorney as quickly as possible.
Understanding a Notice of Federal Tax Lien
According to the IRS, a notice of federal tax lien in Maryland may be sent only when:
- The IRS has “assessed the liability;”
- The IRS has sent you “a Notice and Demand For Payment,” which is a bill stating how much you owe in taxes; AND
- You fail to pay the debt within 10 days of notification.
When a tax lien in Maryland is filed, it attaches to all of your property. This includes your personal property, such as a house, car and other assets. The same applies to businesses who are the subject of tax liens which apply to business holdings and even your accounts receivable.
Time is of the essence when it comes to tax liens, because as soon as the lien is filed, your credit rating can suffer a major hit. You may be unable to secure a loan to buy a house or car, or even to open a new credit card account. A poor credit rating can affect your ability to land a new job or sign a lease on a rental property. To minimize the negative effects of a tax lien, it is crucial that you settle your tax lien in Maryland as soon as you are able.
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An Overview of Tax Liens (Part B)
Getting a Tax Lien Removed
According to the IRS website, the government agency will issue a Release of the Notice of Federal Tax Lien:
- “Within 30 days after you satisfy the tax due (including interest and other additions), either by paying the debt or by having it adjusted”; or
- “Within 30 days after (they) accept a bond that you submit, guaranteeing the payment of the debt.”
Not only must you satisfy the tax lien, you will have to pay all fees that the state of Maryland charges to file and release the lien. These fees are added to the total amount that you owe. If you have questions about satisfying your tax lien, or about additional payments in the state of Maryland, you can get the expert advice of a Maryland tax dispute attorney.
Appealing the Filing of a Tax Lien
You have the right to appeal the filing of a tax lien. To do so, you should promptly secure the services of a Maryland tax dispute attorney who can guide you through this process.
You will start by asking an IRS manager to review your tax lien case. You also have the option of requesting a Collection Due Process hearing with the Office of Appeals.
Listed below are some of the types of issues that the IRS has identified as common and potentially valid talking points to go over with an IRS representative:
- That you paid everything you owed before the lien was filed;
- That the IRS assessed your tax and filed the lien while you were in bankruptcy;
- That the IRS made an error in their assessment;
- That the IRS filed the lien beyond the expiration of the statute of limitations; or
- That you would like to talk about the collection options available to you.
Before you make any complaints, you should discuss your options with a Maryland tax dispute attorney. An attorney can investigate your case, and suggest the best course of action for you to take.
Contacting a Maryland Tax Dispute Attorney
If you are facing a personal financial crisis such as back taxes in Maryland, you can get the professional help of a Maryland tax dispute attorney. The Maryland tax dispute attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized tax help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.
I don’t have enough money to pay off all of my back taxes, so I am considering not filing at all; will the IRS charge me with tax evasion?
If you do not have enough assets to pay your back takes, it is a mistake to think that you can escape the IRS and avoid charges of tax evasion. If you owe back taxes, it may take some time for the IRS to find you, but rest assured that they will find you eventually.
This is especially true if you have received a letter mentioning a Notice of Federal Lien. If you have received this notice, then you need to settle your back taxes right away. If you are contacted by an IRS agent from the Criminal Investigation Division, then you may be in serious trouble, and you will need the help of a Maryland tax attorney to avoid doing time in jail.
In fact there are various ways an attorney can help you resolve the issue of back taxes. A Maryland tax attorney can negotiate with the IRS to make an Offer-in-Compromise, as well as come up with deductions that you haven’t discovered, or find discrepancies with the IRS calculations. A Maryland tax attorney may be able to extend the payment process and come up with a viable resolution. By coming up with a payment plan, you may be able to make monthly installments that will satisfy the demands of the IRS.
If you are facing a personal financial crisis such as back taxes in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland tax attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized tax help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.
What are the different types of audits?
If the IRS has sent you notice of an audit, you want to be prepared for what is to follow. There are several different types of audits that business owners face. For assistance with an audit, you can get the professional help of a Maryland tax attorney.
Correspondence Audit
In this type of audit, the IRS will ask you to document an item on your return. This is fairly simple, but you will have to photocopy documents such as receipts or credit card statements, and mail them to the IRS.
Office Audit
In this type of audit, the IRS will ask you to report to one of their offices. During your visit, you will be asked to document one or more items on your return. You may be permitted to send copies of documents in advance of the meeting, and clear up the issue beforehand.
Field Audit
In a field audit, you will be asked to provide documentation of certain items on your return, and meet with an IRS agent. The agent will thoroughly review your records for falsifications and discrepancies. For this, you may choose a location to meet, which should be your accountant or attorney’s office. A Maryland tax attorney will be experienced with federal tax laws.
Criminal Investigation Audit
If the IRS suspects you of tax evasion, you will face a criminal investigation audit. If they find that you have evaded taxes, you will be faced with fines and the possibility of time in jail. For this type of audit, you will definitely want to hire a Maryland tax attorney.
The consequences of a tax dispute can be personally and financially devastating, whether your conflict arises from a problem with state taxes or a federal income tax discrepancy. A Maryland tax attorney from the Vijayan Law Group can provide you with personalized tax assistance and fight for a fair IRS tax settlement that will help you to move forward with your life. Contact us today – 410-449-0893.