Legal Assistance With Your Tax Related Needs
Do you have a tax lawyer? This is something that many people don’t think about until they find themselves in a sticky situation. Tax law can be very complicated and confusing to the average person, so it’s best to hire someone who knows all of the ins and outs. You need our reliable Columbia, MD tax lawyer that will help you not only with your taxes but also make sure you are following the law!
The legal team at Crepeau Mourges is experienced and knowledgeable about all legal aspects of taxes. We can provide guidance on how to avoid penalties and maintain your status as an upstanding citizen!
How Our Tax Lawyer Can Help You
The IRS has a lot of rules and regulations that can be difficult to understand. What’s worse is that the penalties for not following them are harsh. A tax lawyer can help you navigate through this complicated system with ease, so you don’t have to worry about a federal audit or any other repercussions from the IRS.
Tax lawyers specialize in understanding all aspects of the tax law and can offer advice about how best to minimize your taxes while following the letter of the law. A tax lawyer in Columbia, MD can help with all kinds of tax issues and they can also be a great resource for other types of legal issues as well. Tax law can be very complicated and confusing to the average person, so it’s best to hire someone who knows all of the ins and outs.
A tax lawyer is often needed when someone is considering filing bankruptcy due to unpaid debt, they want to file a claim against the IRS for an erroneous tax refund, or they need assistance with estate planning after inheriting money or property. Financial advisors will typically recommend that clients consult with a qualified attorney if they have any questions about taxes because of the complexity involved in this area of law.
Tax Penalties At-a-Glance
There are numerous types of penalties that the IRS may place on an individual or business. Tax codes are notoriously complicated and a tax lawyer in Columbia, MD, can help you navigate the complexities of the law and avoid or address penalties. You can access in-depth explanations on the IRS website, but here is a simplified overview of the information.
Information Return
This type of penalty is applied to taxpayers who fail to submit information returns or provide a payee statement by the specified due date. The IRS charges separate fees for each return and each statement that you should have provided but didn’t. The fee structures vary depending on how late the submission was, and interest accrues until the fees are paid in full.
Failure to File
This penalty applies if you do not file your taxes by the due date. The amount you are charged is calculated based on how late you file and the amount of your unpaid tax. For each month a taxpayer is late to file, the IRS charges 5% of the unpaid tax amount. There are exceptions, stipulations, and limits to this rule, which the lawyers at Crepeau Mourges can explain and apply based on your unique circumstances.
Failure to Pay
If you do not pay the taxes that you owe, you can expect to be penalized by the IRS. You may also receive this type of penalty in conjunction with, or in addition to, other penalties, which may change the fee structure and percentages. The stress associated with these tax scenarios can make an already confusing process even more difficult to understand. Working with a trusted and competent tax lawyer in Columbia, MD, can remove the uncertainty surrounding your next steps.
Failure to Deposit
This penalty applies to employers who run into problems making employment tax deposits. If an employer does not make these deposits on time, with the right amount, and in the correct way, they may face a penalty. Examples of employer-paid taxes include Medicare, Federal Income, and unemployment taxes. If you are an employer responsible for these payments, you must submit these deposits to the IRS on either a semi-weekly or monthly basis.
There are also underpayment, tax preparer, and accuracy-related penalties. You can also be charged by the IRS if you submit a dishonored check as your payment.
With so many possible ways to make a mistake, you need a knowledgeable tax lawyer in Columbia, MD, on your side.
Tax Lawyer Glossary
At Crepeau Mourges, our tax lawyers in Columbia, MD, provide guidance for individuals and businesses facing various tax penalties and IRS issues. Here, we define common tax terms and penalties that can arise, helping clients understand and manage their tax obligations more effectively.
Information Return Penalty
The IRS imposes an information return penalty when taxpayers fail to file required forms, known as information returns, or neglect to provide payee statements by the due date. These forms include items like Form 1099, used for reporting payments to independent contractors. The penalty amount depends on how late the filing occurs, and interest accrues on unpaid penalties until the balance is fully settled. Separate fees are charged for each missed return and each missing payee statement, meaning the costs can add up quickly. We help clients address these penalties by reviewing filing obligations and working toward penalty reductions or abatements where possible, allowing them to regain compliance.
Failure To File Penalty
This penalty applies when a taxpayer does not submit their tax return by the specified due date, including any applicable extensions. The penalty rate is generally 5% of the unpaid tax for each month the return is late, up to a maximum of 25% of the total amount due. When coupled with interest, the costs of a late filing can escalate rapidly, making it crucial to submit returns on time, even if the full tax amount cannot be paid immediately. We work with clients to reduce this penalty through negotiation and can help arrange filing schedules that avoid further charges.
Failure To Pay Penalty
A failure to pay penalty arises when a taxpayer does not fully settle their tax debt by the due date. This penalty often accompanies the failure to file penalty if a return is also late, leading to additional financial burdens. The penalty rate increases over time, adding 0.5% of the unpaid tax each month, up to a maximum of 25%. Addressing this penalty quickly is essential, as the debt continues to grow with both interest and penalties until it’s resolved. We guide clients through their options for satisfying this penalty, whether through payment plans or potential abatements, to prevent further financial strain.
Failure To Deposit Penalty
This penalty is specific to employers who fail to deposit their payroll taxes accurately or on time. These payroll taxes include contributions to Social Security, Medicare, federal income, and federal unemployment taxes. The penalty rate depends on the severity of the infraction and may escalate if the employer misses multiple deadlines or makes incomplete deposits. Employers are generally required to make deposits on a monthly or semi-weekly basis. Missing these deposit schedules or paying incorrect amounts can result in serious financial penalties. Our team assists employers by negotiating with the IRS and exploring solutions to resolve deposit penalties and mitigate any additional charges.
Tax Preparer Penalty
Tax preparers are also subject to penalties for errors on tax returns. The IRS imposes these penalties on preparers who file returns with substantial errors or who knowingly underreport income or inflate deductions and credits. The penalty can impact the client as well, as errors in their return may result in increased taxes, interest, and additional penalties. If clients suspect that their return contains errors due to preparer negligence, we work with them to explore options for rectifying the return and addressing any penalties that may apply. This support allows clients to correct their filings and return to compliance.
6 Steps to Effective Estate Tax Planning
Our Columbia, MD tax lawyer knows that estate tax planning is an essential process for individuals and families who want to preserve their wealth and reduce potential tax burdens on their heirs. Without proper planning, estate taxes can significantly impact the assets you leave behind. At Crepeau Mourges, we work with clients to create customized estate plans that address both immediate needs and long-term goals. We offer 24/7 call answering, so reach out today. Here are six steps to guide the process.
- Determine Your Estate’s Value
The first step in estate tax planning is understanding the total value of your assets. This includes real estate, investments, retirement accounts, life insurance policies, and any other property you own. Knowing your estate’s worth helps determine whether it exceeds the federal or state estate tax exemption thresholds, allowing us to design a strategy tailored to your situation.
- Make Use of the Annual Gift Exclusion
Our Columbia tax lawyer knows that gifting is one of the most effective ways to reduce your taxable estate. The IRS allows you to give up to a certain amount per recipient each year without triggering gift taxes. By transferring assets to your beneficiaries during your lifetime, you lower the overall value of your estate while supporting your loved ones.
- Set Up Trusts for Tax Efficiency
Trusts can play a key role in estate tax planning by helping you manage and distribute assets efficiently. For instance, irrevocable trusts remove assets from your estate, reducing the taxable amount. A credit shelter trust can take advantage of the estate tax exemption for both spouses, while a charitable trust allows you to support a cause you care about while also lowering your estate taxes.
- Plan for the Marital Deduction
The unlimited marital deduction allows you to transfer assets to your spouse tax-free. However, this should be carefully coordinated to maximize the benefits for your estate and your heirs. We help you determine how to use the marital deduction in conjunction with other planning tools, such as trusts, to create a balanced approach.
- Review Your Life Insurance Policies
Life insurance proceeds can increase the value of your taxable estate, but there are ways to structure policies to reduce this impact. Placing life insurance policies in an irrevocable life insurance trust (ILIT) ensures that proceeds are excluded from your estate, providing liquidity to cover taxes or other expenses without adding to your estate’s taxable value.
- Stay Updated on Estate Tax Exemptions
Estate tax laws and exemption limits change frequently. Currently, there is a federal estate tax exemption, but some states impose their own estate or inheritance taxes with lower thresholds. Regularly reviewing your plan in light of these changes ensures it continues to align with your goals.
Columbia Tax Law Statistics
According to the IRS, the agency assesses approximately $73.6 billion in civil penalties each year. It also abates about $50.9 billion of these penalties, resulting in a net collection of about $22.7 billion. While the IRS imposes substantial penalties, a significant portion is later reduced or eliminated, reflecting the agency’s efforts to provide relief to taxpayers under certain circumstances.
To get the best results for your tax situation, make sure you have a Columbia tax lawyer representing you.
Maryland Tax Code and the U.S. Tax Code can look overwhelming to someone unfamiliar with tax laws and regulations. It’s easy to make a mistake, whether you are an individual taxpayer or a commercial one. Not only are these statutes labyrinthine, but they are also subject to annual changes. Even with the best care and attention, though, it’s easy to find yourself in hot water with the IRS or Maryland Department of Revenue. If you have a pressing tax matter or legal action has already been initiated against you, your best defense may be the advice and advocacy of an experienced Columbia, MD, tax lawyer.
Crepeau Mourges is a team of experienced tax litigation and defense attorneys working with individual and corporate taxpayers. Make no mistake—the other side wants their money and has extensive resources to make sure that they get it. You need a powerful ally to defend you—and that’s what we deliver. Our attorneys know how to resolve even the most complicated tax disputes, and we advocate for your best interests. Contact us today for a confidential consultation.
How Can A Columbia Tax Lawyer Help Me?
No matter what kind of tax dispute you have, whether with the Maryland Department of Revenue or the IRS, you deserve skilled legal representation to help you avoid serious financial penalties—or even jail. We get to know you, your goals, and the nature of your tax dispute, then develop a smart strategy to secure the best possible resolution for your matter.
We can also prevent you from being served with legal action. Our firm provides tax preparation services and advice to prevent you from exposure or even accusations of fraud or tax evasion. Our close attention to detail and deep knowledge of applicable tax laws can help reduce your tax burden while avoiding potential pitfalls that could lead to litigation.
Skilled Tax Advice And Support
Do you have a pressing tax matter you need professional advice about? Whether it’s an IRS audit, accusations of fraud, tax evasion, or another matter, we have the skills and knowledge necessary to help you. Our legal team keeps up to date with changes to the U.S. and Maryland tax codes to ensure that you, our client, receive the best possible advice for your situation.
Some of the most common types of tax situations our team can assist with include:
- Achieving a positive outcome to an IRS audit, seeking a settlement that works for you
- IRS audit or decision appeals, representing you in appealing a decision made by the federal tax agency
- Negotiating on your behalf with IRS collections or collections actions taken by the state of Maryland to avoid a negative impact on your credit
- Representing you in criminal tax investigations, building a case to prove that you did not have willful intent to deceive a tax collections agency
Aggressive tax litigation to resolve a tax problem in court. Sometimes, we are unable to achieve the right outcome out of court, but as skilled litigators, we’re confident in our abilities before a judge.
Columbia Tax Law FAQs
Our Columbia, MD tax lawyer knows that falling behind on taxes can feel overwhelming, but there are practical steps to address the situation and move forward. Taking action promptly can help reduce penalties and interest while protecting your financial future. At Crepeau Mourges, we’ve helped many clients get back on track with the IRS and state tax authorities. We tell it like it is and believe that being upfront with each client helps them to understand what steps we need to take and what the outcome will likely be. Below are answers to some common questions about strategies for catching up on taxes and avoiding penalties.
What Should I Do If I Haven’t Filed Taxes For Previous Years?
If you’ve missed filing taxes, the first step is gathering all necessary documents, such as W-2s, 1099s, and deduction records, for the years in question. Filing those returns as soon as possible can help reduce penalties and show the IRS that you’re taking steps to resolve the issue. If you’re unsure how to proceed or if you’re missing records, we can assist by requesting transcripts from the IRS and preparing accurate returns on your behalf.
How Can I Reduce Penalties And Interest On Unpaid Taxes?
As our Columbia tax lawyer can tell you, the IRS charges penalties for late filing, late payment, and interest on unpaid balances. In some cases, you may qualify for penalty abatement, which can reduce or remove penalties if you have a reasonable explanation for falling behind, such as a serious illness or natural disaster. We can help you submit the necessary requests and documentation to make a strong case for abatement. Paying as much of the outstanding balance as possible also reduces interest charges over time.
What Are My Options If I Can’t Pay My Tax Debt In Full?
If paying your full tax debt at once isn’t feasible, there are several options. An installment agreement allows you to pay the balance over time in smaller monthly amounts. For those facing significant financial hardship, an Offer in Compromise may be an option, which could allow you to settle the debt for less than what you owe. We’ll help you determine which option works best for your situation and guide you through the application process.
Will Filing For An Extension Give Me More Time To Pay My Taxes?
An extension gives you additional time to file your tax return, but it does not extend the time to pay taxes owed. Any unpaid balance after the original due date will still accrue penalties and interest. If you anticipate owing taxes but need more time to file, we recommend submitting a payment with the extension request to reduce or eliminate additional charges.
How Can I Avoid Future Tax Penalties?
Avoiding penalties starts with staying organized and meeting deadlines. Keeping detailed records, setting aside funds for estimated taxes, and filing returns on time each year are key steps. For business owners and self-employed individuals, planning for quarterly estimated tax payments is particularly important. We also recommend conducting an annual review of your tax situation to make any necessary adjustments.
Contact Our Columbia Tax Lawyer Today
Addressing past-due taxes doesn’t have to be overwhelming. At Crepeau Mourges, we provide guidance to help you resolve tax issues and take steps to avoid penalties moving forward. We have a combined 40+ years of legal experience, so don’t hesitate to speak with our team. Contact our trusted Columbia tax lawyer today to schedule a consultation and start developing a strategy that protects your financial future.
Client Review
“I have used Brian for several complicated tax issues including the sale of a company and issuance of restricted stock. He is incredibly knowledgeable, thoughtful and professional. I have recommended Brian to several people because of my experience, and in speaking with them they have all experienced the same level of service that I did, which is the best compliment ever.”
John Ferrara
