Navigating tax disputes can be a daunting task, but with our seasoned team of experts by your side, you can face any challenge with confidence. At Dayes Law Firm, we have dedicated tax attorneys that will resolve tax controversies swiftly and effectively, ensuring that your rights are protected and your financial well-being secured.
Tax controversy involves a dispute between a taxpayer and the IRS where there is a discrepancy on how much you owe in taxes. Such disagreements can arise from errors in tax returns, unreported income, improper deductions, or allegations of tax fraud. Reach out to a Phoenix tax controversy lawyer if you or your business is facing an audit or penalties for noncompliance.
Tax controversies can take many forms and none of them should be taken lightly. It can begin with a simple letter from the IRS questioning something about a tax return, or the IRS could pursue a full-scale audit or court proceeding from the start. There can be significant consequences for failing to respond quickly and comply.
One of the most common forms of tax controversy is an IRS audit. Financial records are thoroughly reviewed in order to determine whether there was an error in filing tax returns. The IRS could then assess additional taxes, interest, and penalties if discrepancies are found. An IRS audit can happen as a result of red flags in tax returns. Excessive deductions, unreported income, or inconsistent filings are a few examples of what could trigger an audit.
Tax fraud and tax evasion are more serious. Tax fraud implies that a person or business was intentionally deceptive in avoid paying taxes, such as underreporting income or deducting too much. On the other hand, tax evasion could involve hiding assets or using numerous unreported offshore accounts. Either one can result in financial penalties and even criminal charges.
Another way tax controversies can come about is by failing to withhold payroll taxes. Employers must withhold taxes from their employees’ wages like income tax, Social Security, and Medicare, and then remit them to the IRS regularly. When an employer fails to remit these taxes, they can face the Trust Fund Recovery Penalty (TFRP), which holds a designated person in the company personally liable for unpaid employment taxes. It is critical to seek a Phoenix attorney when facing tax controversies since conflicts with the IRS can escalate.
Taxpayers who are facing tax issues have the right to due process. They have the right to challenge the IRS’s claims and to appeal decisions they believe are wrong. The Collection Due Process (CDP) hearing is one option where you can present your case and propose an alternative collection solution. A CDP offers a chance to resolve the issue without litigation and pauses collection attempts temporarily.
The case may go to Tax Court if a resolution cannot be reached out of court. This is a Federal Court with strict procedures. A Phoenix attorney can help an individual with a tax controversy through all court proceedings, including pleadings, discovery, settlement negotiations, and trial.
Don’t let tax disputes weigh you down. Partner with Dayes Law Firm today and reclaim control over your finances. Contact us to schedule a consultation with a Phoenix tax controversy lawyer and take the first step toward a brighter, worry-free future!
Our team comprises experienced tax professionals who have successfully resolved countless cases, from audits to appeals and beyond. We have handled a wide range of tax issues, from simple misfilings to complex fraud investigations. This has given us the experience necessary to take on challenging cases.
Time is of the essence in tax matters. We work diligently to expedite the resolution process without compromising on quality, saving you time, money, and stress. We help to ensure deadlines are met and all responses are filed promptly.
We understand that every situation is unique. That’s why we tailor our strategies to fit your specific needs, providing personalized guidance every step of the way. We adapt our legal strategies to suit a client’s circumstances.
We believe in keeping you informed and empowered throughout the process. You’ll receive clear, jargon-free explanations of your options and our recommended strategies.
Whether you’re facing an IRS audit, tax dispute, or need assistance with compliance, our Phoenix lawyers offer a full suite of services to address all your tax controversy needs. Move forward with confidence and peace of mind with Dayes Law Firm.
An IRS audit is a review of a taxpayer’s financial information and records to ensure compliance with tax laws and regulations. Audits can be conducted either by mail (correspondence audit) or in person (field audit).
The IRS uses various methods to select taxpayers for audits, including computerized screening based on discrepancies or anomalies in tax returns, random selection, and referrals from other sources, such as third-party reporting.
There are three main types of IRS audits: correspondence audits, in-person audits (field audits), and office audits. Correspondence audits are conducted by mail, while field and office audits involve meetings with IRS representatives.
If you receive a notice of an IRS audit, it’s essential to respond promptly and follow the instructions provided. Failure to respond to an audit notice can result in adverse consequences, including penalties and additional taxes.
Taxpayers should gather all relevant documentation and records to support the items reported on their tax returns, including income statements, receipts, bank statements, investment records, and other financial documents.
Common triggers for IRS audits include discrepancies or inconsistencies in tax returns, high-income levels, claiming deductions or credits that are unusually high or out of the ordinary, and involvement in certain industries or professions that are more prone to tax evasion.
During an IRS audit, the IRS will review the taxpayer’s financial records and documentation to verify the accuracy and completeness of the information reported on their tax return. The taxpayer may be asked to provide additional information or clarification as needed.
Taxpayers have certain rights during an IRS audit, including the right to representation, the right to appeal any proposed adjustments, the right to confidentiality, and the right to a fair and impartial process.
The potential outcomes of an IRS audit include no changes to the tax return, adjustments to the tax liability (either increases or decreases), penalties for underpayment or non-compliance, and, in rare cases, criminal prosecution for tax evasion.
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