Income Tax Attorney
When Uncle Sam demands payment, an income tax attorney can help resolve indebtedness and stop harassing collections. Owing the Internal Revenue Service is no laughing matter. Millions of taxpayers are troubled by mounting penalties and interests, wage garnishments, bank levies, and ruined personal credit all due to an inability to pay or resolve past due federal taxes. While most individuals view the Internal Revenue Service as a big bad wolf eager to devour little Red Riding Hood, the federal government's goal is to collect taxes which help fund services for public programs. The nation depends on such revenue to keep the country financially solvent; and when taxpayers defer to pay, everyone suffers. "For this cause pay ye tribute also: for they are God's ministers, attending continually upon this very thing. Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour. Owe no man any thing, but to love one another:" (Romans 13:6-8a). In addition to penalties and interest, delinquent tax obligations are not dischargeable by bankruptcy and can severely damage an individual's credit worthiness. But an independent IRS tax lawyer can work with debtors to clear up past delinquencies.
A reputable income tax attorney works with delinquent taxpayers to mediate Internal Revenue Service issues, stop collection efforts, and settle federal and state unpaid obligations by negotiating with the IRS and state revenue agencies to reach favorable and manageable debt resolution. The Internal Revenue Service provides many options to resolve taxpayer debt; and an experienced IRS tax lawyer will be familiar with methods which are applicable to a client's particular situation. Attorneys may negotiate a payment plan, or Offer in Compromise, which reduces the amount owed and enables delinquent taxpayers to make monthly installments until the reduced amount is paid in full. Debt solution attorneys help debtors prepare lengthy income earnings statements, records of creditors owed, and listings of assets and liabilities. While Internal Revenue Service counselors consult with a debtor's legal representative to work out the details of payment plans, the debtor is under no obligation to personally confer with the IRS. Debt collection proceedings cease during negotiations and once payment plans have been implemented.
In order to work out an Offer in Compromise with the Internal Revenue Service, debtors must file all returns for prior years. A competent IRS tax lawyer can help delinquent payers comply with filing regulations for individual and business requirements. In many instances, the Internal Revenue Service will work with attorneys to restructure business and personal revenue debts, or resolve long standing discrepancies on old returns. The U.S. Department of Revenue understands that delinquency can be a result of a myriad of financial setbacks. Individual taxpayers may become unemployed or disabled and are left with unpaid obligations. Divorce, death of a spouse, and bankruptcy are also contributing factors which can lead to an inability to meet obligations. But knowlegeable lawyers can negotiate old debts according to a taxpayer's current financial situation by presenting substantial evidence of the debtor's changing economic status.
Men and women who serve overseas in the military also face revenue issues. While the U.S. Armed Forces employs military personnel to help service men and women resolve complicated financial matters, stateside spouses and family members may consult an income tax attorney to help clarify and mediate problems. Military personnel returning from overseas assignments may fall behind in revenue obligations due to an inability to secure employment. An astute IRS tax lawyer will know how to deftly plead a serviceman's case to the Internal Revenue Service and negotiate a favorable settlement on the client's behalf. While IRS obligations are not dischargeable in Chapter 7, 11, or 13 bankruptcy cases, an experienced tax attorney can negotiate for a debt reduction or settlement, which will enable debtors to gradually clear up delinquencies. Again, once an attorney begins negotiating with the Internal Revenue Service, collection efforts cease. And although the debt cannot be forgiven, the taxpayer is alleviated from the emotional trauma of dealing with the collection process.
Once the government accepts an Offer in Compromise, or debt resolution, the IRS tax lawyer will advise the client to not default on payment arrangements. Defaulting on an Offer in Compromise will result in back taxes being due and payable, including interest and penalties. In other words, debtors will be back to "square one" and a second Offer may not be accepted due to a failure to honor the first commitment. Debtors should work with an attorney to ensure that the Offer in Compromise suggests a reasonable payment plan within certain budget restraints. IRS debt settlement is usually limited to no more than five to six years to catch up delinquent payments. Depending on the amount owed, some debtors may ask attorneys to devise a more manageable plan to reduce their debt.
Hiring an income tax attorney can be expensive. Taxpayers seeking legal help in resolving Internal Revenue Service disputes should be prepared to pay either a retainer, an hourly fee, or a percentage of monies owed. Retainers are flat rates for services rendered during a specific time frame. Hourly rates can range from $100 to $250 depending on the complexity of the case. Attorneys may charge 10, 15, or as much as 30 percent of the adjusted fee settlement, which can amount to a hefty sum! Of course, a reputable lawyer may offer payment via installments. Debtors should select attorneys who are knowledgeable of federal and state revenue regulations, particularly intricate details of collection and debt resolution proceedings. Dealing with the IRS is one instance when hiring a novice is definitely not a good idea! Some attorneys are retired IRS counselors and are intimately aware of how the system works. Above all, debtors should steer clear of debt resolution attorneys or firms which make claims of settling back taxes for pennies on the dollar. Remember: If it sounds too good to be true, it probably is.
International Tax AttorneyMany individuals require the services of an international tax attorney or international business lawyer to protect the interests of personal or company assets. Most large companies have at least some international contacts and contracts for natural resources, workers or distribution purposes. With increasing e-commerce developing, these webs of contacts become ever more complex. Think about all of the normal problems which arise while doing business. Then add the possibility of complications which arise because of differences in language or culture. Factor in the multitude of legal requirements of the various countries with which a company may do business. Without the help of an international business lawyer who has experience in these matters, a company can soon find itself mired in a legal nightmare. Personal assets associated with foreign countries may also require consultation with an international tax attorney to ensure that International Revenue Service (IRS) requirements are being met.
Although these professionals will be willing to help clients with a multitude of areas, most would agree that the best time to order a consultation is before a person enters into international contracts or investments. That way the best possible foundation is laid for one's personal or business matters. This is especially true because advice is often sought when clients are in the midst of beginning, reorganizing or ending an international business matter, or when clients are about to move into or out of the United States. Tax benefits are best realized if plans are made before entering into these activities. For example, some actions could result in increased tax burdens. However, if advice is sought prior to taking any action, one may be able to avoid additional taxes.
There are substantial penalties for failing to report transactions involving other countries. Therefore, it is wise to establish a relationship with an experienced international tax attorney who can provide information about United States filing requirements. Usually these are quite willing to work with a business' own lawyer to come up with the best solution for the corporation. Also, these professionals may have their own network of contacts within the foreign countries who can assist with information about taxes or other legal issues.
Tax attorneys specialize in representing taxpayers. They may provide advice in areas ranging from personal liability to corporate laws and requirements. Usually, the taxpayer does not have to be present for the lawyer to represent him or her to the IRS. This is very convenient, especially for those who may live abroad or who are presently occupied with matters in another country. Although there are many areas of special expertise, look for evidence of experience in dealing with the IRS and especially, with the areas most relevant to the taxpayer's own case. An experienced international tax attorney should be able to provide references from individuals who have had issues in similar areas as the prospective client.
Some areas of specialized expertise which a tax attorney may display are the following: Sales of stock or assets, treaties, passive foreign investment companies, and tax planning. Joint ventures, income sourcing, foreign credits, and foreign currency transactions are also areas which may require assistance of some type. These are just the tip of the iceberg. Actually, one might be wise to check with an international tax attorney before initiating any type of exchange involving foreign money. Frequently, the tax attorney may have a significant role at first while setting up the required organization or investment. It is likely that this contact will diminish as time goes on, except for consultation at occasional crossroads for the business or investment. However, the help that these professionals can provide will pay for itself in the fees and difficulties which he or she can help an individual avoid. Peace of mind from knowing that one is conducting business in a legal and honorable way is also of inestimable value. As the writer of Proverbs 10:25 says, As the whirlwind passeth, so is the wicked no more: but the righteous has an everlasting foundation.
An international business lawyer specializes in tax questions pertaining to business. They may deal with strategic tax planning and its practical outworking when a business has to deal with a multitude of borders or jurisdictions. Many firms employ staff in a variety of countries who can provide advice on a multitude of issues. These firms also may maintain a network of local contacts who can facilitate matters in their specific areas. Some of the issues which might require help may be acquisitions or divestitures which involve crossing borders, managing financing, equipment leasing or other financial matters which are complicated by distance, and advising about joint ventures or emerging markets. A business tax attorney may become involved in treaty negotiation, advance pricing agreements or other items related to major transactions involving other nations. At times, an international business lawyer must be able to handle transactions or developments which are on the cutting edge of finance and law.
An Internet search can reveal directories for finding appropriate professionals to deal with the issues which are important to one's particular industry or investments. Some issues which clients may be dealing with are commercial disputes due to licensing or trademark claims, collections, and international fraud. Real estate development and e-commerce issues are also assuming greater roles in international business matters. Whether the issues are large or small, these tax professionals are ready to help an individual make wise decisions concerning business or personal investments.