The deadline of April 17, 2012 to file your tax return or request an extension has come and gone. Now What?

Interest and penalties add to the total amount you owe, so the sooner you file, even if you can’t pay all or some of the taxes due, the less you will owe. The IRS will deny a request for an extension that is filed after midnight on April 17. However, you should still file your tax return, even if it’s late.

Penalties and interest will usually be added to any tax you owe. The late filing penalty is normally 5 percent per month, or part of a month, based on the unpaid balance, up to a maximum of 25 percent. If the tax return is more than 60 days late, the minimum penalty is $135 or the balance due, whichever is less.

A late payment penalty, normally one-half of one percent per month, may also apply, along with interest, currently at the rate of 3 percent per year, compounded daily.

Tuesday, April 17, is the deadline for filing certain returns and taking certain tax-related actions. Here are the major deadlines.

• Filing 2011 income tax returns for individuals. If you cannot file your return by this deadline, be sure to file an extension request by April 17. The automatic extension (you don’t need to explain to the IRS why you need more time) gives you until October 15, 2012, to file your return. An extension does not, generally, give you more time to pay taxes you still owe. To avoid penalty and interest charges, taxes must be paid by April 17. (Watch out for our next blog post regarding penalty relief available to qualifying taxpayers.)
• Filing 2011 partnership returns for calendar-year partnerships.
• Filing 2011 income tax returns for calendar-year trusts and estates.
• Filing 2011 annual gift tax returns.
• Making 2011 IRA contributions.
• Paying the first quarterly estimate of 2012 individual estimated tax.
• Amending 2008 individual tax returns (unless the 2008 return had a filing extension).
• Original filing of 2008 individual income tax return to claim a refund of taxes. Some taxpayers have tax refunds due them for prior years, and unless a return is filed to claim the refund by the three-year statute of limitations, the refund is lost forever.

It is my responsibility as an Atlanta Tax Attorney and Certified Public Accountant to notify you that you could have tax refunds waiting if you have not filed a federal income tax return for 2008. In my commitment to educate my clients nationwide and in the greater Atlanta area, read more to find out what to do:

There are tax refunds totaling more than $1 billion waiting for one million people who did not file a federal income tax return for 2008, the Internal Revenue Service announced. However, to collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012.

The IRS estimates that half of these potential 2008 refunds are $637 or more.

There are numerous reasons why some people don’t file their tax return. Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury and it becomes almost impossible to obtain the refund.

For 2008 returns, the window to file your tax return and request your refund closes on April 17, 2012. The return must be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.

It is important to remember taxpayers seeking a 2008 refund checks may be held if they have not filed tax returns for 2009 and 2010. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than refunds of taxes withheld or paid during 2008. Some people, especially those who did not receive an economic stimulus payment in 2008, may qualify for the Recovery Rebate Credit. In addition, many low-and moderate-income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2008 were:

• $38,646 ($41,646 if married filing jointly) for those with two or more qualifying children,
• $33,995 ($36,995 if married filing jointly) for people with one qualifying child, and
• $12,880 ($15,880 if married filing jointly) for those with no qualifying children. ?For more information, visit the EITC Home Page on IRS.gov.

So remember, if you have not filed your 2008 tax return and would be receiving a refund the return must be filed on or before April 17, 2012 or you will lose the opportunity to receive it!

Do you need representation to file your 2008 tax return before April 17th, 2010? I am an experienced Atlanta tax attorney and Certified public accountant and I have been helping clients throughout Georgia and nationwide since 1982. When it comes to legal representation of your rights you want experience! The Gartzman Law Firm, P.C. is an Atlanta-based law firm qualified to help you resolve tax problems with practical solutions throughout Georgia and nationwide.

I recently answered another question about back taxes on Lawyers.com and I recommend you review it to learn what you need to do if you receive a letter from the IRS.

Question: “Would I owe taxes to the IRS if someone in Chamblee, GA prepared my 2008 taxes and now the IRS is stating that I owe them back taxes, interest & fees?”

Answer: 1. Unfortunately, even if a licensed tax preparer prepared your tax return, you may still be required to pay your tax liability if the IRS correctly determines you owe the liability. As the taxpayer, it is your responsibility to submit an accurate tax return, this means even if you didn’t prepare the return and know about the mistake, you are still on the hook for the tax liability. Before you pay the tax the IRS claims you owe, you may want to have a CPA or tax attorney review the returns to determine if the IRS is correct in their assessment.

2. As a general rule, tax preparers could be liable for incorrect returns if it was negligent or intentional. I would speak to a civil litigation attorney for more information.

Since October 15th falls on a Saturday in 2011, this year’s deadline is Monday, October 17th.

Atlanta tax attorneys and the best IRS tax relief firms in Georgia are reminding clients that if they filed an IRS Form 4868 for a tax extension last spring, the deadline to file a return is coming soon. The extension deadline is normally on October 15th, but because the 15th falls on a Saturday in 2011, this year’s deadline is Monday, October 17th.

Filing a tax extension Form 4868 by the April tax deadline (usually the 15th) allows a taxpayer or an Atlanta tax lawyer more time to gather together the necessary paperwork in order to file an accurate tax return. It does not give more time to pay the taxes that are due. Those must be paid in full by the April deadline, even if you have to make an educated guess as to the amount. The good news, as the best Atlanta tax attorneys will tell you, is if you paid at least 90% of what was due on time in April, the remaining money you owe will not be assessed a late penalty. If your newly completed return indicates that you overpaid, you will receive a refund. Interest accrues on any balance due as of April 15th. If you underpaid by more than 10%, you will be assessed penalties on the unpaid taxes.

If you have any questions about the approaching tax extension deadline and what it means for you, or need help with your unpaid taxes, please call your Atlanta tax lawyer or the staff at The Gartzman Law Firm at 770-939-7710.

If the IRS is tired of you not returning their calls and letters, or if they have not heard from an Atlanta tax attorney like The Gartzman Law Firm that represents you, they might try getting your attention with a tax lien. This financial headache is a claim on your property (house, car, business, etc.) that the IRS uses as security until your back tax debt is paid to their satisfaction. You cannot sell or transfer your property while a tax lien is in place.

In addition, the tax lien is filed with the county clerk and becomes a matter of public record, public knowledge and goes on your credit report. This black mark makes it very difficult if not impossible to qualify for a personal loan. You cannot borrow to pay off the debt, send your kid to college or make any large financial moves to help dig yourself out of your hole. You need help with your unpaid taxes. Without the help of Atlanta’s best tax lawyer, you’re dead in the water.

Or so the IRS would like you to think. They will most likely not tell you about your appeal process. After all, they know all the rules and hold all the cards. What do you have?

Atlanta’s best tax attorney! A run-of-the-mill tax lawyer may not have the experience to know that there are certain rules and stipulations associated with a Collection Appeal, but with the help of The Gartzman Law Firm, you can file one that might be the answer to your prayers. An IRS Appeals Officer will review your case, which your tax attorney has carefully crafted to defend your position, and rule on your case in five days. If you are successful, your tax lien may be released.

This is a slippery slope, and should not be navigated without the experienced guidance of an Atlanta tax attorney. We want you to be successful. It can mean the difference between financial life and death.

For my clients in Atlanta, tax relief from a tax attorney is the last hope for getting out of an unfortunate situation with IRS tax debt. You can avoid IRS trouble by learning from these common mistakes that lead to owing back taxes.

Think of the IRS as your prickly Aunt Mildred who is always correcting your grammar and criticizing your fashion choices. It may feel like they are just waiting for you to slip up, so they can swoop in and disrupt your life with an IRS tax audit. Atlanta tax attorneys agree that the best defense is not to give them any ammunition in the first place. There are some cut-and-dried tax help steps you can take to make sure you stay in the IRS’s good graces. (You’re on your own with Aunt Mildred.)

Meet the deadline. If you can’t get all your paperwork together by April 15th, don’t hide under a rock and assume the nice federal agents won’t be able to find you. Buy yourself some time by going online and submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return by the regular deadline. If you can’t do it, ask for tax help from an Atlanta tax attorney or CPA.

Pay on time, even if only in part. Even if you filed an extension, you still have to pay what you think you owe. If you can’t make the complete payment on April 15th, pay as much as you can. The IRS will still eventually dun you for fees and interest (an Atlanta tax lawyer can help you get IRS tax help), but they won’t take as dim a view as they would if you tried to get away payment-free.

File a return. If you don’t, Atlanta tax lawyers will tell you that the IRS will do it for you, and it will reflect the government’s best interests, not yours. You can always file an amended return down the line.

Keep copies of everything. The IRS manages the taxes of hundreds of millions of people and companies, the law of averages says that some things are going to slip between the cracks. Make sure it’s not you by keeping copies of all pertinent paperwork. If the IRS knocks on your door with a smile, you want your Atlanta tax attorney to be able to help on your behalf.

Double-check your math. According to the Treasury Department, self-filers have an error rate as high as 61 percent. Even tax preparation software is better than doing it on your own. There is less room to make mistakes and it will prompt you to ensure you have pursued every avenue to deductions. Better yet, have your Atlanta CPA or tax attorney help prepare income tax returns for you.

Don’t cheat. Did you know that the IRS is already in possession of your W-2 and other information? If they find discrepancies, you’ll have some explaining to do, and they’ll be less likely to give you IRS tax relief. Then you will really need an Atlanta tax lawyer.

For most people, the month of June is linked to happy things like wedding season and the beginning of summer. But for Atlanta tax attorneys and folks with one or more foreign bank accounts, June 30 marks the annual Foreign Bank Account Report filing deadline.

The FBAR can be misunderstood by many folks who file one or should be filing one – but aren’t. If you have any questions, you should call an Atlanta tax lawyer for tax help.

What you need to know about Foreign Bank Account Reports:

• The FBAR is not an IRS form, but a Treasury Department form. It cannot be filed electronically and it is due on June 30. Postmarks of that date are not acceptable, it must be in their hands.
• If you pay taxes in the US as a citizen, resident or entity, and at any point during the year (no matter how briefly) you have $10,000 or more in one or more foreign accounts, you must file a FBAR. The $10,000 threshold is determined by using the highest account balance during the year and converting it to US dollars with the exchange rate of December 31 of the year in question. If you have any questions, call an Atlanta tax attorney.
• Includable assets might be brokerage and bank accounts, pooled investments, offshore mutual funds, trusts, annuities, life insurance, pension plans.
• A foreign bank account is defined by location. A US financial institution’s branch overseas is fair game. An offshore bank’s branch is not in the US.

This is not something to mess with. Failure to conform to these rules bears a heavy penalty. Violators are fined $100,000 or half of the value of the account, for every year that was not filed. This is true, even when no tax was actually owed or in arrears. Save yourself a lot of worry and money and consult with an Atlanta tax lawyer for tax help today.

If you needed surgery, would you attempt to do it yourself? An IRS tax audit is just as critical for your tax, financial and business wellbeing, so don’t go it alone.

Ask anyone who has tried to “DIY” the audit process unsuccessfully: The IRS has been far more aggressive in tax audits and collection efforts in recent years. Taxpayers are not guaranteed flexibility from the IRS. Learn from my Atlanta tax relief clients who have found tax help with expert tax attorney representation, even at the eleventh hour with an IRS audit.

It’s never too late to hire an Atlanta tax attorney

If you receive notice from the IRS that you’re being audited, representing yourself can be dangerously inefficient and close doors on key opportunities that your tax attorney will understand from the start.

A textbook example is the taxpayer who either ignored the IRS audit notice or dealt with the IRS auditor alone. Take advice from my Atlanta tax relief clients who tried an IRS audit alone and wish they hadn’t.

IRS audit lessons you don’t want to learn the hard way:

• They missed the opportunity for an administrative appeal and are left with hard choices, like tax court or IRS tax debt with no way out.
• The IRS auditor found their tax and financial records were incomplete or too disorganized.
• The process was confusing because they didn’t speak the tax lingo of the IRS auditor.
• Staggering interest and penalties were accumulating the entire time they ignored or delayed the tax audit.
• They don’t know of or understand their legal and financial options for surviving an IRS audit or the tax audit follow-up process.
• They get stung with a large assessment for several years of previous tax returns, unfiled taxes, or back taxes – not just the year for which they were being audited.

If you find yourself at the brink of an IRS audit failure, a tax attorney can intervene and provide tax help in many critical ways. As your tax attorney, my job is to interface with IRS personnel on your behalf.

Last minute tax representation is always better than none. However, you have a significantly better chance to successfully navigate an IRS audit if you get a tax attorney on your side the minute you learn you’re being audited.

Jeffrey S. Gartzman, Atlanta Tax Attorney and CPA, has been providing Atlanta tax relief for over 28 years. If you are facing an IRS audit, contact Gartzman Tax Law to get a tax attorney on your side immediately. Call the Gartzman Law Firm today at (770) 939-7710.

Divorce can be difficult enough without the possibility of serious tax problems for one or both spouses. Here are some Atlanta tax resolution lessons to demonstrate how getting tax help can relieve financial damage from a divorce.


Lesson #1 – If you’re facing the hard truth that you might be getting divorced, tax planning can save you from IRS tax debt (and more marital strife).

There is a bright side to the realization you are facing a divorce: You have the opportunity to split and transfer assets in the most tax efficient manner – and to decide whether you’ll file jointly or separate as a couple.

Sometimes couples are separated for months or years before a divorce. In this situation, it is critical to examine whether you will file federal income taxes as joint or separate. If a couple files a joint return and then gets audited by the IRS, both spouses are on the hook for tax debt – regardless of who brought in more income, or who was more responsible with paying income taxes.

If you know your marriage might be on the rocks, seek your own Atlanta tax lawyer now and consider delaying your divorce until after you get tax help.


Lesson #2 – If you know your spouse has IRS tax problems, hire your own tax attorney during a divorce to protect your taxpayer rights and your bank account.

In the event one spouse has underpaid federal income taxes for the year, both spouses are at risk during an IRS audit if they filed joint on federal tax returns. It doesn’t matter if a state-issued divorce decree holds one spouse more responsible for Georgia state tax problems; in the eyes of the IRS they are both jointly responsible for federal tax debt.

Your spouse may be in hot water with the IRS, but you can hire your own Atlanta tax attorney to protect your rights. Ask your tax attorney or CPA if you qualify for IRS Innocent Spouse Relief or Allocation of Liability.

Work with an Atlanta tax attorney for expert legal counsel on managing IRS tax problems that go hand-in-hand with the legal complexities of a divorce.

If your pending or recent divorce has left behind problems with the IRS, back taxes, or IRS tax debt, Atlanta tax attorney and CPA Jeffrey S. Gartzman can help you with tax relief solutions. Don’t face divorce tax problems alone – get experienced financial and legal counsel on your side. Contact The Gartzman Law Firm today online or call (770) 939-7710.