IRS Letters And Notices
You should respond to all letters and notices if you want to protect your rights or to initiate an action. If the action you decide to take is no action, that is ok too. The further in the collection process you wait to make a correction, the harder and more time consuming it will be. People have paid me thousands of dollars to correct actions that would have been very simple, and less costly, if done the moment the IRS first contacted them. This tax relief guide will give you better information about how to respond. Each letter can be found on the IRS website. Just Google the letter or form number and select the sites you want explanations from, including the link to the IRS website.
Please read my descriptions for each letter. Even if you didn’t get that letter, the descriptions contain a lot of useful information to help you understand the IRS.
Tax Evasion – Not The Right Choice, Settle Your Tax Debts!
Do you think you have evaded filing and paying taxes? It’s easy to feel that way if you are feeling guilty. If the IRS hasn’t assigned anyone from the Criminal Investigation Division (CID) to your account then you shouldn’t feel as if you have done something wrong. In my many years of practicing public accounting, very few people are sent to the CID, and most of my clients have not filed and paid their income taxes. It’s how you handle the situation that matters. Call us to help you decide the most appropriate course of action. Your best defense against tax evasion charges is not to allow yourself to be charged in the first place! We can save you expensive criminal attorney fees!
This is your first bill for taxes due. A nice simple request for payment. The IRS feels that you still did not pay enough to cover the liability plus interest and penalties. This letter will go to great lengths to explain the interest and penalties, and often less about why you owe money.
Tax Avoidance U.S. Tax Evasion
This is a change based on the result of an IRS audit examination. You don’t even have to be aware of it! The IRS can and does conduct audits without your knowledge. If they think everything is O.K. then you probably will never know it happened. If not you will get a letter. You should respond with your proof for any items you want to claim are justified as staying the way you reported them. Or you can just agree to their changes. Often the reasons for the change are missing. How nice. Pull your third party payer information and see why they have different information than you. If you can’t get it in time, call and find out why. You may have to make a few calls. Hang in there.
Tax avoidance refers to the legal methods used to not pay, or avoid paying, taxes. Not all income earners pay taxes. Depending on losses and tax deductions, you may legally reduce your taxes down to zero. Tax evasion is finding a way to justify not paying your taxes, even thought it’s clearly against the Internal Revenue Codes and Rulings. This is illegal, and if the IRS proves that you unlawfully evaded filing and/or paying taxes, then you could go to jail. You may want to read news articles discussing tax evasion and tax fraud, and see what the latest happenings are. IRS Federal Tax Evasion is a very serious matter.
Employment Tax Evasion
These schemes can vary. The IRS considers the following: Pyramiding: Employers withhold from employers, but then use it for something other than paying the IRS. Employee Leasing: Contracting with another business to handle all employment issues. Then the outside business fails to pay the employment taxes and dissolves. Paying Salaries in Cash: Paying in cash that was never reported. Not taking out employment taxes when the cash is paid. Filing false payroll tax reports or not filing them at all is a common practice to evade employment taxes.
Some Famous or Notable Tax Evasion Cases, Then & Now:
Al Capone Wesley Snipes Anthony Carlos Lim Dolce & Gabbana Val Kilmer MC Hammer Forest Whitaker Floyd Mayweather Rod Blagojevich UBS Clients Marc Bruce John Pham Nicolas Cage Michelle Bielaski
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