Ask a Tax Lawyer: “How to file 8 years of back taxes?”

Ask A Tax Lawyer I recently answered questions about back taxes on Lawyers.com and I recommend you review it to learn what you need to do in order to file 8 years of back taxes:

Question: What kind of lawyer do I need to file 8 years of back taxes? My wages have been garnished for the state taxes but I still need to file, is that correct?

Answer: a. If you need to file back taxes for any number of years, it would be best to contact an attorney who is skilled in both tax preparation and tax resolution. If the Internal Revenue Service does not show record of a return on file, they will often file a return for you. This information may be sent to your home state. This often leads to tax liabilities that are much higher than if you filed for yourself. This process does not give the taxpayer all of the deduction he or she would normally be entitled and the filing status is probably wrong. An experienced attorney in tax preparation and resolution can assist you in determining which tax years need to filed, filing those tax returns, and ensuring the returns are filed at the appropriate location within the confines of the Internal Revenue Service and the state. Additionally, if the Internal Revenue Service has filed a return for you, and in turn the state also, and there are balances; then an experienced tax attorney can assist you in handling collection enforcement, such as wage garnishments, liens, and levies in order to assist you in working towards a beneficial resolution.

b. In many instances, it is necessary to file both state and Federal tax returns. Some states have a program that can help reduce or eliminate penalties for filing late and paying late. Once penalties and interest are tacked on to the liability, the balances can become quickly unmanageable. An experienced tax attorney, can assist you with pursuing a resolution that could help you substantially reduce the balance owed. A tax attorney, can help determine which form of resolution such as a payment agreement, penalty waiver, or settlement agreement is more appropriate.

Question: My wages have been garnished from the state, but I still need to file. Is that correct?

Answer: Yes. Some states receive wage and income information from the Internal Revenue Service which they use to file tax returns on your behalf. Often these returns result in higher tax liabilities because you are not afforded the maximum deduction you would be entitled, if you filed the returns yourself. Once these substitute returns are filed by the state, the state will begin collection enforcement such as liens, levies and wage garnishments. In many instances, the state will not be willing to work with the taxpayer in resolving the liability until these returns are filed. In fact, filing these returns could result in lower balances or in some cases, no balances at all.

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How to Find a Legitimate Tax Relief Professional

Legitimate Tax Relief ProfessionalMillions of Americans owe back taxes to the Internal Revenue Service. If you are among them, it’s time to come clean and get tax help before the IRS takes action to collect your tax debt.  The best way to come out a winner against the IRS is to arm yourself with a reputable tax professional who will provide effective and experienced legal counsel, and fight for your rights as a taxpayer.

It doesn’t matter why you’re in arrears, whether you’re bad at math, suddenly unemployed, or the victim of an unscrupulous spouse or business partner. The only thing the IRS is interested in is collecting unpaid back taxes or full tax debt owed – however they can. Once they have you in their sight, not only do they want their tax money, but you will be charged penalties and interest that can double or triple your original debt. The IRS may have little interest in your specific circumstances. They are adept at using whatever tactics necessary to hound, threaten and take legal action to collect back taxes owed.

Sounds hopeless, doesn’t it?

It isn’t. A seasoned, ethical tax professional has the training and experience to guide you through this quagmire with your dignity and bank account in good shape. They are intimately familiar with the ins and outs of the 70,000+ page tax code, and their loyalty lies squarely with the client. The government has a big gun in the IRS. You deserve to bring an equally effective weapon when you get called to the OK Tax Corral.

There are many types of tax professionals.

CPA (Certified Public Account) vs. Tax Preparer
You’ve probably gone crawling on your knees to a Certified Public Accountant or tax preparer more than once in April. If so, then you know that these are folks who prepare your taxes correctly (and, one hopes, advantageously) and help keep you out of trouble with the IRS. A tax preparer may have little to no training, or he may be a retired CPA who knows there’s plenty of work during the April rush. However, a CPA is a licensed professional who has fulfilled training and examination and work experience procedures and hopefully is a member in good standing with their state society of CPA’s and state licensing board.

Enrolled Agent
There are also enrolled agents. According to the IRS web site, “An enrolled agent is a person who has earned the privilege of practicing, that is, representing taxpayers, before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants (CPAs), are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before.” Enrolled agents must pass a rigorous examination and have a track record of practical experience.

Tax Attorney
Finally, a tax attorney is a licensed legal professional who understands tax law and taxpayer legal rights. Typically they have a broader and more detailed perspective of your tax problems and other legal problems. In addition to a law degree (JD), many tax attorneys have an undergraduate degree in tax accounting or business. Some tax attorneys also have a graduate degree, such as Master of Laws (LLM), a Master’s in Business Administration (MBA), or specialized accounting certification as a Certified Public Accountant (CPA). They should have extensive experience and connections in order to keep abreast of changes in tax law, federal and state tax policy. Tax attorneys may know the IRS lawyers and IRS agents in your local district and understand the proper legal channels at the IRS locally and federally. They should be members in good standing with their state bar association. They will probably cost the most, but will probably deliver the best results.

If you’ve ever tried to tame your insomnia with late night television, you’ve probably seen commercials for companies promising they will help you negotiate your back tax debt with the IRS for nothing or pennies on the dollar. You may also have heard that some nationally known TV advertisers who handle IRS problems have been investigated and sued by their State Attorney General’s offices for allegedly swindling clients. Fortunately, these national TV advertisers represent the minority of tax professionals. A good tax attorney is worth his or her weight in gold, and there are a lot of ways to separate the wheat from the chaff.

Your State Bar Association has a list of attorneys in your area who are in good standing. However, you need to find those that handle tax matters. If you already have a relationship with a family lawyer or some other kind of attorney, you can ask him or her for a tax professional recommendation. Once you have a preliminary list, go to your state’s attorney general’s web site and the Better Business Bureau and research them. You can also do a general Internet search to see if any of the candidates have specific complaints against them. Ignore the individual flamers; look for patterns of complaint, rather than one or two disgruntled apples.  Remember there are two sides to every story.

Contact the tax professional for an initial phone or office discussion to see whether they can and want to handle your unique problem. Ask about their attorney fees.  Ask them about their experience and success rate with your type of issue and generally what sort of outcome you can expect.

If they claim they eat the IRS for breakfast and none of their clients ever have to pay the government a cent, run for the hills. You owe the IRS money. Unless you are in a coma or deemed Currently Not Collectible, you will not get off scot free. Make your peace with that. What your tax professional can do is help negotiate for you to pay only what you owe, on terms that hopefully won’t cripple you.

Depending on your particular issue, a good tax attorney or other tax professional can smooth the way to freedom from the IRS. The calls will stop, the collection letters will stop and you’ll be able to sleep through the night again. Normally you can’t buy that kind of peace of mind, but a tax attorney can provide it.

About Jeffrey S. Gartzman, Atlanta Tax Attorney and Certified Public Accountant
Jeffrey S. Gartzman is an accomplished Atlanta tax attorney and CPA who has been practicing tax law in Atlanta for nearly 30 years. He will help you resolve IRS and state tax problems, find tax relief and settle tax debt. Jeffrey S. Gartzman is a former IRS Taxpayer Education Program instructor. He is also an accredited Personal Financial Specialist with the American Institute of CPAs.

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Be Smart About Your Small Business Taxes and Hire a Tax Attorney

atlanta small businessSmall business owners are targets for a record year of increasing IRS tax audits. If you are an Atlanta small business owner, you probably have an accountant and an attorney on speed dial. But if you don’t have an Atlanta tax attorney who specializes in business taxes, you could get eaten alive by the IRS.

Are you filing as the right business entity?

I see it happen every year: a small business owner with LLC status files business taxes as an S-corporation. To file as an S-corporation, a business owner must first elect to be taxed as an S-corporation, and some accountants and attorneys can overlook this tax law detail. If you don’t file this election, you will inadvertently set yourself up for IRS tax problems like back taxes. As a last attempt at tax relief, your tax attorney might work with the IRS to recognize S-corporation status retroactively.

Whether you are facing IRS collection efforts of business back taxes, or you’re questioning whether you’ve filed income taxes correctly, an experienced tax attorney and CPA can help you by:

  • Filing or reviewing your state and IRS income taxes correctly
  • Interfacing with the IRS collection agents, auditors, or IRS attorneys so you don’t have to
  • Taking control of an IRS collection effort or IRS tax audit and guiding you through the process efficiently
  • Explaining the options and opportunities you have for business tax relief – that you might not be aware of or capable of pursuing without tax representation

Small business owners need tax law specialists

Your small business is your entire financial foundation. Dealing with back taxes, IRS collection efforts, or an IRS audit without a tax attorney may be like trying to ride out a hurricane without shelter. Learn more about what to expect during an IRS tax audit in my post on How to Survive an IRS Tax Audit.

Accountants are specialists who work hard to bring order to your finances and present your business bottom line. But if your accountant is your only source of tax information, hire a tax attorney for tax law expertise and to negotiate on your behalf with the IRS. It’s your job to focus on your business, and a tax attorney and CPA will handle business tax returns or IRS audits the right way to minimize impact to your operations.

An Atlanta tax attorney can provide tax help to small business owners to meet IRS deadlines, make sure you don’t miss opportunities for a tax appeal, and to try to waive penalties or decrease the amount of penalties and interest that could break the bank.

With combined expertise as an Atlanta tax attorney and CPA, Jeffrey S. Gartzman offers Atlanta small business clients the legal counsel and sound financial advice they need to survive IRS tax problems. If you need small business tax help, contact the Gartzman Law Firm today at (770) 939-7710.

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Why You Shouldn’t Wait to Get Tax Help

Get Tax Help from Atlanta Tax Attorney Jeff GartzmanWhen you owe the IRS back taxes or you’re facing tax debt, a common reaction is to avoid the IRS out of fear or confusion. People may think they can’t afford to pay their back taxes, so what difference does it make? If you don’t take action to get tax resolution, you can lose rights you may not realize you have and accumulate significant interest that makes the situation much worse.

You have the right to an appeal

Taxpayers who receive a notice from the IRS that they owe unpaid taxes may have the right to file for a Collection Appeal Procedure or a Request for a Collection Due Process hearing of the IRS findings. If you don’t act before the IRS does, they will make an assessment of your owed back taxes and start collection action right away. This puts you at risk for liens, levies on your wages of bank accounts, seizures of property, and shutting down your business. Your tax attorney can review your appeal rights, intervene on your behalf, and walk you through the appeal or hearing process.

File your own taxes – don’t let the IRS do it for you

Sitting on your unfiled tax returns is like inviting the IRS to file them for you. If the IRS files your return – called a Substitute for Return (SFR) – the results are almost guaranteed to be unfavorable for you. Fighting the SFR is time consuming and takes considerably more effort than getting IRS tax help from the start. Getting help from a tax attorney means they will intervene with the IRS and file a tax return based on your actual tax information.

Avoid back tax interest and penalties

Another advantage of getting tax help right away is that you can avoid accumulating significant interest and penalties on your tax debt. Hire a tax attorney to face your IRS problems and you could avoid the headache and increased debt that avoidance will likely cause.

A tax attorney will help you with solutions to IRS tax debt, like installment plans, payment options, Offers in Compromise, the proper legal procedures, and – most importantly – educating you about your legal rights as a taxpayer.

Jeffrey S. Gartzman is an Atlanta tax attorney and CPA who has been helping people in Atlanta resolve tax problems since 1982. He specializes in tax law and will expertly represent you during an IRS appeal procedure and in dealing with IRS problems. To get the tax help you need, contact The Gartzman Law Firm today at (770) 939-7710.

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The 90 Day Letter: Tax Help When You Get a Notice of Deficiency from the IRS

The 90 Day LetterIn some cases, the first word a taxpayer hears from the IRS that they’re in tax trouble is a Notice of Deficiency Letter, called a 90 Day Letter. This letter is issued after the IRS has performed an audit of your taxes or proposes adjustments – and it can come as a surprise.

A Notice of Deficiency gives you ninety days to take action before the IRS does. If you receive this letter, don’t wait to seek tax help.

Get a tax attorney on your side immediately

An experienced tax attorney will help you file a petition in the United States Tax Court to keep the case open to dispute the IRS proposed adjustments to your tax return. Removing this ninety day deadline will help your tax attorney guide you through the appropriate channels for tax relief.

An IRS attorney will be assigned to your handle your case – against you. Hiring a tax attorney to represent you will ensure there’s a fair bridge between you and the IRS. They will deal with the IRS attorney on your behalf. Atlanta area taxpayers are at an advantage by hiring an Atlanta tax attorney, because chances are the IRS attorney on your case, and possibly the Appeals officer, will be from the local IRS Atlanta office and may be professionally familiar with the person representing you.

Ask your tax attorney about an Appeals Settlement with the IRS. When you work with a tax professional instead of on your own, it’s more likely that your tax settlement will be for less than what the IRS said you owed.

Jeffrey S. Gartzman is an Atlanta tax attorney and CPA who has been helping people find tax relief for over 28 years. He will help you with tax resolution, tax problems, and settling back taxes. To get the tax help you need, contact The Gartzman Law Firm, P.C., today at (770) 939-7710.

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How to Get Tax Help in 3 Easy Steps

Jeffrey S. Gartzman - Atlanta Tax AttorneyIn the 28 years that I’ve been helping individuals and businesses who are facing IRS tax problems and tax debt, I’ve learned there is a simple and direct approach to getting the tax help you need.

Whether a taxpayer is facing an IRS audit or paying back taxes, you can do these three things to get tax help:

#1: Hire a professional as soon as possible
The longer you wait, the deeper the hole. Get tax relief help from a tax attorney, CPA, or other tax professional. There are significant benefits to working with a tax attorney and CPA, such as the knowledge base and IRS connections to get you through the entire tax relief process from start to finish.

#2: Get organized
If the IRS is after you, getting your tax data and information in one place is necessary, not optional. A tax professional or tax attorney can walk you through this process and tell you what files, receipts, and other data are required.

#3: Bring your official notice
Be sure to retain any and all or notices sent to  you by the IRS or state tax revenue department. Bring these notices to your tax attorney or CPA so they understand what you’re facing.

No matter what tax debt situation you face, or how critical a taxpayer perceives their situation to be, the best way to find the tax help you need is to hire expert guidance.

Move forward and don’t sit in your tracks! Tax problems don’t go away on their own, and not all tax professionals are the same. Bring your tax debt case to someone who helps with IRS tax relief on a daily basis and understands all routes and procedures.

Jeffrey S. Gartzman is an Atlanta tax attorney and CPA who has been helping people find tax relief for over 28 years. He will help you resolve IRS and state tax problems, find tax relief and settle tax debt. Mr. Gartzman is an accredited Personal Financial Specialist with the American Institute of CPAs. To get the tax help you need, contact The Gartzman Law Firm, P.C., today at (770) 939-7710.

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