IRS tax issues and controversy overview
  • September 18, 2024
  • admin
  • 0

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 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 start piling up penalties and interest, garnish earnings and paychecks, seize property and freeze accounts, and even take your home or start criminal prosecution against the taxpayer sometimes. The IRS will use every resource and weapon that they have available, until they recover the tax debt. Even though consulting our experienced Fort Worth tax attorneys is crucial for legal guidance, we discuss some facts to avoid IRS trouble, things that will get you into trouble, and reasons for optimism for any IRS tax controversy. 

Five Facts to Help You Avoid IRS Trouble

As a law firm with experienced IRS attorneys in Fort Worth, Texas, we see the devastation that the federal tax agency 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 consult us as soon as possible. The best way to avoid being intimidated and bullied by the IRS is to avoid a tax dispute entirely with guidance from an IRS tax lawyer in Fort Worth, and there are five facts that can help you do this.

1) The Complicated Tax Code

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 cannot keep up unless they are continuously educating themselves on these changes. An experienced IRS tax attorney in Fort Worth, Texas, will be aware of the changes and stay on top of the tax code each year.

2) Computerized systems at the IRS identify 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) The reality of tax extensions 

Tax 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 cannot pay 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 by your side.

5) The truth about Offer in Compromise

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 by a reputable Fort Worth IRS lawyer, you can resolve your IRS tax debt for less.

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

Things that Will Increase Your Chance of Being Audited

In this section, 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

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 entries 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 excessive deductions

Always claim any legitimate business deductions that you qualify for. 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. Always keep documentation for excessive business deductions, just in case your return does get audited. The 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 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 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, 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, do not panic, contact our experienced tax attorneys in Fort Worth, Texas, as soon as possible.

Three Reasons for Optimism

No one volunteers to be part of a tax controversy with the IRS. 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. 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 our qualified IRS tax attorneys in Fort Worth, Texas, as soon as you realize there is a tax dispute. The following are three reasons for optimism when dealing with the IRS over a tax dispute:

1) An experienced IRS attorney will help you deal with this agency

Our IRS tax attorneys in Fort Worth, Texas, help taxpayers deal with the IRS so that their lives are less stressful. As soon as the IRS determines that there is a tax dispute, the harassment and stress starts. You will start to receive threatening letters, phone calls, and even visits from IRS agents at your home and place of employment. Who wouldn’t feel intimidated in this situation? When you have our experienced IRS tax lawyers in Fort Worth, Texas, on your side, then you can negotiate with the IRS with legal knowledge. Your attorney can negotiate so that the agency stops contacting you, giving you some relief from the stress.

2) A qualified attorney can make the IRS follow all the rules and regulations

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 our 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 consulting our tax attorneys in Fort Worth, Texas, who understand the tax code and the laws.

3) 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 our experienced IRS attorney, this is a possibility, though. After assessing your situation, our IRS tax attorneys will check whether this option is suitable for you. They may be able to negotiate this option for you, reduce your tax debt, and show you how to avoid future tax issues in the first place.

Seek Guidance on IRS Tax Controversies 

For taxpayers in Fort Worth experiencing any kind of IRS tax controversy, consulting an IRS attorney in Texas is crucial. Consult a skilled IRS tax attorney at the Law Offices of Nick Nemeth for help with IRS tax problems such as unfiled tax returns. Our IRS lawyers provide resolutions tailored to your specific needs and financial situation. To schedule an appointment, call us at (817) 623-5399. You can also fill out our contact form, and we will get back to you shortly.

Please follow and like us:

What Our Clients Have to Say

Brent VahleBrent Vahle
19:13 02 May 24
I called to see if they could help reduce some penalties and fees. The person I spoke with told me it might be counterproductive for them to take my case since their feels would likely equal the amount of penalty/interest abatement. I decided to pass on moving forward but was so happy to hear a legal team, or any business for that matter, who has that much integrity. I feel most others would likely try to take my money anyway. I hope I never have to go through this again, but if I do, I will definitely use the Law Offices of Nick Nemeth!
Jason WinkleJason Winkle
18:44 02 May 24
Jaime Flores was very friendly, professional, and knowledgeable. She gave me some very valuable information which helped guide me with a plan of action. The free consultation is very much appreciated.
Matthew SwigartMatthew Swigart
12:14 02 May 24
Great attorney who was able to provide quick and useful advice. Although my situation did not warrant their services, they still took the time to discuss solutions I could explore. I highly recommend visiting this office!
Tony PantojaTony Pantoja
12:57 09 Apr 24
Very professional and very knowledgeable, Jamie Flores was very straight forward and professional, a firm that doesn’t just take your money, Thanks
Carla AtwalCarla Atwal
10:52 02 Apr 24
Nick was wonderful in guiding me with direction on some tax questions I had. He was concise, and to the point, and was happy to provide general info to me at no charge. I truly appreciate him and would highly recommend him.
Miguel AlvaradoMiguel Alvarado
15:56 25 Mar 24
By far the best attorneys I have ever worked with. They’re are very helpful and supportive from day one. They went above and beyond to make sure all my documents were submitted on time and gave updates as soon as they received them. I cannot name a single flaw in their work. Their team of assistants are very professional and seem to all be on the same page. I’ve made multiple phone calls and sent a ton of emails to their staff and they were able to help me all through the course of the case. I cannot express my gratitude enough for how excellent they handled my case.
Lucy FoyLucy Foy
06:55 19 Jan 24
My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.
Bradley RunyonBradley Runyon
20:17 13 Jan 24
I received a tax bill in the mail from the IRS last year in 2023. The fees and penalties I owed were something I myself could not afford. I reached out to Nick Nemeth's firm and received the best experience you could imagine. The team was professional, educational, and fast. If you have a tax issue with the IRS using another firm other than Nick Nemeth's would be an error in judgment. I would recommend their services above others.
Sue HulsemanSue Hulseman
19:55 11 Jan 24
Working with Nick Nemeth and his team to resolve my debt with the IRS was the best decision I could have made. I felt such relief knowing I didn’t have to deal with the IRS myself. They did a wonderful job and were responsive to my questions and kept me abreast of my case. My outcome was exactly what I was hoping for. I strongly recommend using them if you have an issue to resolve with the IRS.
R GR G
20:53 21 Dec 23
I had an incompetent tax preparer, who also ignored several notices from the IRS, which in the end resulted in a lien on my property. I did not know what to do and an attorney friend recommended that I contact the Nick Nemeth Law Offices. I met with Jamie Flores and Ivan Nalbantov in December 2021 for a free consultation, and right away was impressed by their thorough examination of my paperwork and extensive knowledge of IRS tax laws. I felt not pressured and appreciated their advice and in the end decided that I would pursue resolving the issue by myself. I paid the IRS Civil Penalty and, as recommended also submitted a letter to the IRS requesting a refund and explaining what happened. I am glad to report that my persistence finally paid off. My case took two years to resolve and I finally received a full abatement/refund check from the IRS in December 2023. I could not have done this without the straightforward recommendation of Jamie and Ivan; and I highly recommend the Nick Nemeth Law Offices to anyone needing help with the IRS.
Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
M WM W
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
js_loader
Quick Inquiry

    captcha

    Enter the text you see above