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No taxpayer ever wants to receive notice regarding a deficiency from the IRS. Unfortunately in any particular tax year thousands, if not tens of thousands, of taxpayers will receive a notice of this type. While every situation is different and comes with its own set of conditions and circumstances, taxpayers that engage in the process early and cooperate fully typically end up with more favorable resolutions that include lower fines and penalties.

However, taxpayer who attempt to conceal or otherwise hide their past mistakes or errors typically end up facing significantly more severe consequences. In some circumstances the taxpayers subsequent actions may even compound the violation or create the appearance that the individual was engaging in tax evasion or tax fraud. IRS and Department of Justice (DOJ) agents will pursue individuals believed to be committing tax fraud aggressively.

Working with an experienced tax attorney from the NewPoint Law Group, LLP, can help ensure that you avoid the worst-case scenario. Our dedicated tax lawyers advocate aggressively and strategically for our clients.

Taxpayers Have A Duty to File and Pay Tax in a Timely Manner

The U.S. Tax Code sets forth an obligation that requires most U.S. citizens and legal permanent residents to file an income tax return each year. Under the filing guidelines for the 2014 tax year, a sole filing taxpayer under age 65 would be required to file after earning $10,150 in W-2 income. Likewise, a single taxpayer that make more than $400 in 1099 income must also file an income tax return or request an extension by the April 15th tax deadline.

Aside from the obligation to file one’s income taxes, there is also a duty to remit payment for all taxes due and owing. Taxpayers must submit payment for all taxes due and owing by the April 15 tax filing deadline. Even if taxpayer requests an extension of time to file via IRS form 4868, such a request does not also constitute an extension on the amount of time to pay. A taxpayer must submit an estimated payment for his or her taxes by the original filing deadline. Taxpayers who fail to remit sufficient estimated tax payment when filing for a filing extension are likely to face additional fines and penalties.

Offshore Account and Asset Reporting Obligations Under FBAR and FATCA

While at one time during the 1950s, 1960s, and 1970s secret offshore accounts may have been the way people arranged their financial affairs, such an approach is highly inadvisable in today’s world. The United States’ global banking law, FATCA, has forced taxpayers and foreign financial institutions alike to turn over vast amounts of information to the United States government. The IRS and Department of Justice then use this international account and tax information to pursue noncompliant banks and taxpayers.

Under both FATCA and FBAR, American taxpayers have an obligation to disclose the existence of certain foreign accounts and assets when the taxpayer’s aggregate foreign accounts and assets exceed certain levels. For FBAR, taxpayers with foreign assets greater than $10,000 must make a yearly disclosure via FINCEN Form 114. For FATCA, the amount of assets that gives rise to a disclosure obligation is less predictable because one’s tax filing status and whether he or she is living in the United States or abroad are taken into consideration. Generally speaking, a taxpayer that lives aboard, is married, and files jointly with his or her spouse can hold the greatest amount of assets before he or she is required to make a disclosure. In contrast, a single filer living in the United States can hold the least amount of assets before he or she needs to make a FATCA disclosure.

Tax Audit Support When You Need It Most

Small business owners are particularly likely to face an IRS tax audit due to IRS perceptions about small business owners and their rate of tax compliance. If your business deals exclusively or heavily in cash, your risk of facing an audit is increased further due to the IRS’ belief that such businesses are more likely to engage in tax evasion or tax fraud. Furthermore, a payroll tax audit can have devastating impacts on not only the business’ bottom-line, but also the finances of the business owner and the party responsible for handling the taxes. We can defend you and your business from tax audits and payroll tax problem allegations.

Rely on Our Tax Attorneys to Handle the IRS and Tax Problems in Sacramento

If you are facing a tax audit or other tax problems due to an IRS letter or inquiry, the experienced and dedicated attorneys of NewPoint Law Group, LLP, can fight for you. To schedule a confidential tax consultation, call our firm at 800-358-0305 today or contact us online.

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Your business deserves a legal partner who understands your current needs and is equipped to evolve with you. NewPoint Law Group is ready to be that partner, ensuring that your legal foundation is as robust and forward-thinking at every milestone as your business itself.

Create, Grow, and Protect Your Business with NewPoint Law Group

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