Ponte Vedra IRS Tax Attorney

Ponte Vedra IRS Tax Lawyer

Federal tax issues can be terrifying and result in significant financial strain if not properly addressed. Minor mistakes, unfiled returns, or other issues can result in IRS (Internal Revenue Service) audits. Inaccurate records during an audit can result in monetary penalties, and evidence of fraud can result in criminal charges. It is important to secure the support of a Ponte Vedra IRS tax attorney if you have received notice of an audit or want to prevent future potential issues.

Even if an audit finds correct and accurate information, an attorney is important to help you navigate an audit successfully, with as little stress or hassle as possible. An attorney can help you negotiate a better outcome if you are behind on payments or need to address a mistake. They can also help you be more confident in the process of an audit and other IRS tax issues.

Tax Smith Tax Attorneys: Ponte Vedra IRS Tax Law Firm

The qualified attorneys at Tax Smith Tax Attorneys want to guide you through any IRS tax disputes, debts, or other issues. We understand how financially straining and emotionally stressful this can be for you and your family, as you rely on your income and business to protect and provide for your family. We aim for compassionate and understanding legal care as we help you understand your options in Ponte Vedra, FL, and prepare for an audit.

The team at Tax Smith Tax Attorneys has decades of combined experience in tax law and tax solutions. We have handled many audits and know what you can expect, enabling you to approach the process with more confidence. We can also look into options for resolving your tax debt. Our team can review your personal or business tax information and help prevent issues before they seriously affect your finances and your standing with the IRS.

Understanding an Audit

Audits occur for both individual and business taxpayers. An audit enables an agent to review your documents and information for your taxes to determine if that information matches the information claimed in tax forms. An agent may look over important financial documents, such as:

• Purchase receipts
• Bills and other expenses
• Employment information and income
• Healthcare information
• Bank account information
• Loan information
• Canceled or bounced checks
• Stolen property records

Audit documents may also be requested that you will then mail to the IRS. These documents are used to verify claims made in tax returns. Discrepancies may result in you being required to pay more in taxes.

Why Might the IRS Conduct an Audit?

Being audited does not mean that the IRS believes you are committing tax fraud. There are many reasons why the IRS may conduct an audit on your personal or business taxes, including:

1. There was an administrative or other potential error with your tax returns and other paperwork.
2. You were randomly selected for an IRS audit.
3. You have worked with or had certain business interactions with another party who was audited.

Both no-cause and for-cause audits should be taken seriously. An attorney is useful to protect your rights, even if you have done nothing wrong. The IRS agent will be looking out for their own agency’s interests, and an attorney can represent your interests.

Outcomes of an Audit

There are three main ways an audit can conclude:

1. The agent determines that there were no issues with your tax documents and payment.
2. The agent finds an issue and makes a corresponding change to the documentation and payment that you agree with.
3. The agent finds an issue, makes the change to documentation and payment, and you disagree with that change.

When there is an issue in your tax information that is an honest mistake, the IRS is unlikely to take any formal action. However, if the issue is the result of purposeful tax evasion or tax fraud, the IRS may take action to charge you as an individual or business. A conviction for tax fraud or evasion could result in penalties such as $100,000 in fines and up to 5 years in prison.

FAQs About Ponte Vedra, FL IRS Tax Laws

Q: Can a Tax Attorney Negotiate With the IRS?

A: Yes, a tax attorney can negotiate with the IRS for a settlement amount, payment plan, or other solution for your tax debt on your behalf. This can make negotiations less stressful for you and more likely to succeed. If you do not negotiate or pay, and instead ignore your back taxes, you could face significant penalties in the future, such as wage garnishment and other forms of asset seizure. By working with an attorney, you can negotiate with the IRS so that they receive part of the taxes they are owed.

Q: What Is a Tax Lawyer?

A: Tax attorneys operate in tax law and legal issues, and they are licensed to provide those legal services. A tax lawyer can provide assistance to individuals and businesses when filing taxes and tax returns, structuring a business, and during state or federal audits. A tax attorney is capable of handling tax legal disputes, tax settlement negotiations, and similar legal matters.

Q: What Is the Difference Between a Tax Attorney and a CPA?

A: CPAs (Certified Public Accountants) focus on financial preparation, accounting, and similar services, while tax attorneys focus on the laws surrounding taxes, tax disputes, tax planning, and document review. CPAs are educated about tax law, but they are not licensed to provide legal services. Understanding the difference between a tax attorney and a CPA is important to determine which professional can help you with your tax problems. For some individuals, they would benefit from working with both a tax lawyer and a CPA.

Q: How Much Will the IRS Usually Settle For?

A: Typically, the IRS will try to settle for an amount that it decides you can reasonably pay. In an Offer in Compromise, the IRS will review your assets and financial resources, your income, your expenses, and other relevant financial information. An Offer in Compromise or other settlement enables the IRS to recover some of the taxes they are owed where they may otherwise receive none, and it allows a taxpayer to settle their debt for less. There are also other potential methods to settle and limit tax debt.

Experienced IRS Tax Law Attorneys in Ponte Vedra

Contact Tax Smith Tax Attorneys for help reviewing and preparing for an IRS audit or any other IRS tax issue.