Tax Deduction and Exemption Facts Everyone Needs to Know

Friday, March 27th, 2015

Almost anybody can claim an exemption when they file a tax return. This lowers the amount of taxable income. Some of the top tax deduction and exemption facts that everyone should know include:

  • In addition to a personal exemption for yourself, an exemption is also allowed for each dependent, as long as certain qualifying factors are met. In order to claim someone as a dependent certain criterion must be met. You are almost never allowed to claim your spouse as your dependent. Any dependent claimed must have a valid social security number.
  • Choose to electronically file your taxes. E-file is the most effective way to ensure that you file a tax return that is accurate and complete. There are a number of software programs which can be used. These programs assist in determining the right exemptions for your tax return.
  • A dependent’s return cannot include a personal exemption for the dependent that you can claim. In other words, even if you choose not to claim the exemption for the dependent, he or she cannot claim their own personal exemption on their own tax return.
  • Tax exemptions cut the taxable income you have. There are generally two exemption types of exemptions. One is the personal exemption and the other is the dependent exemption. Each of these exemptions will deduct approximately $3,950 from your income on your tax return for 2014.
  • Typically a taxpayer is allowed one personal exemption for themselves. For those who file married, filing jointly, a personal exemption can also be claimed for your spouse. Anyone filing a married, filing separate, return may be able to claim a personal exemption for a spouse if the spouse did not have any gross income, if the spouse is not filing a tax return for 2014, and the spouse could not be claimed as a dependent on the tax return of another taxpayer.
  • In most cases a married individual cannot be claimed as a dependent if they are filing a joint 2014 tax return with their spouse. Some exceptions do apply, so professional tax assistance may be needed in some situations.
  • The 2014 exemption amount of $3,950 is subject to certain limits on income. IRS Publication 501 can provide further details. If your income amount is subject to the exemption phase out, the amount of the allowable exemption may be reduced or even eliminated.
  • The website offers a tool called the Interactive Tax Assistant which can help taxpayers determine if a person meets the qualifications of a dependent or not.

Anyone who can be claimed as a dependent on your tax return for 2014 may still have to file their own tax return. There are a number of determining factors which include the income amount of the dependent, the marital status of the dependent, and whether or not they owe certain types of taxes.

The IRS Takes Advantage of Taxpayers Who Do Not Know Their Rights

Friday, February 27th, 2015

According to taxpayer advocate and Dallas based tax attorney Nick Nemeth the IRS takes advantage of taxpayers who do not know or fully understand their rights under the US tax code and the current laws. In this situation IRS agents may violate the rights of the taxpayer in the hope that the individual does not realize this is happening. Americans have a set of fundamental rights whenever there is a dispute or even contact with the Internal Revenue Service, but it is up to the taxpayer to know what these rights are so they are aware of it if one of these rights has been violated.

Privacy and confidentiality is critical when it comes to taxpayer information and account details. This government agency is responsible for making sure that all employees keep taxpayer information private and confidential, and that the taxpayer account is only accessed for authorized government reasons. The taxpayer also has the right to be kept informed about their account and any tax liability or IRS actions and decisions that affect the account. This also means that the agency has the responsibility to be clear so that the taxpayer understands what they need to do to comply with agency demands, requirements, and communications.

Every taxpayer who has any contact at all with the Internal Revenue Service has the right to expect a certain level of professionalism and quality customer service according to IRS lawyer Nick Nemeth, an attorney who represents taxpayers with IRS problems. IRS agents should provide prompt service, courteous responses, and assistance which is professional and which provides the proper respect and dignity for the taxpayer. Ay taxpayer who has been treated in a manner that is inconsistent with the taxpayer rights can speak with a supervisor at the IRS to discuss the service that they received. The agency must allow a taxpayer to choose a representative to deal with the IRS on behalf of the taxpayer, and the choice of representative is up to the taxpayer and not the agency.

Nick Nemeth advises taxpayers that the IRS has a responsibility to determine and assess a tax liability that is appropriate and correct. If a taxpayer disputes the agency position then the individual has the right to appeal and challenge the disputed claim. The appeal must be heard by an independent forum, and the taxpayer has the right to take the IRS to court if they feel this is needed as well. The Internal Revenue Service has a responsibility to the taxpayer to provide finality, so that the taxpayer has a clear answer about what is owed, when something is due, and even how long the agency can try to collect on a tax debt.

Tax attorney Nick Nemeth works with taxpayers and provides assistance with IRS tax disputes, and he has helped many individuals and business owners resolve IRS tax problems. Don’t let the IRS take advantage of you. Taxpayers who know about their rights are more likely to prevail in any dispute with the Internal Revenue Service.

It Doesn’t Have to Ruin Your Life: Four Ways to Minimize the Damage from an IRS Tax Dispute

Tuesday, August 26th, 2014

Minimize the Damage from an IRS Audit

A tax dispute with the IRS is the stuff of nightmares for almost every taxpayer, causing sleepless nights and making many taxpayers break out in a cold sweat at the thought of this situation. There are many horror stories about the IRS and the abuses that this agency has performed in the past. The odds are at least one friend, relative, or coworker has found themselves in a tax dispute with the IRS and ended up losing money, time, and even sleep because of it.

The IRS can be quite aggressive, this can be seen with firsthand stories and actual cases where this agency has overstepped heir boundaries or with agents who were out of control in attempts to collect a tax debt that they believe is owed. It is important for consumers to understand that you can keep control in a tax dispute with the IRS but only if you act quickly and know what steps to take to keep this type of situation from spiraling out of control. There are strategic mistakes that can make your situation worse, and these should be avoided at all costs.

4 Steps to Take Right Away With Any IRS Tax Dispute

1) Contact an experienced attorney who deals with the IRS on a regular basis, one who understands this agency and the current tax laws very closely. Trying to take on the IRS without an attorney is usually a big mistake, one that can be very costly. The IRS will try to be aggressive, intimidate you, and even bully you into complying with their demands. An experienced tax attorney will not be bothered by these scare tactics though, because the IRS attorney knows the law and the limits of this government agency. An attorney can put the IRS in check for you, providing support and legal advice every step of the way.

2) You should always take care to meet any deadlines. It may be tempting to ignore the issue or bury your head in the sand but this will not make the IRS or any tax debt go away. The IRS is not going to forget about you or disappear. By missing deadlines or ignoring the problem you are making things worse, and you will end up paying more in any interest and penalties that are accumulating.

3) Gather all documents and documentation that you will need and put these in order. When you are involved in any tax dispute with the Internal Revenue Service documentation is critical. The more you can document the data and information on your tax returns and filings the better you will be to defend these filings and be successful in any tax dispute with the IRS. Get all of the documentation for your tax dispute and keep it together in an organized fashion.

4) Only provide what the IRS asks for. Many taxpayers want to show complete cooperation, and this often means turning in more than what was requested by the IRS. When this is done the IRS is given the opportunity to closely examine all of the information and documents provided, not just the information that they asked for. This can complicate the tax resolution situation even further and actually make things worse. Only provide the information and documents that are requested by this agency and nothing else.

No one wants a tax dispute with the IRS, but if one is started it is essential to take action quickly in order to minimize the damage. An experienced tax attorney can help. Contact us today and let us deal with the IRS for you!


Don’t Get Suckered: Five IRS Myths Exposed

Wednesday, August 20th, 2014

5 Biggest IRS myths

Any taxpayer feels a bolt of fear when they look in the mailbox and see correspondence from the IRS, or when they answer a phone call and it is the IRS on the other end of the line. This government agency is the most well known, the most feared, and the least liked out of all the government agencies, and for very good reasons. The Internal Revenue Service has a variety of powers, and this agency can make the life of any taxpayer miserable when the taxpayer does not comply or understand their rights.

The IRS uses fear, exaggeration, and intimidation as scare tactics so that taxpayers comply without protesting or consulting a qualified and experienced tax attorney. There are a number of myths and false strategies that are widely available which many tax payers believe, and hopefully this article will correct this inaccurate information and expose the truth about the IRS and what this agency can do.

Myth 1: The IRS Only Audits High Income Earners

Fact: If you are a high income earner then you have a higher risk of being audited by the IRS but even low income earners may be audited in any given year. Every single tax return that is filed for the year has the possibility of being audited, no matter how simple the return may seem or how low the income reported is on the tax return. If you assume that this government agency will not audit you because of your lower income then you could be creating future IRS problems and tax disputes for yourself in the future.

Myth  2: You Can Not Avoid Paying Your Tax Bill In Full

Fact: The IRS wants every taxpayer to pay off the full amount that this agency claims is owed, and IRS agents will not usually be quick to explain that there are alternatives for taxpayers, The truth is that taxpayers have a number of options and programs available to settle IRS tax debts and tax disputes. A qualified tax attorney with experience dealing with the IRS can help taxpayers navigate the paperwork and applications necessary in order to access programs which can assist with resolving tax debts for less than the full amount.

Myth 3: Ignoring the IRS and Dragging Your Feet Will Make the IRS Go Away

Fact: This is a strategy that many taxpayers use, but it will not help resolve a tax debt and it is a big mistake. Ignoring this powerful government agency will not cause them to go away, it will only compound the problem and create additional problems, penalties, and interest amounts for the taxpayer. Meet the problem head on, and contact an experienced IRS lawyer for advice.

Myth 4: The Collection Powers of the IRS are Unlimited

Fact: It is true that the IRS is a very powerful government agency, and they have a wide range of options in their attempts to collect a tax debt that is owed. The powers of the IRS are not unlimited though. This agency can freeze accounts, seize assets, and even cause companies to close down,. In serious cases the IRS can even file criminal charges against a taxpayer that could result in jail or prison time if the taxpayer is found guilty. In spite of all these powers there are still rules, regulations, and laws in place that IRS agents must follow. An IRS attorney can help the taxpayer understand the rules, and ensure that the IRS follows them.

Myth 5: Leaving the State or Even the Country Can Stop the IRS

Fact: It is not possible to out run the IRS, this agency will usually find you no matter where you go. You should never underestimate the ability of the IRS to track down a taxpayer who owes a tax debt. Instead of running contact a tax dispute attorney and meet the problem head on.

Enough Already… Put Your IRS Tax Controversy Behind You!

Monday, August 11th, 2014

Move on past an IRS Controversy


A tax dispute with the IRS is the stuff of nightmares for a taxpayer. This agency of the government is very powerful and incredibly intimidating, and they are not above using bullying and other scare tactics in order to take every penny that a taxpayer has with all possible collection efforts allowed. The IRS can seize bank accounts, freeze assets, garnish wages and earnings, and even close down legitimate businesses and put taxpayers in jail in some situations. With all of these collection powers it is easy to see why taxpayers are fearful of the IRS.

We have listed 4 very important facts that taxpayers need to know so that they can put any IRS controversy behind them, and move forward without any tax disputes or IRS problems.

1) The IRS will take advantage of taxpayers who do not have legal representation. The IRS is supposed to follow various rules and regulations, and these were put in place to protect taxpayers and ensure that the IRS complies with all laws when it comes to collecting tax debts and settling tax disputes. Taxpayers who fail to get an experienced tax attorney on their side may not get far when dealing with the IRS, because the agency may try to step outside of the rules and regulations due to no one being present to keep the agency in check. Having an experienced tax attorney will keep any IRS agent honest and ensure that all rules and regulations are followed.

2) Waiting will only make problems with the IRS worse. It may seem like waiting or putting off any action is the best choice but this is actually the worst thing that a taxpayer can do. No one wants the stress or hassles of a tax dispute with the IRS, but burying your head in the sand and ignoring this type of problem will not cause it to disappear. Immediate action is needed though, because the IRS will not stop until a tax dispute is resolved. The more you put this type of problem off the higher your financial penalties and interest amounts will be. Instead of ignoring the situation contact a qualified tax attorney right away.

3) Only provide the specific information that the IRS has asked for, and nothing else. Providing more information than what is requested will allow the IRS to scrutinize all of the additional data and documentation submitted, and this can invite eve bigger problems. Taxpayers do not have to exceed the information request by the IRS, only provide the exact information that is requested by the agency.

4) There are IRS settlement programs available that will allow taxpayers to save money and resolve any tax dispute or controversy with the IRS at the same time. If a taxpayer owes a large tax debt to the IRS the first reaction may be panic and fear. Coming up with an amount that the IRS claims is owed may be impossible, but there are programs that can resolve tax debts for less than the full amount in many situations. Contact an experienced and qualified tax attorney as soon as possible to see what tax dispute relief programs you may qualify for.

Any taxpayer who is facing a tax dispute with the IRS is under a great deal of stress, but there is help available for those who are willing to ask for it from a tax attorney.


Don’t Let the IRS Pull a Fast One: Five Ways the IRS Takes Advantage of Taxpayers

Wednesday, July 9th, 2014

Screenshot 2014-07-09 10.15.29

A dispute with the IRS over taxes is the last thing that any taxpayer wants to engage in. This is a government agency with a reputation for intimidation and fear tactics, and the collection process used by the IRS can be quite brutal and aggressive. On top of this the tax code is so complicated that few taxpayers understand it, and the IRS is well aware of this fact and will use it to their advantage if the taxpayer lets them. Agents for the IRS may get away with actions and threats that are not allowed if the taxpayer does not have an experienced attorney and understand their rights completely. There are ways to get out of debt and avoid abuse.

This article will cover 5 common ways that the IRS may try to take advantage of uninformed taxpayers who do not have an experienced tax dispute attorney representing them. Make sure this does not happen to you, never take on the IRS without consulting an attorney who understands this agency and the tax code.

1) The IRS will take full advantage of any lack of knowledge that the taxpayer has. Since most taxpayers are not extremely knowledgeable about the US tax code the IRS will use this to their advantage. An IRS agent will typically not tell you that there are options or that you have rights, even if it means that you pay every penny you have and do not take advantage of programs and savings that are available. You should always have an experienced tax attorney with you before you try to take on the IRS, otherwise you will be like David facing down Goliath but you will probably not win the battle.

2) The IRS will not stop until they get what they want, making the taxpayer miserable in the process. This agency has a wide range of powers that can be used against a taxpayer, and the IRS may even cross the line at times unless the taxpayer stops this by having a tax dispute attorney on their side. The scare tactics and intimidation used by the IRS can include phone calls involving threats, letters meant to intimidate the taxpayer, and even personal visits from a revenue agent at times. A lawyer who has experience dealing with the IRS will protect the rights the taxpayer has and resolve any tax dispute without these types of intimidation.

3) In many cases the IRS will not inform a taxpayer of the rights that they have, and the agency will take advantage of the lack of knowledge that the taxpayer has in this area. An IRS dispute does provide certain rights for taxpayers. If you are not aware of your rights then this gives the IRS an advantage. It is important to have a tax lawyer with IRS experience on your team so that the IRS must play by the rules or be held accountable.

4) The IRS loves taxpayers who are honest that provide additional information, and this is a common mistake made. Many people want to comply with an IRS request, and they tend to give this agency more than what they were asked for. Most of the time the IRS wants to gain the upper had, and they will use information provided by the taxpayer to do this if possible. Get an attorney and don’t give the IRS this opportunity.

5) Some of the most effective tools that the IRS has are fear and intimidation, and this agency uses these tools on a regular basis. The power that IRS agents have can be extremely intimidating, and taxpayers fear garnishments, property seizures, and even incarceration because this agency has the ability to do these things. Hiring a tax attorney will keep the IRS in line, because this legal professional knows what the IRS is allowed to do and when they cross the line.


Facing IRS Controversy: Where to Begin

Wednesday, July 2nd, 2014


Any taxpayer who has ever faced a tax dispute with the IRS understands how stressful and overwhelming this can be. Our office has seen the devastation that a tax dispute can cause, and how it can make life almost unbearable for taxpayers. No matter how bad your situation may seem it is important to remember that there is a solution available that can resolve your tax controversy with the IRS.

The most important thing to remember is to face this problem and head it off early rather than ignoring the issue. You may feel overwhelmed but ignoring this situation will not make it go away, the IRS will just keep coming and will not simply disappear. The five places to start taking action if you have a tax dispute with the IRS include:

1) Consult with a tax attorney who has experience dealing with the IRS. It is never a good idea to try to take on this government agency without a good lawyer who understands the tax code. The average American taxpayer does not understand the tax code because this code is so massive and complicated, but the IRS does because the agency is responsible for the tax collection. You need someone on your side who understands IRS rules and regulations so that you have a fighting chance and do not get taken advantage of.

2) As soon as you realize that there is a tax dispute with the IRS gather all relevant records and documents that you have and organize them. When dealing with the Internal Revenue Service records are critical, and the more information and documentation you have available the better. Get everything together as soon as the IRS informs you that there is a tax dispute so that you are prepared.

3) Always meet any deadline that the IRS gives you. When you are notified of a tax dispute the IRS will detail the information that the agency wants and the time frame when this must be provided. If you miss deadlines this will just compound the problem and inflate any interest and penalties that you will be assessed. Why make things harder on yourself? Pay attention to IRS deadlines and meet them whenever possible, the dispute process will be easier and less painful on you.

4) Only give the IRS the details and information that has been requested, never provide more than what you were asked for.  You may be tempted to send extra documents and information that was not requested, especially if you did nothing wrong, but this error can be a huge mistake. The added information will not typically help your case, but you could be allowing the IRS the opportunity to scrutinize your situation even further. The situation could become worse as a result of your effort to go above and beyond the IRS request.

5) Know what your options are. Before you can decide which option to take you need to know what your choices are and what options you have to choose from. Is paying the full amount that the IRS claims impossible? Would you be able to make a payment plan and keep to it?  Are there any IRS programs that you would qualify for which may help eliminate some of your tax debt? Few IRS agents will explain your options clearly so that you know what you can do in this situation. An IRS attorney or qualified tax lawyer can help explain your various options.

If you have been notified of an IRS tax dispute taking action is important. This problem will not simply resolve itself, and you need someone on your side!



IRS Tax Controversy: Six Ways the IRS Will Make Your Life Miserable if You Owe Them Money

Monday, June 30th, 2014


Few people in America would describe the IRS as a popular agency of the government, in fact this agency has some of the lowest ratings of any organization. Why is this though? The IRS has caused many lives to be ruined, and they have devastated households and families across the country.

If a taxpayer owes a tax bill there are a variety of aggressive collection methods and tactics that the IRS can use in order to collect the amount that this agency claims the taxpayer owes. The IRS has a reputation as the most aggressive collection agency. When the IRS decides to target a taxpayer for a tax dispute they will use all of their powers and the full force of this government agency in order to meet this goal, and make your life miserable in the process.

If you are involved in a tax dispute with the IRS you  will find that the agency may:

1) Send you letters with threats, or make demanding phone calls. This can be nerve racking for typical taxpayers, and the threatening letters and obnoxious phone calls will not stop until the tax dispute is resolved. This is usually the first step in the IRS collection process, and ignoring these contacts will only escalate matters and cause the IRS to step up the aggression with their collection efforts.

2) Visit you, either at home or at work, to discuss your tax dispute. No one wants an IRS agent to suddenly appear and pay a personal visit to discuss a tax controversy. This agent will explain the tax dispute and the position of the IRS, and they are not usually very friendly or helpful during the process. Often this discussion includes threats of severe financial penalties if you do not comply with the IRS demands.

3) If the first two steps do not resolve your tax dispute and force you to pay what the IRS says that you owe then the agency will start assessing considerable penalties and substantial interest on top of the amount that the IRS claims the taxpayer owes. The longer the situation stays unresolved the higher these financial penalties will be. In many cases the interest and penalties can be just as big as the unpaid taxes that the agency claims you owe.

4) Usually wage garnishment is the next step that the IRS will take in order to collect any unpaid taxes that they believe you owe the government. Unlike most creditors the IRS does not have to take the taxpayer to court or get permission from a judge before garnishing your paycheck, and they do not care about your financial situation or that your pay is what you need to live on and take care of your family.

5) Another way that the IRS can make your life miserable when you are involved in a tax dispute with this agency is to seize your property. The agency can actually seize property that you legally own, and then sell off this property in order to satisfy any tax debt that you owe. This property can include vehicles, boats, and even your home or business at times. Many Americans are surprised to learn that the IRS has the power to seize personal property because this seems to go against everything that the country stands for, but the reality is that the IRS can and will do this is you do not resolve a tax debt.

6) If all other collection methods fail the IRS can file criminal charges against a taxpayer, and this can lead to further fines and possibly even jail or prison in some cases.

These collection methods and actions explain the unpopularity of the IRS, The good news is that an experienced tax attorney can help you resolve a tax dispute before things reach these stages. Sometimes it is even possible to settle a tax dispute with the IRS for less than the full amount owed, but only if you address the issue immediately and do not delay or ignore the problem.


IRS Tax Controversy: Three Reasons for Optimism

Tuesday, June 24th, 2014


3 reasons to be optimistic in the face of an IRS controversy

Death and taxes are the two inevitable events in life, and no one wants to die but for many this may be preferable to dealing with the IRS or trying to resolve a tax dispute. That is a sad commentary on this government agency when death is more popular than the IRS.

No one volunteers to be part of a tax controversy with the IRS, and no sane person would want to be caught up in this type of situation. There is reason for optimism if you find that the IRS has a tax dispute with you though, and there are options available for taxpayers who are informed and who know their rights. Listed below are three reasons for optimism when dealing with the IRS over a tax dispute. Remember that you must take action though, this problem will not just disappear or go away without any effort on your part. You should contact a qualified IRS lawyer as soon as you realize there is a tax dispute.

3 big reasons for optimism if you are facing a tax dispute or IRS scrutiny include:

1) A experienced IRS attorney will help you deal with this agency, and they can face the IRS in your place so that your life is less stressful. As soon as the IRS determines that there is a tax dispute he harassment and stress starts. You will start to receive threatening letters, nasty phone calls, and even visits from IRS agents at your home and place of employment. Who wouldn’t feel intimidated in this situation? For most people these measures alone may be enough to get payment, just to stop the stress and the constant contact. When you have an experienced lawyer on your side then this legal representative can negotiate with the IRS on your behalf. Your attorney can negotiate so that the agency stops contacting you, giving you some relief from the stress.

2) If you have a tax dispute with the IRS then a qualified attorney can make the IRS follow all of the rules and regulations, and this can make the agency back off and give you some breathing room. A common tactic used by IRS agents is to try and pressure the taxpayer into coughing up what the agency says is owed, even if this means stepping over the line and breaking the rules in the process. With a tax attorney you can force the IRS to play by the rules and put an end to the pressure. Make the agency stay within their legal authority, and call the IRS on it when the rules and regulations are not followed closely by having a lawyer who understands the tax code and the laws.

3) In many cases it is possible to settle a tax debt for less than the full amount that the IRS claims you owe. There are programs available but the IRS does not widely publicize these options to taxpayers, so most people do not even realize that paying less than the full amount may be possible. The agency does not advertise these programs because the hope is that bullying and intimidation will get the desired results. When you have the legal advice of an experienced IRS attorney this is a possibility though. The IRS makes a settlement difficult but your attorney will be able to negotiate this option and you may be able to reduce your tax debt and will show you how to avoid future tax issues in the first place.



IRS Tax Controversy: Five Facts to Help You Avoid IRS Trouble

Tuesday, May 6th, 2014

For most taxpayers an IRS tax dispute is the stuff that nightmares are made of, and this can cause fear and anxiety in the most honest taxpayer. This government agency has a reputation for being highly aggressive and unforgiving, and this reputation is well earned.  IRS revenue agents have a wide range of powers at their disposal. These agents can garnish earnings and paychecks, seize property and freeze accounts, and even take your home or put you in jail at times.

As experienced IRS attorneys we see the devastation that the IRS can cause on a regular basis if the taxpayer does not take quick action to prevent it. If you are in a tax dispute with the IRS then you should contact a qualified tax attorney as soon as possible.

The best way to avoid being intimidated and bullied by the IRS is to avoid a tax dispute entirely, and there are five facts that can help you do this.

1) The IRS understands the tax code, but they are betting on the fact that most taxpayers do not understand this code and they will take advantage of the lack of knowledge that a taxpayer has. If you do not have a tax attorney on your side then you are at a disadvantage right from the start. Every year the United States tax code gets longer and more complicated, and taxpayers can not keep up unless they are continuously educating themselves on these changes. An experienced lawyer will be aware of the changes and stay on top of the tax code each year.

2) Computerized systems at the IRS are programmed to check tax returns for any red flags. These red flags are indications that the taxpayer has made a mistake or that the individual is trying to illegally lower the tax debt that is owed. The IRS does not have enough resources or agents to look over every single tax return that is filed each year. Learning what causes the system to send up a red flag can help taxpayers avoid an audit.

3) Extensions allow a taxpayer to file a tax return after the deadline, but this will not allow the taxpayer to pay any taxes owed after these taxes are due. For most taxpayers this does not make sense but it is the reality of the IRS. If you can not prepare your tax return fully before the filing deadline then an extension will provide more time for you to file, but you can not ay any taxes owed late or you will be assessed late payment penalties and interest. The penalties and interest can add up very quickly.

4) Ignoring the IRS will just make your situation even worse. This may be a common reaction for those who receive notice of a tax dispute with the IRS but it is the worst mistake that you could make. There is a reason why the IRS is seen as persistent, the agency will not stop or give up. The right move is to try to resolve the dispute, and this will go better if you have an experienced IRS attorney at your side.

5) The IRS will often settle a tax debt for less than the full amount owed, but only for those who know how to ask for this. The IRS intentionally makes this process difficult so that all taxpayers do not take advantage of these programs, but with the right legal representation you can resolve your IRS tax debt for less.

Avoid the misery of dealing with the IRS. Knowing these five tips can help you avoid a tax dispute with the IRS, and if one starts then you should consult a qualified attorney right away.

IRS Tax Controversy: How to Increase Your Chance of Being Audited

Friday, April 18th, 2014

Controversy with the IRS is something to be avoided whenever possible. When the IRS puts a taxpayer in their sights the results are usually predictable. The agency will start piling up penalties and interest, seize assets and property, freeze bank accounts, and even start criminal prosecution against the taxpayer sometimes. The IRS will use every resource and weapon that they have available, sinking in their teeth like a rabid dog and refusing to let go.

If you find that you are in an intimidating tax dispute situation with the IRS don’t worry, there is help available and things that you can do. It is better to avoid this situation in the first place. Below we will examine four of the most common red flags that get the attention of the IRS, and these will increase your odds of being audited by the agency. Avoiding these red flags and common mistakes can keep you away from the watchful eyes of the IRS and prevent you from having your life devastated by a tax dispute.

1) Simple mistakes in math are a good way to cause your tax return to be flagged. When you are adding, subtracting, and multiplying always double check the answers to make sure that you avoid simple math mistakes. These small errors could cause you to be audited and start a nightmare scenario. Check your work very carefully, or hire a professional tax preparer or accountant to prepare your tax return for you.

2) Claiming business deductions that seem excessive. Always claim any legitimate business deductions that you qualify for, but if the numbers seem excessive for the industry that you are in then you can expect the tax return to be flagged by the IRS computer system. If you have excessive business deductions then always keep any documentation just in case your return does get audited. This documentation will be very helpful during any audit or tax dispute. Even if you claim legitimate deductions if these are considered excessive for the industry that you work in then you should realize that you will have a higher chance of the return being audited.

3) Failing to report all of the income that you have made. This is especially true if the income will be reported to the IRS by someone else. It may seem tempting to conceal certain income, especially if you think that the IRS will not find out. This is a big mistake though. The IRS has ways of cross checking and many different methods that can be used to uncover income that is not reported on your tax forms. If you fail to report income that you have earned during the year then you can expect to be audited, and failing to report income to the IRS can carry a criminal charge as well as financial penalties.

4) Claiming a dependent when this person is also claimed by someone else. Since all of the tax returns filed are entered into the IRS computer the dependent being claimed on two different taxes will raise a red flag and start a tax dispute or audit. Once this happens then every taxpayer who claimed the dependent will be looked at more closely. If you plan on claiming a dependent that you are entitled to make sure this dependent will not be claimed by anyone else.

Keeping these helpful audit tips in mind when you prepare your tax return can help you avoid any red flags.  If you do receive notice of a tax dispute with the IRS then do not panic, contact an experienced tax attorney as soon as possible.

Avoid an IRS Dispute Before it Begins: Seven Tips to Avoid IRS Trouble

Monday, February 3rd, 2014

An IRS dispute is something that no taxpayer wants to be involved in, and a letter notifying you of an IRS dispute or audit can be the worst thing in the mailbox. The Law Offices of Nick Nemeth specializes in representing taxpayers who have a tax dispute with the IRS, We will work diligently to ensure that the entire process is as stress free as possible, and get you the most favorable terms that the tax code and laws allow. It is better to head off trouble before it can start, so we are providing practical tips that can help you avoid an IRS tax dispute in the first place.

1) Always proofread and double check your tax return carefully. Look for math mistakes, misspelled words, and other common mistakes that will get the attention of the IRS. If you list your address with the wrong spelling or with two of the house numbers transposed this can cause your return to be flagged for further review. Even forgetting to sign the return could cause you to be audited. Take the time to make sure everything is correct before you file your tax return.

2) If you donate to charity in an excessive amount make sure that these donations are substantiated and documented. The United States tax code encourages charitable contributions but it is expected that your charitable giving is in line with the income that you make. If you honestly donated a considerable amount then you should claim this, but make sure you can back up the claim with proof because your tax return is more likely to be flagged for further scrutiny and a possible audit.

3) Never use a tax preparer that is disreputable or unethical in any way. There are many tax preparation companies and individuals who are willing to break the law so that your tax liability is reduced, but when the preparer is discovered you will end up right in the middle of the mess. Your tax returns could be audited, your deductions could be disallowed, and you could end up owing the tax man a large chunk of money as a result of using a less than reputable preparer for your taxes.

4) Only claim tax credits that you truly qualify for. The IRS allows many different tax credits for taxpayers, but only if the taxpayer actually qualifies for the credit. Before you claim a home buyer credit or list a child care credit make sure that you meet the criteria to qualify.

5) Always report all income that you have, never try to hide earnings or income from the IRS. If you try to hide income from the agency this can bring serious trouble. It may be tempting to fail to report cash payments, tips, and other types of income in the belief that the IRS will not catch you but this should be avoided. If the IRS suspects that you have concealed income the audit process will be especially painful and drawn out.

6) Don’t claim a dependent that someone else can claim. If you do this then you can expect the IRS to give your return more attention and scrutiny.

7) Business losses cause suspicion at the IRS, so never claim any business deductions that are not legitimate or that you ca not back up with proof. This is really true if the business has been operating for more than a year. If you have real business deductions and losses then you should claim these, but be prepared for the extra attention and higher audit risk that this involves.

Facing a Tax Dispute? Don’t Let the IRS Intimidate You

Wednesday, January 22nd, 2014

If you are a taxpayer then the last thing you want to find in your mailbox is a letter from the IRS. This government agency has a well earned reputation, and the IRS uses fear and intimidation to get taxpayers to comply without question regardless of what the circumstances are. The IRS has found that bullying and aggressive intimidation tactics can be highly effective so the agency continues to use these methods and even push the legal boundaries  in many cases.

The IRS maintains their reputation and tries to strike fear in the hearts of taxpayers with the goal of keeping taxpayers honest and preventing tax fraud. If the taxpayer believes that the IRS is all powerful then individuals and businesses are far less likely to try and fudge or fail to report income. The IRS wants taxpayers to to know that this agency has many powers and that they will use these powers against taxpayers without hesitation.

Intimidation is not the only tactic used by the IRS to ensure taxpayer honesty. IRS agents will hound any taxpayer who is unlucky enough to come to the attention of this agency. Most of the time the taxpayer gives in before they are ever visited by an IRS agent, the threatening letters and intimidating threats made over the phone are typically enough to scare a taxpayer into paying any amount claimed without question.

If you receive notice of a tax dispute from the IRS do not let this intimidate you. There are 3 things that you need to know as a taxpayer so that any IRS tax dispute is handled properly and you get the best possible outcome without all of the intimidation and bullying:

1) Having a qualified tax attorney on your side ill help you ensure that your rights are protected and defended. When you have a tax dispute with the IRS then it is crucial that you have a lawyer representing you who has experience dealing with the IRS. This professional will make sure that your legal rights are protected during the tax dispute and will prevent the IRS from trying to intimidate or bully you. The tax attorney will deal with the IRS for you, giving you much needed peace of mind and letting you get back to a normal life once more.

2) Every taxpayer has specific legal rights, and the IRS must acknowledge and respect your rights during any tax controversy. IRS agents will not tell you what your rights are, but a qualified tax attorney will. This government agency will not make your life easy, and they may try to violate your rights if you are not aware of the them. The lawyer that you choose to represent you with the IRS can explain all of your rights and make sure that they are well protected.

3) The IRS does have the power to seize your property, but only after they have followed certain procedures and you have been provided due process. Most taxpayers fear that the government agency will try to seize vehicles, homes, bank account balances, and other property. This is a real possibility if you have a tax dispute with the IRS, but only after due process has been followed. Taxpayers are given plenty of time to come to an agreement and resolve the tax dispute before the IRS before any seizure is ordered. An IRS notice should not cause you to panic, but you should take steps to resolve this issue as soon as possible.

IRS Tax Relief: Six New Year’s Resolutions to Help You Avoid IRS Trouble

Friday, January 10th, 2014

With the New Year holidays coming up you may be hoping for an IRS tax dispute resolution, or that you never have to deal with this agency again in the coming year if you have had past controversy with the IRS. We want to assist you in your goal in staying in the good with the IRS and avoiding any tax disputes.

Listed below are 6 steps  which can help you avoid problems with the IRS, and keep any damage as small as possible if you do find yourself involved in a controversy with this agency:

1) Avoid panicking. No matter what your tax dispute with the IRS you are facing, it is panicking will not help your situation any. If you receive notice that the IRS has a tax dispute against you stay calm and consider your situation. You may start to feel overwhelmed or unsure of what steps you need to take. Consult with a qualified tax attorney as soon as possible.

2) You should never try to take on the IRS without professional legal representation. If you have a dispute with the IRS over your taxes a qualified tax attorney can help you resolve any issues without aggressive collection tactics. The lawyer will ensure that you are treated fairly and that the IRS follows the laws. This will help you get the best possible outcome from the tax dispute. This government agency has many attorneys, you should have a qualified and experienced tax attorney on your side as well.

3) Don’t bury your head in the sand when it comes to IRS communications and problems. The IRS will not leave you alone until any tax dispute is resolved, and when you ignore this agency things will only go down hill and you could end up facing asset seizure, wage garnishments, personal visits from an agent at your job or home, and other aggressive IRS collection methods.

4) If you are a business owner make sure you retain copies of all your business records. Careful record keeping is crucial for any business owner, and you need to make sure that you document all of the business income and earnings for each year. If there is any tax dispute with the IRS then this agency will ask for documentation to verify these factors. If you can not produce the requested records and information then the IRS may disallow the related business expenses.

5)  Always keep documentation for any deductions that you claim on your personal and business tax returns. The IRS is big on documentation, and they are always suspicious if you can not provide it. Any charitable donation deductions, use of your vehicle for business purposes, and any other personal or business deductions should have supporting documentation to back up all of the deductions that you claim.

6) Organization is very important when it comes to your tax forms and documents. Always keep all supporting documentation for tax deductions and other aspects of your tax return completely accessible and very well organized. Spend a couple of hours at the beginning of the year creating a well organized system for filing and storing any tax documents and supporting evidence of tax deductions, making it much easier to quickly locate them if there is an IRS tax dispute.

These 6 key steps can help you avoid any problems with the IRS. The Law Offices of Nick Nemeth is available if you need additional information or an experienced tax attorney who will work with you to resolve any IRS tax dispute.

Five Steps to Take if You’re Stuck in an IRS Dispute

Tuesday, January 7th, 2014

One of the things that most taxpayers are terrified of is to get into a tax dispute with the IRS. Anyone who has ever been in this position understands why the IRS is the most dreaded of the government agencies, and anyone who has never tangled with the IRS is extremely lucky. You do not want to catch the notice of the IRS if you can help it!

The new year is right around the corner, and our law offices wish that no Texas taxpayer would have their lives made miserable by the IRS in the coming year but that is not going to happen. Unfortunately the IRS will target many taxpayers in this state and start a tax dispute with thousands of Texas residents. This can be very traumatic, and if you are involved in an IRS tax dispute or controversy there are 5 top things that you need to remember:

1) Keep panic out of the equation. When you receive a communication from the IRS the first thing that many people do is start to panic, and you need to avoid panic and keep your wits about you. The IRS is a very intimidating agency that no one wants to deal with, whether you are being contacted by mail, by phone, or in person. The IRS relies on fear and intimidation tactics in order to get taxpayers to comply immediately. Remember that there are laws that the IRS MUST follow, and the IRS will not advertise this fact but you do have rights as a taxpayer in the USA.

2) Get all of your records and documentation in order. The IRS insists on documentation if they question any aspect of your tax returns, and you need to have your records in order so that you can document your case to the agency. You should have an experienced tax attorney work with you so that you avoid the most common mistakes and resolve your case in the best possible way.

3) Look at the communication from the IRS closely. After you have successfully pushed the initial panic away look at the letter or notice that you have received from the IRS, and read the entire correspondence carefully. What is the agency asking you to do or what do they want you to provide to them? Make sure you understand what is needed and when you are expected to return it by. Pay close attention to the deadline given by the IRS, if you do not provide the information or documentation required by the deadline this will only make things worse. Before you do anything it is essential that you know what you are supposed to do and when.

4) Never send the IRS anything except for the specific information and documentation that they have requested from you. When you volunteer extra information you may think that you are being honest but you are actually complicating matters. Giving the IRS more than they want will only open up other possible areas of scrutiny for the agency. The qualified tax attorney that you have chosen will explain this further.

5) Always get a qualified and experienced tax lawyer, never try to negotiate or deal with the IRS on your own. Many people feel that they did nothing wrong so there is no reason to involve a legal professional, but this is a huge mistake. The IRS does not always play fair and will not defend your rights as a taxpayer, only a tax attorney will.

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As Seen in USA Today As Seen in the Wall Street Journal