Taxes are assessed by local, state, and federal governments to provide for common resources, such as roads, schools, and transportation. Florida has no state income taxes, but they are still required by the federal government. The Coye Law Firm understands that with many citizens comes inevitable errors in accounting and bookkeeping. Below are some common problems with income taxes, but if your situation isn't quite so simple, call us today.
One of our experienced tax attorneys can help you understand the system and communicate with the parties involved to come to a resolution. Two of our attorneys are licensed to practice in the United States Tax Court if your case should go that far. Even routine tax matters, such as yearly filing, can be handled by our offices.
Your claim may overlap with other areas of the law that the Coye Law Firm specializes in. Wrongful death, probate, or workers' compensation claims may require you to provide some kind of tax information or defense. In the course of your case, you may need to fill out the following forms:
Form 4506 : Request for Copy of Tax Return
Form 56 : Notice Concerning Fiduciary Relationship
Form 2848 : Power of Attorney and Declaration of Representative
Individual Tax Problems
Q: What happens if I can't pay the taxes I owe?
A: You should still file a return if you are unable to pay all of your taxes at once. There are fines and criminal charges that can result from not filing a tax return, so it is important to at least do this. The Internal Revenue Service (the agency that collects taxes) advises that you should pay the most you can towards your taxes to avoid penalties and interest. The IRS also suggests that you call them to discuss your options and to see if you qualify for any extensions or waivers.
Q: The government is telling me I owe them taxes. I already paid the amount in full. What do I need to do to resolve this?
A: The IRS has an appeals process for anyone that disagrees with the taxes leveled against them. The agency developed this office to handle disputes without having to go into the legal system. More information, including whether or not you qualify for an appeal, is available here . contacting the IRS can help you determine if your error is minor or one that will require legal intervention.
Q: Who can I talk to if I have general questions?
A: The Florida Department of Revenue has set up a question and answer database that allows users to search for their specific problems. If you are unable to find an answer here, there is a tab to ask a new question. If you have questions about the law and taxes, consult an attorney at the Coye Law Firm to navigate the issue. Taxes are not something the government takes lightly, so if you are in a legal predicament over taxes, you should discuss your case with a tax lawyer to avoid further legal charges or to resolve the dispute completely.
Your rights as a taxpayer are outlined in this short document . It explains the way the IRS conducts business and what protections you have under the law.
Business Tax Problems
Q: What can I deduct on my taxes when filing for my business?
A: business expenses are generally deductible if they are ordinary and necessary in your trade. These can't be personal expenses, capital expenses, or the expense of determining the cost of selling your products. The cost of selling goods is usually calculated in the amount of profit a business makes, so it can't be deducted again when filing taxes. Personal vehicles and homes may provide a deduction in business taxes.
Q: I've received notice of a federal tax lien. What is this?
A: The IRS can assess a lien on your property if you haven't paid the taxes you owe. They send a Notice for Payment and if that is ignored, they send a Demand for Payment. The lien--an obligation that the property owner must fulfill for the lien holder--is the amount of taxes you owe to the IRS. For example, if you owe $2,000 in back taxes and refuse to pay, the IRS can claim ownership of $2,000 worth of your business property. The lien may even be attached to your accounts receivable so the money coming into the business goes directly to the IRS to satisfy your debt. Liens affect your credit rating, so it is important to avoid them. Once liens are satisfied, they are removed within 30 days. If the process takes longer, business owners may file a request for the certificate of release for a federal tax lien, found here .
For more FAQs, visit the IRS's search engine .
Taxes can be complicated when combined with foreclosures, mortgages, or other loans. If your tax problem is not easily solved or more serious than you anticipated, contact a lawyer at the Coye Law Firm. Most of our lawyers are able to take your case and defend you in the U.S. Tax Court. Even if your case doesn't make it that far in the legal system, their knowledge and experience can help you settle any issues or questions you may have with taxes.