Author: The Law Offices of Nick Nemeth

A Look at the Initiation of IRS Tax Investigations

Initiation of IRS Tax Investigations

There are many reasons why you might end up facing an Internal Revenue Service (IRS) tax investigation. Many taxpayers don’t even know they’re under investigation regarding alleged tax evasion or tax fraud until the IRS comes looking for them. There are many different kinds of tax fraud that all attract different penalties, and without proper counsel, it is easy for issues to spiral out of control. If an IRS agent comes across incriminating information during the civil audit, it can lead to an indictment or jail time in certain cases. When you understand how the IRS initiates its tax investigations,

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3 Benefits of Settling IRS Tax Debts

benefits of settling IRS tax debts

There is every reason to expect bad news from the IRS once you are late with your payments. While this may be true, the IRS offers defaulting taxpayers many options to settle their tax debts to avoid penalties, interest, and other undesirable consequences. The options, such as an offer in compromise and a penalty abatement, present many benefits to taxpayers. Let’s look at some of the benefits of settling IRS tax debts. 1. Avoid Penalties and Interest The main benefit of settling IRS tax debts is avoiding additional interest charges and penalties. The IRS charges a 0.5% failure to pay

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Best Practices for Multistate Payroll Tax Compliance

Best Practices for Multistate Payroll Tax Compliance

Work-from-home has allowed more employers to hire employees across state lines. Although this development provides employers with limitless options, it also leads to the ordeal of having to withhold income tax for multiple states. The complexity of multistate payroll tax compliance arises from the need to navigate a different set of rules for each employee who lives in one state and works in another, or that executes tasks for you in more than one state. Complying with IRS payroll tax has now become one of the biggest problems for payroll professionals, making it vital for employers to stay on top

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How to Appeal a Rejected IRS Offer in Compromise

How to Appeal a Rejected IRS Offer

IRS Offer in Compromise (OIC) is one of the simplest ways for taxpayers to settle their outstanding tax liabilities, but that doesn’t mean everyone can qualify for it. In many cases, and due to a myriad of reasons, requests for an IRS Offer in Compromise are rejected. The IRS may offer to adjust the amount in the request to settle the outstanding taxes but that can still be too much for the taxpayer to afford. In such cases, the taxpayer has the right to administratively appeal the rejection of their OIC request to the IRS Office of Appeals. In this

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All You Need to Know About a Notice or Letter from the IRS

IRS notices and letters

Receiving any communication from the IRS can easily result in sleepless nights. There are numerous letters and notices that may come to your mailbox and they often bring anxiety and stress with them. On the one hand, there is a fear that you will soon be saying goodbye to your hard-earned money; on the other hand, the IRS could take more than just your savings account. But, as they say, with the right approach no mountain is too high to climb. Moreover, if you have received an IRS notice or letter then the last thing you should do is ignore

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Steps to Appeal Your IRS Audit

IRS Audit

The very mention of the term ‘IRS audit’ is enough to worry even the most diligent taxpayer. Whether the audit is to investigate back taxes, penalties, interest, or sanctions it can result in perpetual visits to the IRS office or even visits from IRS agents to taxpayers on the receiving end. That, however, is just the beginning of the worries. If all of the findings of the audit are against the taxpayer’s interest, it can result in serious financial consequences. That is when taxpayers can turn to the Office of Appeals. How does the Office of Appeals Help? Even though

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Notable Dos and Don’ts When Applying for IRS Penalty Abatement

IRS penalties can be a nightmare for taxpayers. Making the scenario worse is the fact that most penalized taxpayers either do not request relief or have their abatement request turned down because they failed to comply with the IRS’s filing guidelines. That is the reason why it is important for taxpayers to rope in an experienced IRS tax lawyer. With proven experience in handling IRS penalty abatement cases your tax attorney can help you earn a determination in your favor. In this article we cover some notable dos and don’ts when applying for IRS penalty abatement. Read on. Dos Utilize

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How Are Tax Returns Processed by the IRS

Tax Returns

The tax returns filed with the Internal Revenue Service (IRS) need to undergo quite an extensive review process before they are finally accepted. While it is mandatory for each taxpayer to regularly file tax returns, not everyone is aware of what exactly happens once they submit their file. Keep reading to know how the IRS uses an amazing blend of man and machine to process tax returns. Error Resolution Service Firstly, the filed return goes through an error resolution service, which is designed to point out potential errors. If it finds an error, the return file is reviewed by an

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How to Spot and Avoid Tax Scams

Beware of tax scams

The Internal Revenue Service (IRS) is very strict when it comes to payment of taxes. In trying to fulfill your obligations as a taxpayer, it remains important to keep an eye out for fraudsters that waylay taxpayers with all sorts of schemes including threatening an IRS tax investigation. The IRS makes a concerted effort to warn taxpayers about the existence and form of such schemes. This blog looks at how to spot tax scams and avoid them. Email Scams The Internal Revenue Service does not initiate any contact with taxpayers through emails if they need any personal or financial information.

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Federal Tax Liens Vs Mortgage: Which One Takes Priority?

IRS revised retirement plans

When it comes to managing different tax-related issues such as paying dues, filing returns, and handling liens, levies, and mortgages, it is extremely important to set the right priorities to avoid IRS tax problems. Two of such issues that demand immediate attention are tax liens and mortgages. A tax lien refers to the government’s right to claim your property due to the failure to pay your taxes, while a mortgage is a legal agreement through which you take a loan from a lender while putting up your property’s title as security. In this blog, we take a look at Federal

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