How do I take advantage of IRS loopholes?
Individuals and businesses can structure their tax affairs to legally avoid taxes under the current Internal Revenue Code and state equivalents. There are no “IRS loopholes,” however; instead, proper planning allows individuals and businesses to legally maximize their tax benefits.

If you use a tax professional, please ensure that they are reputable. Otherwise, you-and you alone-will be responsible for your penalties, interest, and possibly criminal sanctions for your illegal tax avoidance and tax evasion scheme.

If you have been deceived into using a tax avoidance scheme and face penalties and interest, please contact us immediately. If you would like to learn how we can help you legally maximize your tax benefits, please schedule an appointment with the firm.

I am having tax problems with foreclosed investment properties. What should I do?
Tax problems associated with foreclosure property are complex and require specific advice for your situation. Please contact a tax lawyer.

Answers for income tax questions
Only by applying relevant tax law to your situation can your tax problem be solved. Please contact our firm your answers to your specific federal and state income tax questions. We represent individuals (including international clients), businesses, trade contractors, and non-profit organization. Our practice includes representation before the IRS, Colorado Department of Revenue, New Jersey Division of Taxation, the Virginia Department of Taxation, and other state tax departments as permitted by the relevant attorney ethics regulations. Regardless of location, the W.L Henry law firm can represent you before the IRS.

Can the IRS be included in bankruptcy?
Yes. However, under most circumstances, bankruptcy will not discharge all of your tax liability. Whether a tax debt is dischargeable depends on the taxpayer’s filing and paying history, the type of tax owed, and the date of assessment of the tax. The W.L. Henry law firm advises taxpayers and bankruptcy attorneys on the discharge of tax liabilities.

If you are having financial difficulty, it may be possible to discharge or reduce your tax burden through an offer in compromise or penalty abatement. Only a review of the facts specific to your can determine if the IRS can be included in bankruptcy or if an offer in compromise or other method is the best approach to your tax problems.

Who does the IRS audit?
IRS audits are on the increase. In 2007 the IRS audited:

1,384,563 individual tax returns, an increase of 7% from 2006 and the highest number of individual tax return audits since 1998. 17,015 of these audits were of individuals with income of income over $1,000,000 (an increase of 84% from 2006). 293,188 of these audits were of returns with income of $100,000 or more, up 13.7% from 2006.

The IRS increased its efforts to audit flow-through entity returns (Limited Liability Companies, Partnerships, and S Corporations). Audits of partnerships (and limited liability companies) increased to 12,195 in 2007, up nearly 25% from 2006. Audits of all businesses increased nearly 14% from 2006 to 52,223.

Flags for IRS Audit?
Flags for an IRS audit can include returns that may have an incorrect amount based on information returns filed such as 1099s and W-2s. Other sources of flags for IRS audits are public information such as newspapers, public records, and individuals. Audits are random as well. We provide tax return preparation services and audit defense. Contact us for more information.

IRS tax amnesty
The IRS does not offer tax amnesty. The IRS may be willing to enter into an offer in compromise, an installment agreement, or abate penalties.

What are the federal tax penalties for monies owed?
A summary of IRS tax penalties is available at the IRS Penalties & Interest section of our website. Topics include penalties for late tax returns.

What is the penalty for taking wrongful tax deductions?
If your tax deduction was incorrect, it may or may not trigger a penalty.  An IRS underreporting penalty (an accuracy-related penalty) applies, for example, if the wrongful tax deduction was based on negligence or involved a substantial understatement of income tax. If the wrongful tax deduction was due to fraud, the civil penalty is 75% of the tax that you did not pay due to fraud. Other penalties may apply as well.

IRS tax penalty: IRS, Pension
Income tax problems for Americans working in Canada
The W.L. Henry law firm answers U.S. and Canadian tax questions as it concerns U.S. tax laws and the United States-Canada Income Tax Treaty. The firm also solves income tax problems for Americans working in Canada.

Whether you are required to fulfill U.S. and/or Canadian tax obligations depends on factors such as citizenship, residency, the type of income you receive, and whether the United States-Canada Income Tax Treaty applies to you. For example, under the income tax treaty, benefits paid under the Canadian Pension Plan are taxable to U.S. citizens only if they reside in the U.S.; that is, if a U.S. citizen resides in Canada, he or she is not tax on that income (but may be taxed on other income). Establishing residency can be complex and may be challenged by the IRS. Please contact the W.L. Henry law firm for more information.

I need to file my taxes! Late filed tax returns and how to deal with them.
A late filing of federal taxes can cause a variety of problems: tax penalties and interest that can exceed the original tax due and you may face possible criminal liability for failing to filing if nothing is done. If you have failed to file a tax return, we urge you to talk to a tax lawyer as soon as possible. See the Failure to File section of our website for more information.

How late can I file taxes?
It depends. The U.S. tax system is a “pay-as-you-go” tax system. That means that you must make estimated payments of your taxes if taxes were not withheld or the withholdings were insufficient. Further, although you can receive a six month extension in most circumstances to file, the extension does not extend the time that you have to pay your taxes. Finally, taxpayers are on different taxable years. For most individuals, the tax year ends December 31, with a tax return required to be filed on April 15. A six month extension will extend the time for filing (not paying) your tax return to October 15 of that year. (international taxpayers may have a longer period to file). Filing taxes late is an issue that must be dealt with immediately. Please contact your tax attorney as soon as possible if you have failed to file your tax returns.

IRS, Illegal Use of Levy
If the IRS has wrongfully levied your property, you have the right to a return of the levied property. For example, if you are the non-liable spouse and the IRS levies a state income tax refund you may have a right to return on the refund. The IRS in certain circumstances may owe you fees and out-of-pocket expenses.