Archives: Practices

State Tax Audits

Hanover State and Local Tax Audit Lawyer

Crepeau Mourges regularly advises Marylanders, District of Columbians, Pennsylvanians, and Floridians in audits involving a variety of taxes administered by state and local governments.  We have experience with a broad array of taxes, from sales and use tax, income tax withholding unemployment insurance, admissions and amusement tax, a variety of excise taxes, inheritance/estate taxes, recordation/transfer taxes, corporate taxes, nonresident withholding taxes, and many more.  In addition, we can provide thoughtful counsel regarding delinquent state and local tax filings and payments, related issues and disputes, relief from taxes and penalties, and planning for multistate issues.  Regardless of the venue or the size of the client involved, we strive to ensure appropriate representation when outstanding taxes, state tax audits, or similar issues require thoughtful resolution.

Individuals and businesses alike live in fear of tax audits. Hardworking, law-abiding people might picture a team of state or city tax agents and investigators looking through every bank receipt and financial record with a fine-toothed comb. They worry they could be penalized for even the smallest discrepancy. But often a state or local tax audit is not such a source of trepidation when the process and issues are placed in the proper context and managed by an experienced professional.  Let Crepeau Mourges put our many years of experience and commitment to work for you and we will endeavor to prepare you for success and the minimization of proposed taxes and penalties.

When you are notified of a state or local tax audit, you may not be sure what your next step should be.  For most, this is when they need to contact a tax professional like those at Crepeau Mourges.  We can help those facing an audit to prepare for an inspection of tax and financial documents and to be prepared to answer any questions that government officials might have.  Don’t go it alone.  Even though competent counsel may be expensive, the financial and non-financial costs frequently exceed legal fees.  Crepeau Mourges prides itself on the ability to efficiently identify issues and potential areas of risk and will work to implement a strategy that minimizes the overall impact on an individual or business.

Crepeau Mourges has extensive experience appearing before the administrative agencies and state courts where we practice and we are well-versed in the procedures affecting state tax assessment and collection systems.  We strive to stay current with changes impacting our clients and we understand the diverse and ever-changing tax laws and enforcement policies.  Regardless of the issue our clients face, our background and experience in related areas help us to get up-to-speed on the facts and laws that will bear on strategy.  On top of advocating for you based on our deep knowledge of the legal environment,  Crepeau Mourges will work to ensure that you’re treated fairly, your opinions and concerns are heard, and that you understand the options and attendant benefits and consequences – no matter what issues you are facing.

Why You Need a Tax Audit Attorney

When you receive a notification from the IRS or your state’s Department of Taxation that you are undergoing an audit, the first thought that may come to mind is panic — instead, you should contact a Hanover, MD state and local tax audit lawyer immediately for help. An audit can be a stressful and overwhelming experience, but you don’t have to face it alone. A lawyer can help you navigate the process and protect your rights throughout the audit process. Learn why you might need a tax audit attorney and how they can help you during the audit; then, contact a lawyer at Crepeau Mourges today for help.

You Have an IRS or State Tax Audit Coming Up

If you receive notification that you are being audited by the IRS or a state tax authority, it can be an intimidating experience. You may be unsure of what to do or what rights you have during the audit. This is where a lawyer comes in. The primary job of a state and local tax audit lawyer is to represent your best interests during the audit process. This includes making sure you understand your rights and responsibilities, providing advice on what documents to provide, and advising you on how best to respond to requests from the auditor.

An experienced tax audit lawyer will also help you to develop a strategy for responding to the audit. This may include discussing the auditor’s position and trying to negotiate a favorable resolution. It could also involve raising legal defenses or arguing that the auditor does not have the authority to issue the assessment. Your lawyer can also make sure you are aware of all of your options, such as filing an appeal if you disagree with the findings of the audit.

You’re Under Criminal Investigation for Tax Fraud

If you’re facing a criminal investigation for tax fraud, it’s essential to hire an experienced Hanover state and local tax audit lawyer; a tax attorney can assist you in negotiating the best possible resolution to the case. Tax fraud is a serious offense that can carry substantial fines and prison time. It is important to note that tax fraud does not have to involve intentional wrongdoing or evasion of taxes. Tax fraud can include mistakes or unintentional violations. In these cases, hiring a skilled attorney is essential to reduce penalties and fines.

Tax fraud investigations usually involve a thorough review of your finances and tax filings. The IRS or state department of taxation may question you about specific transactions, examine your books and records, interview witnesses, or audit other documents. An experienced lawyer can ensure that all documents are properly filed, help you understand the laws and regulations in your area, advise you on potential risks, and provide guidance during the process.

You Think You Might Be a Victim of Identity Theft

Identity theft is a serious crime, and if the IRS or your state’s Department of Revenue suspects that you are a victim of identity theft, they may choose to pursue an audit. A tax audit attorney can help you understand how the IRS and state officials investigate identity theft cases. They will be able to advise you on how to respond to an audit and what documents you need to provide in order to prove that you are not a victim of tax fraud. An attorney can also assist in filing for an extension on any taxes due, if necessary.

Contact a Hanover state and local tax audit lawyer today at Crepeau Mourges for help!

Employment Litigation

Hanover Employment Litigation Lawyer

Even the most well-meaning employer is bound to have conflicts with its employees.  Some of these conflicts result from a bitter break-up, others stem from an honest misunderstanding regarding agreements between a business and its employees, and, unfortunately, others result from reckless or intentional wrongdoing by an employer.  Whatever the nature of the issue, Crepeau Mourges is positioned to advise businesses and individuals of their options and, where necessary, to vindicate their rights in a court of law.

Wage and Hour Claims

In recent years, there has been a significant uptick in claims made under federal wage and hour laws and their state counterparts.  Pursuant to the Fair Labor Standards Act (FLSA), employers are required to pay “time and a half” to any non-exempt employees when they work more than 40 hours in a week.  Failure to comply with this federal law, the Maryland Wage and Hour Law (MWHL), and other related state wage and hour laws can result in double or treble damages payable to the employee for all underpayments from the last two or three years.  Making matters worse for employers, plaintiffs’ attorneys are incentivized to fully vindicate their clients’ rights – and sometimes not come to a pre-litigation resolution – because employers are statutorily required to pay reasonable attorneys’ fees incurred by damaged employees.  As a result, a failure to pay an employee for overtime can result in a judgment or monetary settlement costing well in excess of any wage payments that would have been due.  And, furthermore, those employers that engaged in the systematic underpayment of a class of employees, can expect to see a single plaintiff attempt to transform the matter into a consolidated case or a class action.  If this procedure is successful, the case can quickly turn into a matter of life or death for an employer.

At Crepeau Mourges, we are experienced with the procedural framework of these types of matters, have experience in reviewing and analyzing payroll documentation, and have helped many employers resolve substantial potential liability through out-of-court negotiations or favorable in-court settlements.  If your business receives a notice and demand or a confidential settlement communication from a prior or current worker, you should contact an attorney immediately to ensure that can resolve a matter before it quickly escalates.  Contact Crepeau Mourges today to discuss your options.

Wage Payment Claims

Similar to wage and hour claims, there has been a significant recent uptick in claims related to violations of wage payment laws.  Under the federal framework, as well as most related state laws, employers can be held responsible for damages if they fail to comply with minimum wage laws or do not promptly make payments that are due.  Both minimum wage laws and wage and hour violations can occur where a non-exempt employee is wrongfully classified as an independent contractor.  Similarly, where a worker is promised or expects to receive a bonus or other remuneration and an employer attempts to withhold payment as a set off for some other liability or for a host of other reasons, a wage payment claim – which requires that earnings and wages be paid promptly – can quickly arise.  As in the context of wage and hour claims, if this action is systemic and willful, it can result in double or treble damages, the requirement to pay an employee’s attorney’s fees, and can result in other individuals making similar claims under a class action lawsuit.

Crepeau Mourges understands the many regulatory requirements governing the classification of workers, their status as exempt or non-exempt employees, and the penalties that can beset an employer with a claim of noncompliance.  We can also help a business to position a contentious matter in such a way that liability is minimized.  If you have a question regarding your potential exposure to a wage payment claim or related actions, or if you simply want to engage in a due diligence review of your current practices, your business should contact Crepeau Mourges today for a no-cost consultation.

Other Employment Litigation: Wrongful Termination, Discrimination, Enforcement of Non-Competes and Non-Solicitation Agreement, Defending Employee Benefits Claims, and More

Aside from the experience of Crepeau Mourges in matters involving wage litigation, our professionals also have experience advising and defending employers in a host of other actions involving their relationship with their workforce.  In many of these cases, careful planning and advice can help to avoid or minimize unnecessary and expensive litigation.  Proper documentation and substantiation are a must in order to avoid investigation and substantiation after the fact.  The knowledge and experience of the attorneys at Crepeau Mourges have assisted employers to understand and defend their rights in the following types of matters:

• Defending against wrongful termination or discrimination claims
• Enforcement and/or drafting of non-compete agreements
• Enforcement and/or drafting of non-solicitation and non-disclosure agreements
• Defending claims against the business and/or its fiduciaries regarding employee benefits
• Defending against claims related to alleged misclassification of workers

If your business is concerned with potential liability or is facing imminent litigation in any of these matters, contact a professional at Crepeau Mourges to see how we can help you.  We will aid you in defending against alleged employer violations, properly structure future agreements and future conduct to minimize potential exposure, and help you to plan for the continued success of your business.

Crepeau Mourges Can Help You Prepare for an Ever-Changing Workforce

These are but a few of the types of claims that may be brought by an employee against a business or its owners and operators.  As the regulatory environment continues to change, more and more statutory causes of action have been created and/or strengthened.  For instance, changing working conditions have created an environment where discrimination claims, based on disability, age, race, or other conditions, maybe more commonplace and allow litigants to recover attorneys’ fees.  Moreover, the shift to a more mobile economy with stay-at-home employees creates issues relating to the scope of an employment arrangement and when an employee may be considered working (and relatedly creating potential duties and liabilities to the employer).  Many, if not most, management and human resources departments are ill-equipped to deftly adapt to these changes and to ensure compliance with applicable laws.

Accordingly, it is more important than ever to ensure that your business is reacting to these changing market conditions and is prepared to defend its position before a state agency or in a court of law.  Call Crepeau Mourges today to consult about employment-related matters, to ensure that you are prepared to meet changing requirements, and to defend your business from employment-related claims.

Employment Tax and Trust Fund Recovery Penalty

Hanover Employment Tax Issues Lawyer

Employment taxes imposed and collected by the Internal Revenue Service and state taxing authorities differ from most other types of taxes.  Also known as payroll taxes, there are frequently two components: (1) amounts owed by the employer and (2) amounts owed by the employee.  While the amount owed by the employer is collected in a similar manner to other business taxes, the employee’s share is withheld from their wages by the employer.  The employer collects that portion on behalf of the taxing authority and is required to pay it over on behalf of the employee.  That portion – also known as a “trust fund tax” – does not belong to the employer but is instead temporarily held in trust for the taxing authority.  Income tax withholding and one-half of Social Security and Medicare taxes are generally trust fund taxes.  If an employer fails to timely pay employment taxes, there can be serious repercussions for owners or operators of the business, including criminal and civil penalties.  If you or your business have failed to timely file or pay employment taxes, you should contact the professionals at Crepeau Mourges to evaluate your options.

Failure to Pay Trust Fund Taxes

For many labor-intensive businesses, employment taxes can be a significant expense.  During tough times, some businesses look to these payments as a slush fund to pay other expenses; problems can quickly escalate out of control, particularly if business conditions deteriorate.  Due to the size and speed of this increasing problem and since this money is held on behalf of the employee, the Internal Revenue Service considers this a significant problem worthy of significant enforcement efforts.  On top of the manpower and technology used to quickly root out these problems, the Internal Revenue Service and state agencies are armed with significant ability to assess and collect the taxes and associated penalties.

Failure to promptly file and pay employment taxes can result in significant delinquencies.  In addition, unlike other taxes, the Internal Revenue Service assesses an additional penalty for failure to deposit these taxes in a timely manner.  Failure to deposit penalties apply at 2% of the tax for one day of lateness and can increase to 10% more deposits that are 15 days or more late.  When the amounts escalate quickly, the taxing authorities will act quickly to protect its ability to collect by filing a Notice of Federal Tax Lien (“NFTL”).  As a public filing, an NFTL can significantly impair the ability to obtain credit and can exacerbate mounting business problems.  The Internal Revenue Service also acts quickly to identify assets to collect from and can levy on those assets. Many revenue officers are less likely to make collection accommodations related to these taxes – such as by releasing the NFTL or delaying levy action – as they often signal significant impairment of the ability to repay ongoing business expenses.

Trust Fund Recovery Penalty

On top of penalties and more aggressive tactics, employment taxes also have another distinguishing characteristic from most other taxes: a portion can be collected from individuals, not just from the business itself.  In many situations, if there is a significant balance due, revenue officers will examine and try to assess the “trust fund recovery penalty” against those that are responsible.  Anyone actively involved in the payroll process – whether an owner, corporate officer, bookkeeper, manager or otherwise – can quickly become an alternative option to collect the “trust fund taxes” owed to the Internal Revenue Service.  (Most state taxing authorities have analogous mechanisms to collect state-level trust fund taxes, which include withholding taxes and sales and use taxes.)  If assessed with the trust fund recovery penalty, those individuals become jointly and severally liable for the entire amount assessed.  Revenue officers will pursue collection from those individuals with the same vigor as used to collect from the business and can continue with collection action even if the business is dissolved.

If a business falls behind on its employment taxes and is contacted by a revenue officer, competent counsel should be contacted immediately.  The professionals at Crepeau Mourges are focused, capable, and willing to help.  We can advocate on behalf of the business and those involved in order to avoid the assessment of the trust fund recovery penalty.  If those affected have interests adverse to one another, we can adjust our strategy accordingly and can make a referral for other competent counsel.  Frequently, our strategy will involve the demonstration of the operation of the business or that certain individuals did not have control over financial decisions.  We have also avoided assessment of the penalty by showing that certain individuals are not a viable source of collection.  If necessary, we can advise on how to structure future operations or tax payments to minimize collateral damage.  These strategies can help to avoid further aggravating an already bad situation.

Worker Classification

In recent years, the Internal Revenue Service and state taxing authorities have increased their scrutiny of worker classification issues.  Whether done to avoid taxes or not, treating workers as independent contractors rather than as employees can substantially reduce taxes for businesses.  If selected for an employment tax audit – either randomly or after receipt of a Form SS-8 (Determination of Worker Status) from a worker – any worker classification issues will likely be examined.  Even if the employer has a sound basis for the classification, taxing authorities generally presume that an employment arrangement exists or will find enough factors of behavioral or financial “control” to warrant such a finding.  Negative results can result in significant assessments, lead to parallel investigations by other taxing authorities for other taxes, and devastate a business.

Crepeau Mourges has significant experience handling worker classification issues.  We are well-versed in the different tests applied by the various taxing authorities in this context – from the 20-factor test to the “ABC” test, and other control tests.  When issues are identified prior to the audit, we can help to provide an understanding of the tests and employ a strategy to strengthen defense in the event of an audit.  We can also advise on the available compliance programs, such as the Voluntary Classification Settlement Program.  If an audit is imminent, Crepeau Mourges will advocate on your behalf.  Previously, we have successfully argued for complete relief pursuant to Section 530 and have obtained a favorable resolution through the Classification Settlement Program.  Our goal is to not only minimize the impact of the worker classification issue in the context of that particular audit but also to minimize the impact on other potential audits or lawsuits.

Criminal Tax Representation

For those dealing with high-dollar employment tax delinquencies, where “pyramiding” of liabilities may have occurred, where workers are intentionally misclassified, or in similar circumstances, there is a realistic possibility of a criminal tax referral.  Prosecutors have a number of criminal statutes at their disposal, from tax evasion to failure to file, to failure to collect, and others.  These crimes carry significant potential penalties and, since the tax loss generated in employment tax matters is typically high, outcomes frequently are worse than those in income taxes.  Prosecutors highlight the large tax gap caused by these issues and the significant need for a general deterrent effect.

In these types of matters, it is imperative to have a seasoned veteran like those at Crepeau Mourges at your back.  We have represented clients under criminal prosecution in employment tax matters and have achieved favorable results under the circumstances.  As with other criminal tax defenses, we will thoroughly investigate the facts, present viable defenses, and mitigating facts, and advocate for the government to decline prosecution or agree to pursue less significant charges or penalties.

Get Help from a Payroll Tax Attorney

Employment tax problems should not be taken lightly.  If you have such a problem, you should consult with a legal professional experienced in payroll tax matters.  Penalties can increase for those who think going it alone and making costly missteps.  If you own or operate a business in Maryland, Pennsylvania, Washington, D.C., or Florida and you have an employment tax issue, contact Crepeau Mourges to discuss how we can help.  We will work tirelessly to reach a comprehensive solution that meets your satisfaction.

Property Tax Assessments

Hanover Property Tax Assessment Appeals Attorney

Some of the most common ad valorem taxes imposed are real property taxes and personal property taxes.  While not paid at the federal level, in nearly every state and local jurisdiction in the United States, a tax is charged to the owner or user of property based upon some valuation of that property.  Although the rates may appear low, if applied to the fair market value of the property without reduction, these resulting taxes can be significant for both homeowners and businesses.  For businesses owning significant personal property, failure to properly categorize, depreciate, and claim exemptions for this property can result in a significant overpayment.  Many taxpayers are not aware of available procedural rules limiting increases in assessed values and available exemptions.  Worse yet, taxing authorities are quick to try to raise tax rates in times of budget shortfalls and use methodologies that can frequently result in an overvaluation of real estate and personal property.  Crepeau Mourges has the experience you need to ensure that you are minimizing the taxes related to owning real estate and personal property.

Common Issues for Real and Personal Property Taxes

Value-based taxes, such as real property taxes and personal property taxes, are one of the main ways that state and local governments raise revenue for needed government services.  The framework of these taxes varies from place to place, but there are generally a few main factors involved: valuation, classification, available exemptions and phase-ins, and tax rates.  Depending upon the location of the property, there may be a state tax, a county tax, or even a city or town tax.  These taxes are sometimes expressed in percentage rates and, other times, are expressed as millage rates.  Different jurisdictions impose different exemptions based on the type or use of property, the type of owner of the property, the maximum increase permitted from year-to-year, different rates of depreciation, and other factors.  Furthermore, different jurisdictions have different methodologies for the valuation of real property and when new valuations can occur.  Finally, depending upon the jurisdiction and type of property, tax assessments are subject to different administrative appeals and litigation paths at different time intervals.  Crepeau Mourges is well-versed in the various statutory and administrative frameworks and has helped many property owners to qualify for exemptions and to minimize assessments by advocating in both administrative appeals and litigation.

Example: Real Property Taxes in Maryland

In Maryland, real property tax rates range from just under one percent in some counties to over two percent in Baltimore City.  (Personal property taxes are assessed at a different rate, typically much higher than real property taxes.)  Assessments are typically made on a triennial basis and are subject to appeal when re-assessed unless an in-cycle appeal is filed in the interim or a basis for re-assessment exists (e.g., recent sale, construction, or change in zoning).  Assessments are typically made by mass appraisal and are made at fair market value.  Fair market value is usually determined by examining recent comparable sales or by applying a capitalization rate to the income of a commercial property.  Property owners must affirmatively raise and renew the application of exemptions, such as used by a government or non-profit entity or for other statutorily recognized reasons.  To challenge an assessment, the owner of real property must appeal to the Supervisor of Assessments, then to the applicable Property Tax Assessment Appeals Board, and then to the Maryland Tax Court.

How Our Focus and Experience Can Benefit You

While there are many issues that property owners face in this area, Crepeau Mourges is prepared to provide needed insight.  We can help you to plan for and identify available exemptions and explain how additional taxes may phase in over time.  We can explain the classification of real and personal property, how different rates may apply, and how depreciation and other techniques can be used to minimize annual taxes.  Crepeau Mourges can explain the administrative options available in the event that a property tas assessment is made or if conditions warrant making an in-cycle appeal.  Finally, if administrative appeals or litigation benefit a client from a cost-benefit perspective, we will zealously advocate by presenting evidence on valuation, the availability of exemptions, and by using expert witnesses to bolster your case.

The attorneys of Crepeau Mourges set themselves apart from others in this field by combining advanced knowledge of real estate economics, the finer points of valuations and appraisals, and the ability to litigate vigorously for our clients.  We have significantly reduced clients’ yearly taxes by planning, applying for, and preserving exemptions and by successfully litigating for the reduction in assessments.  Call Crepeau Mourges today to find out more about how we can help you to minimize your tax exposure.  Alternative fee arrangements, including flat fees and contingent fees, are available.

5 Reasons To Appeal Your Assessment

Are you unhappy with your property tax assessment and in need of help from a Hanover, MD property tax assessment appeals attorney to appeal your case? If you believe that your assessment is incorrect or too high, then you may want to consider filing an appeal. An experienced property tax assessment appeals attorney can help you understand the process, evaluate your case, and represent your best interests in court. Here are five reasons why hiring an attorney can be beneficial when appealing a property tax assessment; if you want help with an appeal contact an attorney at Crepeau Mourges today!

1) You Think the Assessed Value Is Inaccurate

One of the main reasons to consider a property tax assessment appeals attorney is if you feel that your assessed value is inaccurate. Assessed values are based on market value, and if you feel that yours is too high, it can lead to higher taxes and lower returns. When appealing your assessment, your attorney will look at factors such as the condition of your property, the local market conditions, and how comparable properties have been assessed in the past. Your attorney can make a case to the county tax assessor that your assessed value should be lowered. This could lead to significantly lower taxes and more money in your pocket.

2) The Property Taxes Are Too High

If you believe your property taxes are too high, a Hanover property tax assessment appeals attorney can help. Property taxes are based on the assessed value of the property and the tax rate established by the state. While the assessed value is determined by the county assessor, there can be discrepancies that can result in over payment of taxes. If you feel that your property tax bill is too high, an appeals attorney can help you determine if it is indeed the case. In most cases, a property tax appeal attorney will review all relevant documents related to the assessment, including deed records, sale prices of comparable properties, and other factors that influence the assessed value. With their knowledge of local taxation laws and regulations, they can make a case for you that your property taxes are too high.

3) You Believe the Property Classification Is Incorrect

Every jurisdiction sets its own criteria for how properties should be classified, and it’s possible that yours is being assessed in the wrong category. You may be able to get a reduction in your tax bill if you’re able to prove that the classification is wrong. Your attorney can look into the details of your local tax rules and determine whether or not the classification is accurate. They can then help you build a case that demonstrates why your property should be taxed in a different way. With the right argument, you could be eligible for a lower assessment, which could result in a significant decrease in your overall tax bill.

4) The Tax Bill Was Not Sent to the Current Owner

If you’re a new homeowner, it’s important to remember that you are ultimately responsible for any property taxes due on the property. If you fail to receive a tax bill for whatever reason, it is still your responsibility to stay on top of the payments. It can be incredibly frustrating if the tax bill was sent to the wrong address or never sent out at all. However, the good news is that you can appeal your assessment in this situation. An experienced property tax assessment appeals attorney will be able to help you prove that you did not receive the tax bill. This could reduce the amount of taxes you owe and even prevent any late fees from being added.

5) You Receive a Notice of Sale for Delinquent Taxes

No one wants to receive a Notice of Sale for delinquent taxes. It’s a scary and intimidating prospect that can leave you feeling helpless and overwhelmed. If you receive such a notice, it’s important to know that help is available. The Notice of Sale for delinquent taxes is issued when a property owner has failed to pay their taxes on time. Depending on the state or county where you reside, the delinquency period could be anywhere from 90 days to over a year. Once the notice is sent, the government will give you a certain amount of time to make arrangements to pay the taxes in full, otherwise they will take legal action and put your property up for auction. When facing such a daunting situation, it’s important to turn to a qualified professional for assistance. An experienced Hanover property tax assessment appeals attorney can help you navigate the legal complexities of your situation and provide the best possible outcome; contact one today at Crepeau Mourges.

Tax Collections: Offers in Compromise and Installment Agreements

Hanover Tax Collections lawyer

For individuals and businesses with significant and longstanding tax delinquencies, the threat of potential enforcement actions by the Internal Revenue Service or other taxing authorities can cause significant stress.  If matters are left unresolved, threats can quickly turn into harmful collection actions like the filing of a notice of tax liens, levies on bank accounts, garnishment of wages, and, for the worst offenders, foreclosures of liens on real estate.  These actions can lead to the loss of customers, reductions in revenue, closure of a business, and significant individual financial and legal issues.  But these problems do not have to go unresolved.  Crepeau Mourges has the experience, skills, and focus to help resolve your lingering tax issues and put these issues in the past.  We can deal with these tax agencies on your behalf and negotiate an Offer in Compromise, installment agreement, or other collection alternatives to address these issues. 

First Steps: Stopping Collection Activity

Oftentimes, the tax notices and collections are so overwhelming that a taxpayer does not know where to begin to solve the problems.  Even if they want to address it, they do not know what taxes and penalties are owed, what tax returns have or have not been filed, and who to talk to.  If you are dealing with a situation like this, Crepeau Mourges can quickly identify the issues, work to cease collection activity and get you on the path to success.  

Shortly after being engaged, we can contact the appropriate officials at the taxing authorities to obtain a full history of your tax accounts, any collection activity, and any other issues.  Since all tax returns must be filed in order to obtain a collection alternative, we can obtain the necessary information to prepare accurate tax returns for you or work with your tax preparer.  We will advise of your current and future obligations to ensure that the problem does not needlessly persist.  Sometimes, this involves hiring an outside accountant, finding a payroll services provider, or setting up a system to make required withholding or estimated tax payments.

If collection action has not yet begun, we will explain the different paths to resolving a matter.  This might involve making voluntary payments, waiting for future events to occur, or something else.  If collection action has already begun, we can devise a strategy to temporarily halt this activity so collection alternatives may be considered.  Frequently, we file requests for Collection Due Process (CDP) hearings and Collection Appeal Requests (CAP) in order to slow collection action.  In other circumstances, we can quickly work with taxpayers to prepare requests for Offers in Compromise (OIC), installment agreements, and other related filings, which can also temporarily stop collection action and allow taxpayers to more effectively work to resolve delinquencies.  Fortunately for those actively pursuing resolution, a collection alternative that is pending or finalized will generally terminate any future collection actions, such as levies and garnishments. 

Review of Financial Information and Selection of Collection Alternative

Once collection action has ceased – at least on a temporary basis – the attorneys at Crepeau Mourges will work in an efficient manner to collection necessary financial information and help you to select the best strategy.  The proper path will be guided by a host of considerations from the amount of tax due, the type of tax due, the status of applicable statutes of limitations, prior and potential collection actions, remaining options for administrative appeals, business circumstances and effects on credit, and, perhaps most importantly, your ability to effectively pay these delinquencies over different time horizons.  In order to obtain a collection alternative, taxpayers must present detailed financial statements – e.g., on Form 433-A, Form 433-B, or Form 433-F – in order for the taxing authority to make a determination of “reasonable collection potential.”  Crepeau Mourges will explain what information the taxing authorities require, how collateral effects can be minimized, and can accurately present and substantiate this information.

In addition, we have significant experience in preparing these filings and can effectively maneuver administrative guidance to minimize your “reasonable collection potential” and allow the most affordable collection alternative. We are prepared to advocate on your behalf to defend these positions, whether before an offer examiner, revenue officer, settlement officer, or government attorney.  Once we have documented your collection potential, we work with you to determine eligibility for the various collection alternatives and explain how they can resolve your issues.

Offers in Compromise: A Great Option for Those Experiencing Financial Hardship

For those that qualify, an Offer in Compromise (OIC) can be a great tool to resolve a tax liability.  As its name implies, this method allows for a debt to be compromised (or resolved) in exchange for payment of less than the full amount.  Although an OIC can be pursued based on doubt as to liability or based on exceptional circumstances, the most common Offer in Compromise is based upon a “Doubt as to Collectability.”  Basically, the taxing authority is willing to accept less than the full balance due because there is some risk that it will not be collected in full if it is required to pursue administrative collection.  This gives the taxpayer a clean slate and allows revenue officers to devote their limited resources elsewhere.

To qualify for an Offer in Compromise, a business or individual must be able to document that it cannot pay off the balance within the remaining collection statute of limitations.  This determination is made by filing a complete and substantiated Form 433-A, Form 433-B, or other financial statements, as applicable.  Taxing authorities will review the reported assets and net income to compute a reasonable collection potential.  For the Internal Revenue Service, most of these determinations are made by Offer Examiners in centralized locations to maintain consistency.  Assuming the reasonable collection potential is less than the remaining balance, the Internal Revenue Service allows taxpayers to pursue a Lump Sum Offer or Periodic Payment Offer, which entails different timing and payment options.

Crepeau Mourges has negotiated many complex Offers in Compromise on behalf of its clients.  We understand your business and personal finances and will employ a strategy that works for you.  We also can effectively present, negotiate, and appeal calculations that determine your ability to pay.  Given that the overall success rate for Offers in Compromise is less than 50% and success can save taxpayers significantly, it is often in taxpayers’ best interest to seek out a skilled professional like those at Crepeau Mourges to ensure they are making the most of available procedures.

Installment Agreements: Achieve Tax Compliance and Minimize Related Consequences

If a taxpayer is not eligible for an Offer in Compromise or it is otherwise not feasible, an installment agreement can provide a good solution.  Unlike an OIC, taxpayers are typically eligible for installment agreements regardless of whether or not they can afford to pay the balance due within the statute of limitations.  Furthermore, there are many different types of installment agreements available and they vary based on the type of taxpayer, the amount of tax owed, the amount of financial information provided, and other factors.  The attorneys at Crepeau Mourges have successfully negotiated hundreds of installment agreements, including partial payment installment agreements, Streamlined Installment Agreements, short- and long-term installment agreements, and many other varieties.  If properly structured, an installment agreement can help to resolve outstanding obligations with little collateral consequence to the taxpayer.

Most installment agreements can be negotiated over the phone with representatives of the Internal Revenue Service referred to as the Automated Collection System (ACS).  For relatively low balances due, ACS can determine an appropriate option based on verbal collection information collected from Form 433-F.  Many types of installment agreements can be administered by ACS; however, the Internal Revenue Service frequently changes administrative options and requirements and their authority is subject to change at different numerical thresholds.  Even when a matter can be resolved through ACS, Crepeau Mourges can help to negotiate beneficial terms of installment agreements, including monthly payments, terms, and other conditions (such as if a notice of lien will be filed).

When installment agreements cannot be negotiated over the phone – whether due to a substantial balance, compliance issues, a specific type of installment agreement, or prior assignment to a revenue officer – Crepeau Mourges can help to negotiate the best result for you.  We frequently work with revenue officers and other collection representatives and achieve positive results for our clients.  As with other collection alternatives, we use our advanced knowledge to present your financial situation in a light most favorable to you.  This frequently will result in an acceptable resolution.  

Crepeau Mourges Advocates for Your Best Outcome

That said, if a revenue officer is not following applicable guidance or is acting unreasonably, we will do what is necessary for you.  Depending upon the circumstances, we can use administrative remedies like managerial conferences, Collection Due Process (CDP) hearings, Collection Appeals Requests (CAP), and requests for assistance from the Taxpayer Advocate Service to ensure that procedures and collection standards are followed.  Crepeau Mourges has utilized these policies in the past to achieve the best outcomes for its clients, which have included minimal monthly payments, partial payment installment agreements, avoidance of lien filings, and other favorable outcomes.

Call Crepeau Mourges today to see how we can help you to resolve your outstanding tax issues with a collection alternative.  Aside from our experience with Offers in Compromise and installment agreements, we can work with you to request Currently Not Collectible (CNC) status, abate penalties, obtain innocent spouse relief, remove holds on licenses and passports, and more.  We will hold collection representatives to account, ensure that your rights are preserved and maximized, and help you to move forward with your life.

Don’t Get Stuck with a Tax Bill: 5 Tips from a Collections Lawyer

Tax season can be a stressful time for individuals and businesses alike, especially if you find yourself in the unfortunate situation of owing the IRS, but with the help of a Hanover, MD tax collections lawyer you can avoid problems with the government. The thought of dealing with collections lawyers and mounting fees can be overwhelming. But don’t despair – with the right advice from an experienced professional, you can successfully navigate this tricky terrain. Here are five pieces of advice from a tax collections lawyer to help you avoid getting stuck with a hefty tax bill, but if you do find yourself in trouble, contact an attorney today at Crepeau Mourges.

1) File Your Taxes on Time

Taxes are due by April 15th of each year. Filing your taxes late can result in penalties and interest, so it’s important to make sure you submit them on time. If you’re having difficulty meeting the deadline, consider filing for an extension or contacting a tax professional for help.

2) Pay Your Taxes in Full

When it comes to taxes, the best way to avoid interest and penalties is to pay your taxes in full on time. If you owe taxes, make sure you have enough funds saved to pay the bill in full. When it comes to taxes, the best way to avoid interest and penalties is to pay your taxes in full on time. Filing your taxes late or failing to pay in full can result in hefty fines and interest charges. Therefore, if you owe taxes, make sure you have enough funds saved to pay the bill in full.

If you cannot cover the entire amount due, you should contact the IRS as soon as possible. The IRS offers a variety of payment plan options, depending on your situation. If you can’t afford to pay the entire amount all at once, you may be able to arrange for installment payments. Depending on the amount owed and your financial situation, the IRS may also reduce or waive penalties and interest charges. Regardless of how much you owe, it’s important that you don’t wait to take action. The longer you delay paying your taxes, the more penalties and interest will accrue. Therefore, it’s important that you work with the IRS and a Hanover tax collections lawyer as soon as possible to determine a payment option that works for your budget.

3) Make Estimated Tax Payments

Estimated tax payments are required for those who don’t have taxes taken out of their income regularly, such as freelancers or self-employed individuals. It’s important to make regular payments so you don’t face a large tax bill at the end of the year. The IRS offers helpful guidance on estimated taxes, and you can use their calculators to determine how much you need to pay.

4) Keep Good Records

Maintaining accurate and complete financial records is an important step in avoiding tax problems. Make sure to keep all your receipts, invoices, bank statements, and other documents that show income or expenses related to taxes. This will make it easier for you to prepare your tax return accurately and provide proof of payments or deductions if you’re ever audited by the IRS.

5) Work with a Qualified Tax Professional

Tax laws are complex and it’s important to get help from a qualified tax professional. A qualified tax professional can provide advice on filing taxes, ensure that your taxes are accurate and minimize the amount of taxes you pay. They can also negotiate on your behalf with the IRS if you have unpaid taxes. Working with a professional is the best way to get the most accurate advice and ensure your taxes are in order.

If you need help, contact a Hanover tax collections lawyer at Crepeau Mourges today.

Business Litigation

Hanover Business Litigation Lawyer

Legal conflicts are expensive and can be destructive to the operations of a business. Whether a matter involves a dispute with the government, a competitor, a former partner, or an employee, the attorneys at Crepeau Mourges understand the importance of efficiently resolving disputes to minimize financial costs, a potential breakdown in relations between stakeholders, and disruption to the business. Our advice and strategy are built upon a strong understanding of the law, your business, and your goals. The reputation of Crepeau Mourges has been forged from our practical, comprehensive, and zealous representation of clients in high-stakes business matters.

At Crepeau Mourges, we are prepared to provide needed counsel to businesses, owners, and employees involved in these significant conflicts. We represent both plaintiffs and defendants in complex matters involving disputes between business competitors and partners, contract litigation and commercial tort claims, corporate dissolution matters, enforcement of non-compete and non-solicitation agreements with employees, wrongful termination and discrimination claims, wage claims, torts related to failure to exercise fiduciary duties and professional liability, franchise litigation, and disputes between owners, to name a few. We also focus on providing skilled defense for businesses and individuals faced with examinations or litigation against the Internal Revenue Service, Department of Justice, Department of Homeland Security, United States Department of Labor, Securities and Exchange Commission, and related federal and state regulatory agencies.

Unlike some firms, we pride ourselves on our ability to understand your needs and work to achieve the best result from a holistic standpoint. In many cases, we can effectively manage a matter to avoid litigation altogether by working with opposing counsel and using alternative dispute resolution practices. We have a firm grounding in the many options available to resolve business disputes, and we draw on that background in forming a strategy. Even when litigation cannot be avoided – whether because of the high stakes, the parties’ hostility, or for other reasons – Crepeau Mourges is focused on achieving a resolution that benefits you. Where the situation dictates, we will pursue all available legal and equitable relief, including injunctive relief. The attorneys of Crepeau Mourges also have significant experience in motion practice and trial strategies that have benefited clients in federal and state courts.

Whether you have received a legal complaint, formal demand, notice of investigation, or need advice regarding an ongoing business dispute, you should contact the advisors at Crepeau Mourges to discuss your options. We can put the issues in context and devise a strategy to achieve your goals and protect your financial future. Contact Crepeau Mourges today to see how our unique focus and experience can benefit you.

Managing Business Disputes

Our business litigation lawyer in Hanover, MD, knows that starting a business is rewarding, but it also can result in trials and tribulations if not adequately handled. When business owners do not take the proper steps to protect themselves, it’s possible to face business disputes that can profoundly impact the business’s health. Business owners are at risk of facing litigation that can drain a business’s finances and may take owners away from their primary business objectives. Our team at Crepeau Mourges has represented business owners who may find themselves managing litigation as a result of the following:

• Employment Discrimination
• Disputes Among Partners
• Civil Claims
• Infringement Upon Intellectual Property
• Breach of Contracts
• Tax Issues
• Shareholder Disputes
• Claims of Professional Negligence

Business owners should rely on the insight of experienced attorneys from the very start of forming their business to avoid legal entanglements. While a lawyer can help prevent issues down the road, they can also play a critical role in managing problems should they arise. With representation, business owners can have the protection they require when they need it the most. 

Determining Whether to Move Forward with Litigation

It’s best to rely upon the experience of a Hanover, Maryland business litigation lawyer for guidance on how best to move forward when experiencing potential legal issues. Litigation can be both costly and time-consuming, and because of this, moving towards taking this step should be one of the last considerations. Before taking this route, it would be prudent to attempt to reach resolutions through negotiations. It may be possible to resolve problems before they become a more significant issues. At times, it may be necessary to move towards litigation in hopes that business owners and their opponents can reach an agreeable resolution for all parties. Knowing how to move forward can be complicated, and it will be necessary to weigh options carefully and have an understanding of the process ahead should litigation be the appropriate way to move forward: 

Consultation with a Lawyer

Most business owners will already have retained the services of a lawyer but, if they have not, it’s essential to speak with a qualified business lawyer as quickly as possible. They will work closely with you to understand the details of the dispute to determine the best way to move forward. It’s best to prepare for the first meeting by bringing all documentation relevant to the case. 

The Negotiation Process

As mentioned, before moving towards court proceedings, it’s best to attempt to negotiate a possible resolution- if at all possible. Not only does this save time for all parties involved, but it can also save substantial amounts of money. A lawyer will negotiate a potential resolution to avoid the issue escalating to litigation. In some situations, it may be possible to reach an agreement and avoid costly litigation down the road. 

Proceeding with Trial

When negotiations and mediation efforts are fruitless, the case may proceed to trial. At this point, the outcome is no longer in the hands of the parties but the court. A judge or jury will hear evidence presented and arguments made by prospective lawyers and ultimately decide the outcome. 

It’s Important Not to Delay

Owning a business can come with many rewards, but risks are also associated with this. Lawyers can assist in business planning to reduce problems from arising. However, despite this, it’s still possible to experience legal issues, and having a law firm like Crepeau Mourges is an investment worth making. Whether you are a business owner in the process of forming a business, currently running a business, or are facing legal issues working with a reputable law firm will be imperative. Don’t wait- schedule a consultation with a Hanover, MD, business litigation lawyer to learn more about our services. 

Internal Investigations

Hanover Government Audits and Internal Investigations Attorneys 

Even for the most effectively run businesses, it is difficult to completely eliminate misconduct and fraud.  In today’s political and social climate and with increased calls for information and transparency, the need for strong internal controls and reviews continually grows.  But not even the most rigorous controls, extensive oversight, or strong management can prevent all unexpected problems – as can be seen from recent events.  Crepeau Mourges understands this and can help your business prepare for the worst – whether through proactive investigation or through zealous advocacy in an investigation or litigation.

In recent years, small and large businesses have been targeted by both internal and external whistleblowers looking to cause problems, force business changes, or to receive a payout.  Additional public disclosures from companies have given ammunition for investors and class action attorneys to initiate derivative actions against corporations for even the slightest misdeeds.  Employee discrimination, harassment, and other misconduct have caused problems for board members – even when the issues were thought to have been thoroughly resolved.  And finally, an increased call for oversight of certain industries and programs have resulted in expanding government investigations, large financial settlements, and, in some cases, even criminal litigation.  Crepeau Mourges has wide-ranging experience handling pre-litigation internal investigations, representing clients in governmental audits, and adeptly representing clients faced with litigation.

If a business has discovered some level of wrongdoing, has been contacted by a government agency, has received notification of litigation, or is concerned with potential misconduct, the attorneys at Crepeau Mourges can provide value and limit the financial exposure of the business and its stakeholders.  When a company does not properly conduct its affairs and fulfill its obligations to shareholders, the entity, its board members, officers, and other employees could face the following consequences:

• Civil and criminal liabilities, involving both financial penalties and incarceration, for specific acts and omissions under a host of regulatory frameworks
• Potential derivative suits claiming a breach of fiduciary duties by officers, directors, and employees seeking discharge of those individuals or significant financial consequences or restraints related to these individuals
• Increased public scrutiny resulting in a loss in trust, goodwill, and value of the business
• Government investigations and litigation that can result in the disclosure of confidential and proprietary information in the public sphere
• Potential for expensive and drawn-out litigation attracting negative publicity
• Remediation of perceived misconduct or wrongdoing requiring implementation of burdensome additional safeguards and internal controls

With early intervention, the attorneys at Crepeau Mourges can explain the legal environment, consider business conditions, and work with stakeholders to direct and advocate for a favorable resolution.  The background and experience of Crepeau Mourges provide a unique ability to advise our clients and explain our comprehensive strategy.  Unlike other firms, we have experience handling complicated forensic accounting engagements, providing litigation support to other advisors, and working with experts and consultants in administrative investigations and litigation.  We have handled matters involving derivative litigation, matters involving resolution of improprieties through proactive voluntary disclosures and private settlements, matters involving forensic accounting to expose misconduct and mitigate corporate liability, and government audits conducted by the Internal Revenue Service, Federal Bureau of Investigations, Department of Labor, Department of Homeland Security, and others.

Our focus in this area allows us to effectively conduct the extensive fact-finding involved – including selecting experts and conducting investigative interviews – and to ensure that all actions are appropriately documented.  We understand the wide-ranging legal issues and business considerations and advise stakeholders on their legal responsibilities – all while working to maintain attorney-client privilege and confidentiality over business matters and property.  Crepeau Mourges is prepared to protect and fight for you against claims by the government, whistleblowers, and other litigants.  We are there for you until the end and will see that post-resolution requirements and other safeguards are properly implemented to avoid future problems.  Call Crepeau Mourges today to discuss how we can help to manage these problems and ensure the future success of your business.

How an Attorney Can Protect Your Business During an Audit

Going through a government audit or internal investigation can be a stressful and challenging process for any business, but you do not have to go it alone when you work with Hanover, MD government audits and internal investigations attorneys on your case. Not only can it be disruptive to daily operations, but there is also a risk of fines and other penalties if mistakes are made. However, having an experienced attorney on your side to help you navigate the process can help ensure that your business is properly protected and that any issues are addressed in the most efficient way possible. If you are facing an audit, contact a lawyer today at Crepeau Mourges.

What Is an Audit?

An audit is an independent, objective examination and evaluation of financial records, operational activities, internal controls, and compliance with applicable laws and regulations. Audits provide an assurance that the reviewed financial statements are in compliance with established standards, such as Generally Accepted Accounting Principles (GAAP). Audits are typically conducted by external auditors, such as Certified Public Accountants (CPAs) or internal auditors. Audits can be conducted on any type of business entity, ranging from a sole proprietorship to a publicly traded company. During the course of the audit, the auditor will review documents, such as financial statements, contracts, and policies, and interview personnel to evaluate the accuracy and completeness of the records and activities being audited. The auditor will then issue a report summarizing the results of their audit.

Types of Audits

Audits come in many forms, and can be conducted by either governmental or private entities. The type of audit that is conducted depends on the nature of the business, the size of the business, and the purpose of the audit. According to Hanover government audits and internal investigations attorneys , audits can be divided into three categories: financial audits, compliance audits, and operational audits.

• Financial Audits: Financial audits are conducted to ensure that a company is accurately reporting their financial information to external stakeholders. During a financial audit, an auditor will review the company’s financial documents and records to verify accuracy and completeness. Financial audits can be conducted by either a governmental entity, such as the IRS, or by a third-party private auditing firm.
• Compliance Audits: Compliance audits are conducted to ensure that a company is following all applicable laws and regulations. This type of audit is typically performed by a governmental entity such as the EPA or OSHA. During a compliance audit, the auditor will review policies, procedures, and other documents to ensure that the company is following all relevant rules and regulations.
• Operational Audits: Operational audits are conducted to evaluate the effectiveness of a company’s operations. During an operational audit, an auditor will review processes, procedures, and records to identify any areas of inefficiency or mismanagement. This type of audit can be conducted by either a governmental entity or a third-party auditing firm.

How an Attorney Can Help

Having an attorney to represent your business during a government audit or internal investigation can provide invaluable protection. Not only can they help protect your rights and advise you on the best course of action, they also offer a measure of assurance that you’re taking all necessary steps to comply with the law. They’ll be able to prepare you for the audit, explain the process to you and answer any questions you may have. Additionally, they can advise you on what documents and records need to be provided during the audit, as well as how to properly maintain records and documents. Furthermore, they’ll be able to represent you during meetings with auditors, as well as any interviews that may take place.

If any discrepancies or issues arise during the audit, your attorney will be able to provide guidance and advice on how to address them. They can also help you come up with a plan of action for rectifying any potential issues and ensure that you’re in compliance with the law. If you are facing an audit, contact some Hanover government audits and internal investigations attorneys at Crepeau Mourges today.

Tax Litigation

Aenean auctor wisi et urna. Aliquam erat volutpat. Duis ac turpis. Integer rutrum ante eu lacus. Vestibulum libero nisl.

IRS Tax Audits

Mauris fermentum dictum magna. Sed laoreet aliquam leo. Ut tellus dolor, elementum vel, cursus eleifend, elit.