All individuals and businesses face the prospect of review by a variety of governmental agencies and jurisdictions. These reviews, investigations and audits may be time consuming and have the potential of significant monetary and other legal exposure. Some of the areas reviewed include Federal personal and business income tax audits, State personal and business income tax audits, payroll tax audits, Department of Labor Workmen’s Comp claims, Sales tax audits, and other union and benefit compliance cases.
Why Do I Need a Tax Attorney?
It is important that you engage a tax professional once you are audited or receive correspondence from any taxing or governmental jurisdiction. This will enable you to avoid unnecessary contact with the agents and to properly plan the proper response and strategy with respect to the audit process.
What Do I Do If I Received a Notice of Deficiency?
If you received a notice of deficiency or 90 day letter, it is important to respond to this notice immediately in order to avoid limiting your rights and options. In these cases a petition must be filed within 90 days in order to dispute and defend against the tax adjustment. Failing to petition within the 90 day period will require the taxpayer to pay the tax assessed before being permitted to challenge the basis for the assessment. Failing to petition within the prerequisite time will also preclude access to the Tax Court.
There are several reasons why you may receive a notice of deficiency. Some examples include computer audits which assess tax based on 1099 or other matching programs and audits by the IRS or notices issued because the statute of limitations on a tax year is approaching. These tax assessments may also be the result of an audit by a tax agent. The IRS reviews matters relating to unreported income, deductions and credits claimed on the tax return. Other audits may address residency, tax status or other matters.
Tax and Estate Planning
It is prudent to address tax planning on a regular basis. Income tax planning is needed to consider strategies related to changes in the law and year-end planning. It is also important to consider estate, inheritance and issues of wealth transfer. Trusts are sometimes necessary in order to meet special needs arising out of incapacity, medical conditions or other disabilities. The appropriate tax and estate plan will provide the utmost protection for you and your family.
We are available to provide you with a variety of tax and estate services with respect to all of your personal and business needs.