Tax Dispute Resolution Attorney
Did you know that Illinoisans pay the highest state and local tax rates in the nation? Individuals’ household income taxes now exceeds 15 percent. This is almost 39 percent more than the nation’s annual average.
Are you unable to pay your tax bill? Do you disagree with the amount due? If so, you need to contact a tax lawyer.
Keep reading to learn how a Chicago tax lawyer can help you resolve this dispute.
IRS Tax Dispute Process
Americans have the right to disagree with the Department of Revenue (DOR). This can include disputing the amount of tax assessed or a refund denial. Individuals may attend a DOR hearing with an authorized agent such as an attorney.
Your attorney will guide you through the process and represent your best interest. The first step is to file a petition to waive penalties and interest charges with the appeals board.
You must show reasonable cause for not being able to afford to pay the debt. Another option is to offer an alternative or compromise to meet the liability. These are the only two reasons the Board of Appeals will reexamine final tax liability.
If the Illinois Independent Tax Tribunal sent you a notice, file a petition by their deadline. This must occur if your tax liability is over $15,000, excluding interest and penalties. The other mandate is if your penalties and interest exceed $15,000, even without a tax debt.
For income tax protests, submit Form EAR-14, Format for Filing a Protest for Income Tax. Other types of tax disputes need a different form. File Form AH-4, Protest and Request for Administrative Hearing with the Illinois Department of Revenue.
The IRS Tax Dispute Office
The IRS Independent Office of Appeals handles tax disputes without litigation. Their goal is to reach an impartial and fair decision for the government and you. They also offer mediation services.
You still have the right to make a court appeal if you disagree with the outcome. It’s important to understand that this proceeding is often held ex parte. This means that discussions occur between an Appeal employee and other IRS staff.
You nor your representative may participate in this interaction. Are you comfortable letting your tax debt resolution be decided without your involvement?
What Benefits Does a Tax Lawyer Offer?
For this reason, many people choose to work with a tax attorney. They’re finance professionals with a specialization in tax liability policies. This includes rules governing the following.
- Estate transfer taxes
- Income tax
- Physical and intellectual property acquisition taxes
- Taxes on business transactions
Tax lawyers may work in law firms that offer tax services. Individuals, businesses, nonprofits, or corporations may hire them independently on retainer. Some tax attorneys act as consultants while others litigate cases in the courtroom.
These professionals understand the complex details of tax laws. They continuously research new revisions, deletions, and additions related to compliance. This allows them to provide accurate advice to their clients.
Having an advocate with this expertise is vital to achieving the best outcome. You can feel confident that you’re well represented at audits, hearings, and appeals.
Reasons to Hire a Business Tax Lawyer
It’s wise for all businesses to hire a tax attorney. Understand that tax accountants and tax lawyers aren’t the same.
Tax accountants focus on managing your financial records. They also prepare your tax returns and ensure that quarterly payments are made on time.
Tax attorneys’ expertise lies in developing strategies to reduce your tax bill. They’ll provide advice on structuring your assets for the best tax advantage.
They tell you about legal credits, exemptions, and tax deductions you’re eligible for. Companies also hire tax lawyers to help with property acquisitions and estate planning.
Tax attorneys will answer tax questions related to running your business. They’re always current on the latest tax laws that apply to you.
If there’s a conflict, they’ll represent and advocate for your best interest. This includes negotiating with the Internal Revenue Service (IRS) and other tax authorities.
Having the attorney audit your financial records will minimize your tax debt. They analyze your bank statements, payroll records, receipts, invoices, and tax documents.
Their services include drafting contracts, letters, and memoranda. You may also have them make presentations and take part in meetings and conference calls. This provides you with the legal advice needed for commercial transactions.
Are you considering making changes to employment or payroll policies? Are there new financial options you’re considering? Is there new legislation that impacts your company?
Your tax attorney is ready to help you with these dynamic situations. They’ll provide sound, expert advice so you feel confident in your decisions.
Unique Issues for Corporations and Nonprofit Organizations
Business tax lawyers are vital partners when forming a nonprofit organization or corporation. You must adhere to numerous rules and regulations to comply with tax laws. This also applies to joint ventures, corporate restructuring, and bankruptcy.
Each region and county defines its tax laws regarding bankruptcy and corporate development. If you knowingly or unknowingly violate these laws, you risk tax evasion suits. This could cause your shares to drop and even cripple your business.
You can reduce your risk and stress by hiring a tax attorney. Let these experts represent you in property tax appeals tax disputes, and tax audits. Have them set up trusts and investments to ensure you’ve followed the laws and have the best outcome.
What Happens If Tax Problems Arise?
There’s frequent news about changes to the tax laws and exemptions. No one wants to get sued for tax fraud or evasion related to laws they didn’t know existed. Your tax attorney helps ensure that you’re always following the law.
Their job is to review, read, and analyze changing federal tax laws and codes. It’s their professional duty to maintain this level of expertise for all clients.
If you face tax issues, they’ll represent you and negotiate on your behalf. The IRS checks your assets and income to determine your “reasonable collection potential.” Your attorney then works with the IRS or relevant tax authority to reach a compromise.
Options for Tax Resolution
If you owe tax debt, you have different options to resolve the issue. First, make sure that you file your tax return. It’s optimal if that was taken care of by the due date.
Next, speak with an experienced tax lawyer. They may recommend that you file bankruptcy to discharge your debt in some cases.
Filing Chapter 13 bankruptcy, in some cases, can help you avoid foreclosure on your home. This action can resolve your back tax debt as well. You may also be able to keep other non-exempt property.
Chapter 13 may stop interest from accruing on local, state, for federal tax debt in Illinois. It can also help you repay mortgage and car back payments. Remember, though, that bankruptcy can’t erase all tax debts.
Yet, you still have other options. Your attorney can help you communicate with the Illinois DOR and the IRS. The goal is to make a plan to repay your debt based on your reasonable collection potential.
This may involve installment payments to the IRS. Make sure that you keep other expenses current during this time. This helps prevent you from magnifying your financial issues.
Your attorney may advise you to apply for an Offer in Compromise. This means that the IRS accepts payment of a lump sum amount.
The agreed-upon payout is less than the total amount owed. Thus, your debt is paid, and you can make a fresh start. Your attorney may be able to get the accrued penalties reduced as well.
Are You Looking for a Tax Debt Lawyer? Call Us at 312-588-3330
Do you have tax liabilities that you’re struggling to pay? Lorraine M. Greenberg & Associates has an expert tax lawyer ready to help you. Ms. Greenberg has served the Chicago area since 1981.
Our firm works with individuals and small businesses working to resolve financial problems. We promise to give you the personal attention and service you desire at a reasonable price. You’ll receive expert, honest advice and quality legal services.
We keep clients updated and provide explanations for all recommended actions. You’ll get the best tax problems and bankruptcy solutions. Schedule a free consultation today to find answers.