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IRS Tax Lawyers in New Jersey

The Division of Taxation within the New Jersey Department of the Treasury is responsible for administering and enforcing the state’s tax laws. It oversees various tax types and operations, including audits, collections, counsel services, criminal investigations, property administration, inheritance and estate taxes, and taxpayer services, and the Division of Taxation also handles state-level tax matters specific to New Jersey.

However, for federal tax matters, such as individual and business taxes governed by federal tax law, individuals in New Jersey will generally interact with the Internal Revenue Service (IRS), which is the federal agency responsible for administering federal tax laws and collecting federal taxes. The IRS oversees federal tax obligations, audits, collections, and other related matters at the federal level.

Therefore, depending on the nature of the tax issue, individuals in New Jersey may need to engage with both the Division of Taxation for state tax matters and the IRS for federal tax matters. Consulting with a qualified tax attorney at Anderson Bradshaw can provide valuable guidance and representation in dealing with tax issues at both levels.

Offers in Compromise

An offer in compromise allows taxpayers to settle their tax debt for less than the full amount owed. The IRS considers various factors, such as the taxpayer’s ability to pay, income, expenses, and asset equity, when evaluating an offer in compromise.

To be eligible for an offer in compromise, individuals must have filed all required tax returns, made all necessary estimated tax payments, not be in an active bankruptcy proceeding, have a valid extension for the current tax year, and have made tax deposits as an employer for the current and past two quarters (when applicable).

In cases where the IRS cannot process the offer, the agency will return the application, along with the application fees, and apply any offer payments to the outstanding tax balance. The IRS provides different payment options for accepted offers, including a lump sum cash payment of 20 percent of the total offer amount followed by a remaining balance paid in five or fewer payments, or periodic monthly payments.

If a taxpayer meets the low-income certification guidelines, they may be exempt from sending the application fee, initial payment, or making monthly installments while the IRS reviews the offer. In the event of an offer rejection, taxpayers have the right to appeal within 30 days using the Request for Appeal of Offer in Compromise (Form 13711), and they can seek additional assistance from the IRS Independent Office of Appeals.

It’s important to note that the offer in compromise process can be complex, and seeking the guidance of a qualified tax professional, such as a tax attorney with Anderson Bradshaw, can be beneficial to navigate through the application and negotiation process.

Stopping Tax Levies & Liens

A tax lien is a legal claim by the government against a property when a person fails to pay their tax debts. In New Jersey, municipalities are required to hold tax sales annually to address delinquent property taxes and municipal charges. During a tax sale, a tax sale certificate is sold, which represents a lien on the property rather than the title itself.

The IRS also provides information on their website about the process of releasing tax liens. The IRS is required to release levies under certain circumstances, such as when the taxpayer has paid the full amount owed, the collection period has ended before the levy was issued, releasing the levy will facilitate the taxpayer’s ability to pay their taxes, the taxpayer has entered into an Installment Agreement that does not permit the levy to continue, the levy would create an economic hardship for the taxpayer, or when the value of the property exceeds the amount owed, and releasing the levy would not impede the IRS’s ability to collect the debt.

In cases where the IRS denies a request to release a lien, taxpayers have the right to appeal the decision. It’s advisable to seek the assistance of a qualified tax attorney or professional when dealing with tax liens to ensure that your rights are protected and to navigate the complex process effectively.

IRS Audit Defense

The New Jersey Division of Taxation conducts audits to verify the accuracy of tax filings and ensure that the correct taxes have been paid. During an audit, individuals may be required to provide records and documentation to the auditor to support the information reported on their tax returns.

Many audits also involve the IRS, especially when it comes to federal tax matters. Audits by the IRS can be triggered by various factors, such as underreported income, questionable deductions, or inconsistencies in filing status.

Receiving an audit notice is a significant event, and it is important to seek legal representation promptly to navigate the audit process effectively and protect your rights. An experienced tax attorney can provide guidance, assist with record preparation, and advocate on your behalf during the audit proceedings.

In terms of the timeframe, IRS audits generally have a statute of limitations of three years from the date of filing the tax return. However, the IRS can make exceptions to this timeframe in cases involving significant errors or fraud.

Anderson Bradshaw has experience in handling audits and can provide effective representation to help individuals facing audits by the IRS or the New Jersey Division of Taxation.

Unfiled Tax Returns

Both the New Jersey Division of Taxation and the IRS impose penalties and interest for late filing and late payment of taxes.

In New Jersey, late filing penalties, late payment penalties, and interest charges may be assessed if a tax return is filed after the due date or if the taxes owed are paid late. The specific penalties and interest rates may vary depending on the tax type and the circumstances of the late filing or payment.

Similarly, the IRS imposes failure to file penalties and failure to pay penalties for federal tax returns that are filed late or taxes that are paid late. The failure to file penalty is generally 5 percent of the net tax due per month or part of a month, up to a maximum of 25 percent. The failure to pay penalty is typically 0.5 percent of the unpaid tax amount per month or part of a month.

To avoid or minimize these penalties and interest charges, it is strongly recommended that individuals file their tax returns promptly and pay any taxes owed by the due date. Filing tax returns late not only incurs financial consequences but can also impact other aspects such as eligibility for Social Security benefits, loan applications, and potential collection or enforcement actions by tax authorities.

It is advisable to consult with a tax professional or an experienced tax attorney, like Anderson Bradshaw, to ensure compliance with tax filing obligations and to explore options for resolving any tax issues effectively.

Innocent Spouses

Innocent spouse relief is a provision that applies to married couples who file joint tax returns and are still married and living together. It allows one spouse to avoid being held responsible for additional taxes owed when the other spouse understated the taxes due on their joint tax return, and the innocent spouse had no knowledge of the error.

Under innocent spouse relief, the underreported taxes and any associated penalties and interest are attributed solely to the spouse who caused the understatement. To qualify for innocent spouse relief, the innocent spouse must demonstrate that they had no actual or constructive knowledge of the understatement and that it would be unfair to hold them liable for the tax debt.

It is important to note that there are specific requirements and criteria that must be met to qualify for innocent spouse relief. The innocent spouse must file a request for relief with the IRS, providing supporting documentation and explaining their eligibility for relief. The IRS will review the case and consider factors such as the innocent spouse’s knowledge or lack thereof, their level of involvement in the financial affairs, and whether it would be unfair to hold them liable.

It is recommended to seek the assistance of a qualified tax professional at Anderson Bradshaw to navigate the innocent spouse relief process effectively. They can provide guidance, help gather the necessary documentation, and present a strong case to the IRS on behalf of the innocent spouse.

Contact Our New Jersey Tax Attorneys

Are you currently struggling to deal with any kind of tax issue in New Jersey? Make sure you are working with Anderson Bradshaw because we have more than three decades of experience in these matters.

Our tax attorneys provide IRS tax help for residents all over New Jersey including Newark, Jersey City, Paterson, Elizabeth, Lakewood Township, Edison, Woodbridge, Toms River, Hamilton Township, Trenton, and more. Call (877) 986-1156 or contact our New Jersey tax attorney online to set up a free consultation.

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