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 a reliable tax lawyer in Columbia, MD 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!
Why Work with a Tax Attorney
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.
At Crepeau Mourges, we’re committed to helping clients understand these tax penalties and work toward resolutions that meet their needs. If you’re in Columbia, MD, and need assistance with a tax issue, contact us today to discuss your situation and explore your options.
Why you should choose a tax lawyer in Columbia, MD
If you are a small business owner, then you know how important it is to be up-to-date on the latest tax laws. Not only will this help your business run more efficiently and profitably, but it can also save you from costly fines. For example, if you fail to withhold enough taxes from employee paychecks or remit them to the IRS on time, your company could face serious consequences like criminal charges and large fines. Luckily for businesses, there’s a qualified tax lawyer in Columbia MD that they can turn to for help with their complicated tax matters.
At Crepeau Mourges, our tax attorneys handles all of their client’s needs so they don’t have to worry about anything other than running their company. You can trust us to handle your case with care because we know how stressful it is when your finances are on the line.
We will do everything possible to ensure that our clients get the results they deserve so they can move forward without any stress or worry about their future. It’s important that our clients feel comfortable throughout this process so we take every step necessary to make sure they understand what is going on at all times. That way there won’t be any surprises along the way!
Call us now to schedule your free case review!
