How to Pay Taxes on Unsourceable Income When you collect your paycheck, you know that…
IRS Announces It Will Pay More Visits to High-Income Taxpayers
It’s common knowledge that high-income earners and business owners often find ways to minimize or avoid their tax liability. They can do it legally by hiring accountants and other tax professionals to find loopholes in the tax code to exploit, such as by moving money to claim certain tax credits or exemptions. Others do it illegally by lying about their income or by using illegal strategies to hide or funnel money.
Now the IRS is announcing that it will crack down on these people as part of its ongoing efforts to ensure greater tax compliance and fairness. The IRS said it will increase visits to high-income taxpayers who, specifically, have not filed their tax returns in a timely manner.
“The IRS is committed to fairness in the tax system, and we want to remind people across all income categories that they need to file their taxes,” Paul Mamo, the director of collection operations in the IRS’ small business/self-employed division, said in a press release. “These visits focusing on high-income taxpayers will be taking place across the country. We want to ensure taxpayers know their options to get right with their taxes and avoid bigger issues later.”
The IRS said it will increase face-to-face visits with those high-income taxpayers who did not file a tax return in 2018 or previous years. The IRS has recently increased hiring of enforcement personnel, and with this additional manpower, the agency hopes to increase education about tax responsibilities for high-income taxpayers so that they might come into compliance. Representatives will also work with delinquent taxpayers to help them come into compliance.
For this new effort, the IRS is identifying “high-income taxpayers” as those who make $100,000 or more per year and who did not file a tax return.
Some people may not have filed a return because they did not understand their obligations or because they were not able to pay what they thought they owed. The IRS advises those people to speak with a certified public accountant or a tax professional to better understand their options and their obligations.
Becoming Current on Past Tax Obligations
If you are a high earner and you did not file a tax return in previous years, you need to take action now to become compliant. It will be much better for you to handle the situation before you are contacted by an IRS representative.
To start, make sure that you get your 2019 tax return filed on time. If you are having trouble getting together all the information you need to meet the April 15 deadline, talk to a tax professional in Phoenix about filing for an extension. If you know you won’t be able to pay what you owe, you can also file for an extension to pay or for a payment plan that you can afford.
Then you need to talk to a Prescott tax attorney or CPA about filing your previously missed returns. Depending on your financial circumstances, you may need to talk to a tax attorney near Chandler to help you avoid serious penalties. A good tax attorney will help you find all the options to minimize your tax liability. The lower your tax liability, the lower your interest and penalties will be. Your attorney will also be able to negotiate with the IRS on your behalf, potentially getting you a tax settlement that saves you some money.
If you have already been contacted by an IRS representative, it’s imperative that you reach out to a tax lawyer immediately. An attorney in Phoenix can represent you during the proceedings to help you protect your rights and to minimize your penalties.
Call the office of Silver Law PLC in Arizona if you have failed to file previous tax returns or if you have been contacted by the IRS because you have failed to file previous returns. Our dedicated tax attorneys in Phoenix can represent your interests during the audit or help you file missed returns. Our goal is to help you avoid criminal penalty and to reduce the monetary penalties you have to pay. We also represent clients with foreign tax reporting, innocent spouse relief, and other tax issues, including criminal and civil tax litigation. Contact us in Arizona today to speak with an experienced tax lawyer and to learn about your options.
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