Everyone wants to be able to make their tax payments on time, but sometimes financial hardships and other life factors can make this difficult to do. For some, it has become impossible to deal with their mounting tax debts. Our experienced Danbury, CT tax lawyer can help you achieve the tax relief you are looking for, so that you no longer carry the burden of these debts on a daily basis. It can be immensely freeing to find solutions that bring ease. Please don’t hesitate to speak with our team at The Law Offices of Neil Crane for individualized support. There may be solutions that you didn’t realize are available to do. To learn more, contact us as soon as you can.
Tax Debt Bankruptcy
There are several possible solutions to your tax debt. After consulting with you further, we may suggest filing for bankruptcy. Through Chapter 7 and Chapter 13, you can halt tax penalties and interest right away. If you file for Chapter 7 bankruptcy, you will receive an immediate stay and have qualifying tax debts discharged. Through Chapter 13 bankruptcy, you can establish a reorganization of your debts through committing to a 3-5 year payment plan. The IRS offers a 6-month plan, but having a longer span of time can offer you more ease and less pressure.
Discharging Unpaid Taxes
The U.S. Bankruptcy Code allows a discharge of certain back taxes, but there are conditions that apply. Firstly, the taxes must be categorized as personal income tax. In general, most business taxes are not eligible for discharge. Whether a business can have their back taxes eradicated depends on the classification they fall under, such as payroll or sales taxes. Secondly, the taxes have to be at least 3 years old. Taxes that have accumulated sooner than that may not be dischargeable. Furthermore, there must be no evidence of taxpayer misconduct. Someone’s individual taxes may not get discharged through bankruptcy if the back taxes were from misconduct, like filing a tax return that was fraudulent or failing to file altogether. If the IRS has sent you a certified letter saying that you owe taxes, you must respond within 30 days.
Do not ignore any letters from the IRS regarding back tax debt. Reach out to our knowledgeable tax attorney about what to do next.
Your Tax Debt Solutions
Knowing that you have tax debts can be stressful, as no one wants to be in debt to the government. The IRS tends to be viewed as an intimidating presence that won’t relent in seeking unpaid tax debt from individuals and businesses. If you are facing an issue regarding past debts or want to learn more about possible solutions, then speak with our Danbury tax attorney at your earliest convenience. The team at The Law Offices of Neil Crane have helped so many people in a similar predicament as you, who just want to get rid of debts so they can have more peace of mind. Do not hesitate to contact us today for assistance.
Managing A Tax Audit With Help From A Tax Lawyer
Dealing with tax audits can be daunting for individuals and businesses alike, and professionals from The Law Offices of Neil Crane are here to help. Facing a tax audit requires a clear understanding of the legal implications and the proper steps to protect your rights and interests. In this article, we’ll explore key legal topics surrounding tax audits, providing essential information for anyone facing this challenging situation. Our aim is to make the complexities of tax law more approachable, especially for those seeking experience from a Danbury, CT tax lawyer. We are passionate about helping our clients and have been effectively and actively lobbying for borrowers’ rights before Congress since 1983.
Understanding Tax Audits
Tax audits are reviews conducted by tax authorities, such as the Internal Revenue Service (IRS), to verify the accuracy of a taxpayer’s returns and payments. The audit process can be triggered by various factors, including random selection, discrepancies in tax returns, or suspicious activities. It’s crucial to comprehend the legal grounds and procedures involved in tax audits to better prepare and respond effectively.
Types Of Tax Audits
There are several types of tax audits, each with different procedures and implications.
- Correspondence Audit: This is the most common type, conducted via mail. The IRS requests additional documentation or clarification regarding specific items on a tax return.
- Office Audit: This type requires the taxpayer to visit an IRS office to provide records and answer questions. It usually focuses on specific issues.
- Field Audit: Here, an IRS agent visits the taxpayer’s home or business to review records. This is the most comprehensive and intrusive type of audit.
When preparing the appropriate documentation and responses is incredibly helpful for understanding the type of audit you are facing.
Legal Rights During A Tax Audit
Taxpayers have specific rights during an audit to protect them from unfair treatment and ensure due process. These rights include:
- Right to Representation: Taxpayers can be represented by a qualified individual, such as a Danbury tax lawyer during an audit. This representation ensures that your interests are properly defended.
- Right to Privacy and Confidentiality: The IRS must respect your privacy and keep your information confidential throughout the audit process.
- Right to Appeal: If you disagree with the audit findings, you have the right to appeal the decision within the IRS or in court.
Being aware of these rights is essential for navigating an audit successfully.
Responding To A Tax Audit
Timely and accurate responses are crucial when dealing with a tax audit. It’s important to:
- Provide Complete Information: Ensure all requested documents and information are accurate and comprehensive.
- Communicate Effectively: Maintain clear and open communication with the IRS to avoid misunderstandings.
- Seek Professional Help: Engaging a lawyer can provide invaluable assistance in managing the audit process and defending your rights.
Consequences Of Tax Audits
The outcome of a tax audit can lead to various consequences, including:
- No Change: The IRS accepts the return as filed.
- Agreed: The taxpayer agrees with the proposed changes, which may result in additional taxes owed.
- Disagreed: The taxpayer disagrees with the findings, leading to potential appeals or litigation.
Understanding these potential outcomes helps in preparing for and responding to audit results effectively.
Effective Strategies For Facing Tax Audits
A clear understanding of your legal rights and obligations is crucial, and involves careful preparation when facing tax audits. At The Law Offices of Neil Crane, we are dedicated to helping you manage this complex process. We have had over 15,000 successful cases and our experience as a Danbury tax lawyer ensures that your interests are protected and that you are fully supported throughout the audit process. If you are facing a tax audit or need legal assistance, contact us today to schedule a consultation and safeguard your financial future.
How To Reduce Your Tax Burden
When facing tax obligations, enlisting the assistance of our Danbury, CT tax lawyer can be instrumental in reducing your tax burden. At The Law Offices of Neil Crane, we’ve been providing solutions and guidance regarding debt since 1983 and have successfully handled over 15,000 cases. Whether you’re dealing with IRS issues, tax debt, or general tax planning, professional legal support can make all the difference. Here are five ways our tax law professionals can help you achieve financial relief.
Strategic Tax Planning
Proactive tax planning is key to minimizing liabilities and maximizing savings. Many individuals and businesses end up paying more than necessary simply because they don’t have a solid tax strategy in place. Our tax resolution lawyers analyze your financial situation to identify opportunities for deductions, credits, and tax-saving strategies. By developing a customized plan, we help you retain more of your hard-earned income while ensuring compliance with federal and state tax laws.
Proper tax planning isn’t just about reducing your tax bill for the current year—it also sets you up for long-term financial stability. Whether you’re a small business owner, an independent contractor, or an employee, having our tax lawyers review your financials can lead to significant savings over time.
Representation During IRS Audits
Few things are more stressful than receiving a letter from the IRS about an audit. Audits can happen for various reasons, including discrepancies in reported income, excessive deductions, or random selection. Our IRS lawyers provide professional representation to make sure that the audit process is handled as smoothly as possible.
We work closely with you to gather necessary documentation, respond to IRS inquiries, and resolve any discrepancies. If necessary, we can also negotiate settlements or payment arrangements on your behalf.
Negotiating Tax Debt Settlements
If you’re burdened with significant tax debt, know that there are options available to help you regain financial control. Our Danbury tax lawyers negotiate with the IRS to explore solutions such as Offers in Compromise, installment agreements, or penalty abatements.
An Offer in Compromise allows you to settle your tax debt for less than the total amount owed, provided you meet the IRS’s strict eligibility requirements. Installment agreements, on the other hand, allow you to pay off your debt in manageable monthly payments. Our goal is to find the best possible solution based on your financial situation, helping you avoid unnecessary financial strain.
Addressing Unfiled Tax Returns
Unfiled tax returns can lead to substantial penalties, loss of refunds, and even legal action. The longer tax returns go unfiled, the more complicated the situation becomes. We assist in preparing and filing delinquent returns, working to minimize penalties and bring you back into compliance with tax authorities.
In many cases, filing late tax returns can help you avoid further penalties and may even qualify you for certain relief programs. If you’ve avoided filing due to financial hardship, we can help you explore options that prevent excessive penalties and interest from accumulating.
Legal Defense Against Tax Litigation
In some cases, tax disputes escalate to legal action, requiring strong defense strategies. We are prepared to represent you in tax litigation cases involving the IRS or state tax authorities. Whether it’s a contested audit result, disputes over tax liabilities, or allegations of tax fraud, we develop legal strategies aimed at achieving the best possible outcomes for our clients. We work diligently to present a strong case, negotiate settlements where applicable, and fight for favorable resolutions in court.
Take Control Of Your Tax Situation
At The Law Offices of Neil Crane, we’re committed to assisting individuals and businesses in Danbury and throughout Connecticut with effective tax solutions. Our team works tirelessly to help our clients reduce their tax burdens, resolve disputes, and avoid unnecessary financial strain. If you’re struggling with tax debt, facing an audit, or need guidance on tax planning, our Danbury tax lawyers are here to help. Contact us today to schedule a consultation and take the first step toward a more secure financial future.
