New Rochelle Tax Lawyer

New Rochelle locals sometimes experience legal tax issues with the IRS and local New York authorities. If you have a personal or small business tax problem, you may need to contact a local New Rochelle tax attorney. Read on to learn how a skilled tax lawyer in New Rochelle can help.

Is Tax Law Particularly Complicated?

Most Americans would agree that taxes here are complicated. Regarding tax laws, America has some of the most complicated in the world. This causes many people to use CPAs and accountants to prepare taxes each year. However, many other people feel this should not be necessary. Unfortunately, American tax laws get increasingly complicated each year. This leads more people to turn to tax professionals for help with standard filing and tax law issues as they arise.

How Common are Tax Law Issues?

In 2021, the Internal Revenue Service (IRS) audited 659,003 individual tax returns of the 160 million returns received. This resulted in a total audit rate of 0.41% of the returns receiving an audit, or just over four audits per every 1,000 tax returns. While the chances of being targeted for an IRS audit are relatively low, the chances are not so low as to be entirely unlikely, particularly if you have red flags or other issues on your personal or business tax returns.

However, it is not just the IRS initiating audits. Between January and August of 2021, New York state authorities sent more than 149,000 audit notices to local New York taxpayers. New York state is known to be a particularly aggressive tax collector, targeting individuals with high net worth. In 2021, however, their strategy changed somewhat to include residents with salaries in the $100,000 to $300,000 range.

The Most Common Tax Law Problems

The most common issues on tax returns occur when a filer fills in data incorrectly, like misspelling a name or making a mistake with a social security number. In these cases, your return could be rejected, and you can fix it immediately, or you could fix an accepted return when you file the following year. However, other mistakes could result in significant legal issues.

Not Filing

There are plenty of reasons people fail to file their tax returns. Some common excuses include:

• You did not think you could afford to pay the taxes you owed.
• Your ex-spouse handled the taxes, but since the divorce, you have been lost on how to tackle tax returns.
• You missed filing tax returns for several years and are scared of the repercussions.
• You were too busy and overwhelmed with other issues.
• You could not find the records to complete your tax return properly, so you did not file.
• You are afraid of making a bad situation worse.

If you have unfiled taxes, it may be advisable to work with a local tax attorney in New Rochelle, NY, to help set your accounts in order.

Not Filing on Time

Sometimes people file, but they have a habit of filing past the deadline. Perhaps you filed late because you could not afford to pay the taxes you owed. Unfortunately, this can result in additional fees being charged to the taxpayer. However, a skilled tax relief lawyer in New Rochelle, NY, may be able to help you negotiate affordable payments.

Omitting Income and Earnings

Another issue arises when taxpayers omit part of their income or other earnings. Perhaps you have a side gig and forgot to include the money you generated. Or maybe you thought you only needed to report your primary salary if your side gig earned less than a certain amount. Other times, people get confused about reporting earnings on various investments they may hold. These seemingly innocent mistakes can trigger federal and state tax audits, resulting in severe penalties. If you believe you have made these errors, a tax lawyer in New Rochelle can advise you on your legal options and help you correct your error.

Small Business Tax Return Issues

Many small business owners start off doing their own taxes until their business grows to a certain size. Then, they may outsource this role to an accountant, CPA, or tax lawyer to ensure error-free reports are filed. However, sometimes entrepreneurs make mistakes when filing these taxes. If you think your business’s tax returns may contain errors, it is best to consult with a corporation tax attorney in New Rochelle, NY. Your lawyer can examine past documents and files for accuracy and any red flags.

What to Do When You Have a Tax Law Problem

If you have made one of these common mistakes, or the many others that taxpayers make, it is best to rectify the situation as soon as you realize the error. A New Rochelle tax attorney can help you solve issues with state and federal tax authorities. If you believe there may be errors with previous tax returns, your lawyer can review your documents and advise you on your legal options. If paying any taxes owed would cause an undue burden on you and your family, a skilled tax lawyer may be able to help.

What Does a New Rochelle Tax Lawyer Do?

Tax law is a technical legal niche designed to help taxpayers.

A local tax attorney can help you with local and federal tax preparation legalities. Tax lawyers can file taxes, just like CPAs, but they are also highly trained to handle legal issues pertaining to taxation. Tax lawyers focus on providing services related to these issues.

If a federal or local tax authority contacts you or your business about a tax issue or audit, it is often advisable to employ the counsel of a local tax lawyer familiar with local and federal issues of taxation. The ideal lawyer for your scenario should be familiar with the type of problem you are facing.

Tax attorneys provide a wide range of services, including:

• Tax installment agreements
• Payroll taxes
• Reducing IRS penalties
• Release of tax liens and levies
• Working with clients being audited
• Negotiating tax disputes.

If you are unsure whether a tax lawyer can help with your tax problem, you should schedule a consultation to discuss the matter directly. A skilled tax attorney may be able to help simplify your issue and expedite an amicable resolution.

Who Should Hire a Tax Attorney in New Rochelle, NY?

Tax concerns can arise when you least expect them — an experienced New Rochelle tax attorney may be able to help.

When you need a local New Rochelle tax attorney, you should seek a lawyer who is skilled and knowledgeable about the issues you are up against. Here are some red flags that indicate you may need a local tax lawyer:

• The IRS assigned a Revenue Officer to your case.
• You have an unusual or particularly complicated financial situation.
• You would prefer to hire a professional to save yourself the time and stress of personally handling your taxes.
• You owe $10,000 or more to the IRS or NYS.
• You own a business or are self-employed.
• The IRS is contacting you, and you feel intimidated or uncomfortable handling the communication.

These signs indicate a situation where a local tax lawyer may be particularly beneficial. However, other situations indicate that it may be imperative to hire a tax attorney. Signs of a more serious situation include:

• You have undisclosed foreign bank accounts.
• You have valuable assets you wish to protect from the IRS.
• You have indications of tax fraud, such as unreported income.
• You owe the IRS $1,000,000 or more.

When these situations arise, it is particularly critical to retain a tax lawyer to help guide you through the legalities.

What Can New Rochelle Tax Lawyer Timothy S. Hart Help Me With?

Timothy S. Hart is an experienced tax lawyer with a history of helping New Rochelle residents with their tax issues. When a tax problem arises, he can help you right the situation. He specializes in the following areas, amongst others:

Tax Audits

The IRS may audit your personal or business taxes. Regardless of which taxes the authorities are auditing, they will begin with an initial investigation. They may request additional documents and information or ask to interview you. If you violated the law or mishandled the process, criminal charges could be placed against you. If you find yourself or your business at the center of a tax audit, it is critical that the event be handled with meticulous care. Exhaustive attention should be given even to seemingly minor details. A tax audit attorney can help ensure your accounts are in order.

Back Taxes

Having unfiled IRS or New York State tax returns can put you at risk of back taxes. Every year, some American fail to file their tax returns. When the IRS tracks you down, you will face penalties and fees called back tax returns.

• Failure-to-file (FTF) penalties are 5% of the tax debt owed per month.
• Failure-to-pay (FTP) penalties are 0.5% of the taxes owed.

However, it is possible to fix the situation before the IRS gets to your case. A back tax lawyer can review your case and help you file tax returns for the years you failed to report.

Offers in Compromise

Tackling years of back tax liability can feel impossible. However, if you owe more than you can afford to pay, a tax law attorney may be able to help you with an offer in compromise (OIC) agreement. In some cases, you may be able to reduce your tax liability considerably.

Tax Evasion Concerns

Tax evasion is a serious allegation. If found guilty, you may face exorbitant fines and imprisonment. You may be guilty of tax evasion if you owed a tax and you intentionally evaded paying it. A tax evasion attorney can review your case and advocate in your defense to help you achieve the best outcome possible.

Reducing IRS Penalties

If you are facing IRS penalties, a skilled tax lawyer may be able to help you reduce your IRS penalties. The IRS Penalty Abatement petition was created to address valid reasons why Americans may fail to pay or file their taxes. Under this petition, you may be eligible to have your penalties reduced or erased.

Why Should I Choose Tax Lawyer in New Rochelle, Timothy S. Hart, to Represent My Interests?

Timothy S. Hart, the founding partner of Timothy S. Hart Law Group, P.C., is an experienced New Rochelle tax attorney and CPA. He is admitted to the American Bar Association, the U.S. Tax Court, and the American Institute of Certified Public Accountants. He delivers innovative solutions to tax issues involving the IRS and New York state. He is also skilled in tackling Foreign Bank Accounting (FBAR) cases.

Timothy S. Hart, CPA, offers personalized service to his clients. You will work directly with him on your tax issues until the case is closed. Read what past clients say about working with him.

Contact the New Rochelle Tax Lawyer You Can Trust

New Rochelle Tax Lawyer Timothy S. Hart has helped clients like you reach their legal tax goals. His experience and knowledge are key to helping you resolve legal tax problems. You can contact Timothy S. Hart at our New York office at (917) 382-5142 or our Albany office at (518) 213-3445 to schedule a tax law consultation.