Tax

BANK LEVIES/WAGE GARNISHMENTS:

These are the actions that the common taxpayer fears the most. Imagine going to your bank account or getting your check and you find that it is significantly lower than it should be!

The IRS will send you collection notices prior to levying your account or garnishing your wages. It is imperative to call The Law Firm of Keith A. Cothroll before you are levied or garnished so that we can work with the IRS to come up with a resolution that works for you. However, if you do receive a levy or garnishment, do not worry! We can work with the IRS on your behalf to remove levies or garnishments.

IMPORTANT NOTE ON BANK LEVIES: The bank will hold your funds for 21 days before releasing the money to the IRS. Once the IRS receives it, short of extreme circumstances, it will nearly be impossible to get the money back. So, if you receive a levy notice, call without delay The Law Firm of Keith A. Cothroll to help you with your notice.

OFFERS IN COMPROMISE:

The IRS has a program that will allow you to settle with them for an amount less than what you owe. They do not settle for, “pennies on the dollar”, but rather based on your ability to pay. Here is where you need competent TAX ATTORNEY representation because the IRS scrutinizes offers in compromise very closely. They will look at your income, assets and household expenses to determine your future ability to pay. If you file an offer in compromise by yourself, you may accept their determination without knowing that their determination is not always right. The IRS can find that you earn more income that you do or disallow an expense that should be allowed. The difference between an accepted offer and a rejected offer can be based on a few dollars. The Law Firm of Keith A. Cothroll can prepare your offer and ensure that you are treated fairly in the offer process.

TAX PREPARATION:

It’s very important to file all your tax returns. See the substitute return tab for one reason why. It’s also important to file your returns because failure to do so can create a criminal case against you for evasion of tax depending on the circumstances. At the Law Firm of Keith A. Cothroll, we can prepare individual, business and employment taxes to keep you compliant with the IRS.

IDENTITY THEFT:

Identity Theft is a new, but very large part of the typical reasons why taxpayers run afoul of the IRS. With all the computer hacks and other breaches of security, taxpayers can find themselves receiving bills from the IRS for income that they never earned! Identity theft typically involves cases where a tax return was filed fraudulently on your behalf or someone has used your social security number to earn income from another party. In either case, the IRS does have procedures to remedy your problem. However, it does involve specific proof and paperwork that you’ll need TAX ATTORNEY representation for. At the Law Firm of Keith A. Cothroll, we are experienced with identity theft issues and can help you get the relief you need.

LIENS:

Liens against your home and assets are commonly filed by the IRS against tax balances that you owe. These liens can be a real headache if you want to buy or sell a home or get a line of credit because they attach to your credit report and property. Liens can be removed through a lien discharge or offer in compromise.  Otherwise, it is very difficult to do. The IRS will automatically file liens if collection notices continue to be ignored so it’s very important to read those when you get them. If you do get a lien, you’ll want to call the TAX ATTORNEY at the Law Firm of Keith A. Cothroll.

SUBSTITUTE RETURNS/BACK TAXES:

If you fail to file your tax returns, the IRS will file them for you by using all the w-2s and 1099’s submitted to them by third parties. You never want the IRS to file the return for you! The IRS will only file the return with income information and use a single filing status regardless of your actual filing status and any deductions you could normally take. This results in a severely inflated tax return that you will owe money on! Once this return is filed, the IRS will send collection notices and file liens, levies and garnishments if ignored.

If you failed to file a return, you’ll want someone who can file the return with all the deductions that are due to you! At the Law Firm of Keith A. Cothroll, we can file your missing returns and work out an affordable payment arrangement for you if you owe.

MORE EMPLOYMENT TAX ISSUES:

Worker Classification

The IRS has recently ramped up their efforts to “correct” worker misclassifications especially in the construction industry.  When the IRS selects your business for an audit, they will reclassify your 1099 workers as w-2 employees and impose 940/941 requirements as well as trust fund penalties for failure to pay FICA and social security taxes. This leads to large amounts of taxes, interest and penalties!

The IRS uses tricky and complex tax rules that are very confusing so it’s imperative to contact a tax attorney at The Law Firm of Keith A. Cothroll to represent you in the audit to make sure that the IRS is classifying your workers correctly.

Voluntary Classification Settlement Program

Sometimes it is beneficial to allow the IRS to reclassify some of your workers. This program provides taxpayers with the opportunity to voluntarily reclassify a worker as an employee. The main reason why a taxpayer would agree to the program would be to receive partial relief from federal employment taxes which are due because of any misclassified periods of employment.

Again, the tax attorneys at the Law Firm of Keith A. Cothroll can guide you through the correct decision to make should you get ensnared by an audit such as this.

If you are not under audit, then the Law Firm of Keith A. Cothroll can also advise you whether you have classified your workers correctly and to file the correct paperwork to avoid any issues with the IRS.