The area of tax is one that confuses many people around the world. The laws and regulations regarding the paying and filing of taxes are often quite hard to follow, resulting in quite a bit of difficulty in understanding how exactly they work. When such mistakes are made, they often result in huge fines.
My name is Zachary and with this article, my goal is to help you get around this issue and learn about the problems commonly associated with tax laws.
Common Tax Issues
Accuracy-Related Penalties. The IRS may impose a penalty for an underpayment of tax, if the underpayment meets certain criteria. Examples of accuracy-related penalty cases filed this year included a taxpayer’s failure to keep records substantiating income and failure to report the proceeds from the sale of a house. Taxpayers were fully successful about 15% of the time and split the decision with IRS about 10% of the time. In one case, Bartlett v. Comm’r, T.C. Memo. 2012-254, taxpayer lost his argument for an abatement based on a reliance on TurboTax (I guess he forgot that the so-called “TurboTax defense” didn’t work for Geithner) while in another case, Neff v. Comm’r, T.C. Memo. 2012-244, the Court agreed that taxpayer relied on the advice of a competent tax professional.
According to forbes.com, this is the number one issue regarding tax. Most individuals underfile for taxes, resulting in harassment and legal action taken by the IRS. This leads to quite hefty fines, fines that no individual wants to face.
It is incredibly important to ensure that you file for taxes correctly. Whether you do that through use of the appropriate software or hiring a professional to do it for you, it’s absolutely imperative that you get it right. I encourage you to look at the other content on my site for more information regarding the appropriate filing of your taxes.
The website linked below also deals with common tax issues and talks about how they can be avoided.
How Serious are Tax Issues?
Many lawyers like myself have been fighting for individuals facing challenge from the IRS or other tax agencies for years. To give you a little insight into just how seriously tax issues are fought, I’ve included some content from a resume below:
Associate, “Private” Law Firm, 1996 to 2010
Litigation practices highlighting federal and state felony criminal defense in trials and appeals).
Other areas of expertise included:
Defense against investigations and charges related to income tax.
Proceeds of crime matters including search, confiscation and compliance
This section outlines the area of dealing with income tax issues as well as other government agency-based claims.
I hope this drives home just how severe the government tax agencies take tax issues. They must be treated with extreme care and caution. Hire a tax professional like me for all your tax needs as this will save you tremendously.
An Entire Area of Study
Tax law issues are taken so seriously, in fact, that there is an entire field of study and education dedicated to teaching lawyers how to deal with such laws. I am a product of this field of study and will provide you with my expertise in this area.
In law schools, “tax law” is a sub-discipline and area of specialist study. Tax law specialists are often employed in consultative roles, and may also be involved in litigation. Many U.S. law schools require about 30 semester credit hours of required courses and approximately 60 hours or more of electives. Law students pick and choose available courses on which to focus before graduation with the J.D. degree in the United States. This freedom allows law students to take many tax courses such as federal taxation, estate and gift tax, and estates and successions before completing the Juris Doctor and taking the bar exam in a particular U.S. state.
This excerpt from wikipedia.com drives home just how big of an area of expertise tax law is. It is quite imperative that individuals know how seriously tax law issues are taken and do their best to file their taxes correctly.
I hope this article has helped you understand the issues and severities of tax law issues. I encourage you to look at the other tax-related content on my site as this will help you tremendously in the area of avoiding these tax law issues. I also encourage you to seek the help of a professional such as myself when filing for taxes as this will prove to be a huge money and time saver.