Federal Taxes
Do not wait until you being audited or in trouble with the IRS or Colorado Department of Revenue to contact a Colorado tax attorney. Let an experienced tax lawyer help you to reduce your tax burden now, keep you from overpaying taxes, and position you to realize significant tax gains in the future. The structure of your business or estate plan, the methods of analysis and reporting, and appeals of unfair and burdensome taxes can all be addressed and resolved.
The Internal Revenue Service (IRS) is the governmental agency responsible for the collection of federal taxes and the enforcement of the ever-changing federal tax laws. In Colorado, the state agency responsible for state taxes is the Colorado Department of Revenue. While it is our civic duty to pay taxes, it is also our right to only pay our fair share of taxes and sometimes financial troubles can keep us from doing so. A Colorado tax lawyer can help you with the IRS and the Colorado Department of Revenue. If you have a problem with the IRS, your state taxes will also be affected.
The penalties for tax evasion or fraud can be very serious. Recently in Colorado, a man who owned a company was convicted of failing to pay $4.2 million in federal taxes and was sentenced to 37 months in prison. He also was forced to pay the IRS $2.19 million in restitution. He was convicted on 16 counts of failing to pay taxes and filing false tax returns. Remember that Al Capone was never convicted of any criminal charges, but he was sent to prison for tax evasion.
Tax fraud occurs when an individual or business intentionally avoids paying federal, state, or local taxes through illegal means. This can include overstating deductions or declaring less than actual income, gains, or profits. Tax evasion; is a federal crime punishable by fines, prison time, and asset forfeiture. Tax avoidance, or the minimizing of your tax burden and maximizing of your tax benefits, is perfectly legal.
Tax codes are complicated and the IRS is often inflexible and difficult to work with. An experienced tax attorney understands the inner workings of the IRS and the complexities and nuances of the law. I can help represent your interests. If you are experiencing problems with back-taxes or an audit, time is of the essence in getting a tax attorney involved. The IRS can issue wage garnishments, liens or seizure of property, and even request jail time for tax evasion. Fees, penalties and interest on amounts owed to the IRS accumulate quickly. Bank accounts can be frozen, causing you headaches you don't need. The IRS can also start a criminal tax investigation even if you don't believe you've done anything illegal. A tax attorney can negotiate a settlement with the IRS on your behalf, often reducing the amount owed. Trying to work things out on your own with the IRS can be daunting and ineffective.
While it may seem expensive to hire at tax attorney, in the long run it could save you money. No one wants to pay more than their fair share of taxes, and a tax attorney can make sure you don't, especially if you are a business owner setting up an estate or receiving a large financial payment. Hiring a tax attorney is essential if you are already in trouble with the IRS, but a tax attorney can also be invaluable towards keeping you out of trouble, and reducing your tax burden.
The real work of a tax attorney is before and after "tax season." Let your accountants and tax preparers work on your tax returns. But use an attorney to plan ahead and then take steps to remedy or defend any issues or problems. For example, estate and business planning uses tax considerations as a primary issue in developing and implementing those plans.
Some examples of tax attorney federal tax work include:- Analysis of and implementation of Estate and Business Plans
- 1031 tax free exchanges
- Audit preparation and representation
- Offers in Compromise, Installments & Deferred Payment Agreements
- Jeopardy assessments (seizures), wrongful disclosure & levy claims
- Federal Tax Liens on local property and wages/income
- Innocent Spouse protection
- Responding to "Opportunity Letter" (re offshore accounts)
- Tax evasion criminal defense
- Due diligence Attorneys' Opinion Letters (mergers, acquisitions, reorganizations, etc.)
- Litigation in Federal District Court, Federal Claims Court, or US Tax Court
Many people find their tax attorney just as important to their financial well-being as a their financial advisor or tax return preparer. To find a reputable tax attorney, you could ask your accountant or tax professional for a referral. The Colorado Bar Association or your county's bar association can also provide a find-a-lawyer service, where you can get a list of member attorneys practicing tax law in your area. And, of course, you can call me.
Useful Links
- Library-Tax (No articles in there yet. Give me some time! This site has only been up since March 2010. I do and will have a lot to say.)
- Internal Revenue Service
- IRS Form 4506 Request copies of tax returns
- IRS Form 2848 Power of Attorney and Declaration of Representative
- IRS Form 56 Notice Concerning Fiduciary Relationship (fiduciary acting as taxpayer)
- IRS Form 8821 Tax Information Authorization (Authorizes an individual or organization to receive or inspect your confidential tax return information but do not authorizing the individual or organization to represent you before the IRS.)
- Colorado Department of Revenue
- Colorado DR 0145- Tax Power of Attorney
- Colorado DR 5714 - Request for Copy of Tax Returns
- TaxSites.com
- U.S. Treasury Department