The potential for criminal prosecution for failure to file Tax Returns is very small; however, the economic consequences for Unfiled Returns are severe – there is a maximum 25% late filing penalty that can be applied to the tax. The late filing penalty combined with a late paying penalty of up to 22.5% and accruing interest can easily exceed more than 50% of the original tax liability in many cases. It is almost always in the best interest of the taxpayer to file, regardless of ability to pay. Richard Cotton will work with you to prepare and file current and prior period Tax Returns.
A tax audit may be an intimidating experience as you must be prepared to explain the nature of your income and substantiate the expenses and deductions claimed on your tax returns. It is likely that the examination of one tax return may lead to other tax years being opened for audit. In order to properly defend yourself, you may be required to have an extensive knowledge of the tax codes and regulations. Under the Taxpayer Bill of Rights, a taxpayer has the right to be represented by a tax attorney, enrolled agent, or CPA during the audit. The taxpayer does not have to be present at the audit interview unless an administrative summons has been issued. A taxpayer may request that the audit interview be suspended in order to consult with a representative.
A wage levy or garnishment is a method by which the Internal Revenue Service or the State has the means to collect outstanding taxes that the taxpayer has failed to voluntarily pay. It gives the Internal Revenue Service and the State the power to levy or garnish (take) your wages to satisfy your tax liability. The Internal Revenue Service is obligated by law to exempt an extremely small portion of your available income from the wage levy. The amount the Internal Revenue Service exempts, however, usually preventss the average taxpayer from continuing to meet even basic living expenses. Mr. Cotton will negotiate with the Internal Revenue Service and the State in order to secure a Release of Levy or Garnishment on Wages for you. For more information regarding the Release of a Garnishment or Tax Levy then you are on right place.
The Internal Revenue Service has an appeals system for taxpayers who do not agree with the results of an examination of their tax returns or with other adjustments to their tax liability. In addition to examinations, many other things can be appealed, among them are: - Collection actions such as liens, levies, seizures, installment agreement terminations, and rejected offers in compromise – Penalties and interest – Employment tax adjustments and the trust fund recovery penalty The Appeals Office is separate from the IRS Office taking the action you disagree with. The Appeals Office is the only level of administrative appeal within the IRS. Conferences with Appeals Office personnel are held by correspondence, by telephone or at a personal conference.
Many taxpayers cannot qualify for an Offer in Compromise, Statute of Limitations expiration, or bankruptcy relief, but still seek resolution for their IRS liability. Mr. Cotton will work with his client’s budget and financial profile to negotiate long term IRS payment arrangements. The IRS allows “structuring” five primary types of payment plans, or Installment Agreements: Guaranteed Installment Agreements, Streamlined Installment Agreements, In-Business Trust Fund Agreements, Long-Term Installment Agreements, and Installment Agreements on Specified Balance Due Accounts. If you would like to discuss any of your Installment Agreementsthen you are on right place.
For over 25 years at The Law Office of Richard B. Cotton has successfully brought more than a thousand individuals and businesses a permanent solution to their tax burden, achieving the best possible results for clients across a wide range of tax relief issues.
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