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Are You Facing Tax Collections? | Why You Should Contact an Attorney

Common Law PC Feb. 21, 2023

Don’t Ignore Tax Collections

The worst mistake anyone can make when it comes to tax collection is to ignore it. The worst part of the issue is not the audit or the original tax amount itself. Instead, the penalties and interest that can start to add up are the worst problems. Not only do both of these elements compound very quickly, they can easily become more than the original amount owed. Additionally, the IRS or similar government tax agency has a broad range of tools that can be used for collection. That can include everything from wage and payment garnishment to property seizure and forfeiture. In short, the government has tremendous power to take a person’s income and assets and use them to satisfy the tax debt owed.

When you’re dealing with tax collection in Utah, the first thing you want to do is to speak with a good Utah tax attorney. Solid representation can help you find an early resolution, stop tax collection efforts in their tracks, help ensure you only pay what you actually owe, and move the matter into court if needed, versus just moving like a runaway train through your financial life. You don’t have to be a statistic of what a tax agency can do with collections. 

Common Law can help. Our team, led by Mike Black, regularly represents clients with the IRS, state tax agencies, and similar. You don’t need to take on the government alone, and you definitely don’t need to see your life turned upside down by the power of tax agency regulatory enforcement. Call us to schedule an initial consultation and Common Law can easily provide you the most effective options available for your specific tax situation. You’ll likely be surprised by what’s possible, and that your tax problem doesn’t have to mean financial ruin. However, don’t wait; the longer you take to start fixing your problem, the worse your tax problem can become.

Common Questions About Tax Litigation

Late filings and erroneous tax information can attract penalties, fines, interest, and tough collection action from taxing authorities. Tax litigation broadly describes the practice of resolving these tax disputes with local, state, federal, and foreign tax authorities through the court system. Our Utah tax attorney discusses the two most common questions about tax litigation.

What’s the Difference Between Tax Avoidance and Tax Evasion?

Tax avoidance occurs when you use legal methods to minimize and lower your tax bills. Nearly 72.5 million households use some form of tax avoidance to cut down on how much they owe to the IRS legitimately and legally. You can take advantage of tax avoidance through various deductions, exclusions, credits, and strategies like:

  • Giving assets to your kids before you die to avoid certain estate taxes.

  • Timing when you sell assets or engage in other transactions to push income into later years or trigger deductions in the current year.

  • Maximizing tax deferral strategies provided by Congress, such as retirement plans and the like.

On the other hand, tax evasion occurs when you escape paying taxes by hiding the true state of your affairs from tax authorities. Tax evasion can include:

  • Over-claiming expenses

  • Hiding income from tax authorities

  •  Engaging in illegitimate tax shelter transactions.

Can Social Media Expose Tax Frauds? 

If you are aggressive in trying to reduce your taxes, you might want to be careful what you post.  Tax authorities might be watching your social media. Twitter, Instagram, and Facebook have all become areas where people post detail about their lifestyles: work successes, vacation photos, buying a new car, house, or other cool stuff.

Such information is likely available to tax authorities,  especially if your tax returns have raised any red flags. Of course, social media isn’t the only information that taxing authorities use, as they can get public records, shared state records, other electronic information, and banking and other financial information under certain circumstances.

Talk to a Qualified Tax Attorney Today 

Our Utah tax attorney can help you face any tax fraud issues. At Common Law PC in Salt Lake City, we provide our knowledge, talent, and experience to help you navigate every level of the tax dispute cycle. This helps you save money and time. Contact us today to schedule your consultation.