Levins Tax Law

Be polite, but share as little information a possible until you have spoken to a tax attorney. Anything you say can be held against you and used to build a case against you. Even if your intentions are well-meaning, what you say can come back to hurt you. Take careful notes of what you’re told, as that anything they want be requested in writing, and immediately contact a tax attorney who can help you make the best decisions based on your circumstances.

No, and even if they are it does not matter. Tax issues are a matter of law and you are entitled to legal representation. Auditors and other representatives from the IRS and MA DOR are there to do a job. A lawyer might make their job more difficult, but they know it is a part of the process and that people are entitled to having a lawyer. This is a professional process and everyone is expected to behave as professionals.

It’s important to hire a tax lawyer when a tax matter arises because otherwise you have nobody on your side. As “nice” as an auditor or representative from the IRS might seem, they have one job and that’s to build a case against you. Their number one priority is separating your money from you. Tax lawyers also understand complex tax laws and can prevent you from making mistakes that can cost you more in the long run.

No. You should never delay filing because penalties will be assessed and you will end up owing more than had you filed and not paid. At the very least, you need to file for an extension so you have more time to file and to pay without penalty. Remember, the IRS accepts credit card payments. It also offers a variety of payment plan options so you’ll have more time to pay the total you owe.

A tax levy permits the IRS to legally seize your property to satisfy a tax debt. This means your wages can be garnished, money can be taken out of a bank account, or your vehicles and other personal property can be seized and sold for profit. A portion of your wages are exempt from levy – the IRS cannot leave you destitute – but a levy can significantly impact your earnings and quality of life.

Tax liens are levied when a person owes back taxes. The IRS can issue a lien against your assets in order to force you to pay off debt you owe. Tax liens are a part of your public record and if you have a tax lien on your credit report, it can significantly lower your score – by as much as or more than 100 points. Not only will you be forced to pay, you’ll reduce your chances of borrowing money at a reasonable rate in the future.

If you have forgotten or chose not to report foreign income or bank accounts on your tax return, you might have a short grace period to amend your tax return. If you fail to amend your return in time, you sacrifice your opportunity to enter one of the offshore disclosure programs that are available to taxpayers. These programs are designed to let you establish compliance on an amended return with a little penalty as possible.

Yes. You are required to report all income on your tax return, which includes income from virtual transactions and transactions that involve virtual currency. Anyone who does not properly report virtual transactions can be audited for those transactions and, when appropriate, held liable for penalties and interest. In the most extreme scenarios, this could include criminal charges, including tax evasion and filing a false return. Charges can result in fines up to $250,000 and five years in prison.

The first thing you should do is find a tax professional to assist you with the audit. The auditor works for the Department of Revenue and are not there to act as a consultant. Anything you provide to them will be used to their advantage. In theory, you should always be preparing for a sales tax audit, but once you actually get notification that one is occurring, it’s important to have a professional on your side.

First, determine if you are undergoing a narrow audit or one that is a broad audit, which is more extensive. Regardless which type of audit, it is a good idea to work with a tax professional or accountant. Representing yourself in an audit, particularly if you are dealing with high dollar returns, is rarely a god idea. The goal of the auditor is to obtain information from you and use it to prepare a case against you.