Different Types Of IRS Problems

The Internal Revenue Service is a government agency that most people do not want to know too intimately. Taxpayers file their returns in a timely manner to avoid a garnishment, levy, or criminal charges. These are just a few of the IRS problems that can ruin the future of individuals who do not adhere to tax filing regulations.

If a person commits tax fraud or engages in tax evasion, criminal charges, prosecution, and a jail sentence may be the unfortunate result. It is illegal to under-report earnings, claim too many withholding deductions, or fail to file an annual tax return. The Internal Revenue Service has a team of criminal investigators who contact and interview offenders. Those who find themselves on the other end of this phone call should not answer any questions until they retain a tax attorney.

Daring individuals attempt to hide from the government by never filing annual tax returns. This action is not only illegal, it will most likely end with the offenders being caught. The government has instituted a voluntary disclosure provision allowing these individuals to make things right. Eligibility criteria and stipulations regularly change, so it is recommended that an offender contact a CPA and in some cases, a tax attorney.

Taxpayers who unknowingly stumble into a tax issue can be held just as responsible as those who intentionally create a problem. An individual who files a joint return with a spouse who under-reports income may be held accountable for the issue. This accountability does not end when the two become divorced or if the spouse dies. The government has a provision for innocent spouse relief that these individuals, in conjunction with their tax attorneys, may want to consider.

The government uses techniques like placing levies on securities, bank accounts, and real estate to collect money owed. It may also require that an offender’s employer garnish the wages of the individual. Another collection method is a lien, which prevents an asset from being transferred or sold until tax debts are satisfied. People who find themselves subject to any of these should immediately seek guidance from a CPA.

IRS problems will likely result from commission or tax fraud, tax evasion, or joint return issues. The Internal Revenue Service can collect tax debts via liens, levies, and wage garnishments. In extreme cases, it may file criminal charges against an offender, who can be sent to jail if convicted. To avoid all issues, a CPA should file the tax return and a tax attorney should be contacted if any problems arise.

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