Business Tax Disputes

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Tax disputes are not uncommon when involving businesses, simply because the tax laws become a bit more complex than an individual's. There are many rules and regulations regarding business tax laws such as correctly classifying a worker. Although the IRS performs audits and investigations on individuals and businesses, they tend to focus more on businesses due to a probable higher inaccuracy rate.
IRS Civil Tax Audits
The IRS is widely known for its audits and investigations of taxpayers. The reason they perform audits is to confirm that the taxpayer's income, information, expenditures, and deductions were accurately reported on their tax return. When the IRS performs an audit they examine income, employment, excise, estate, and/or gift taxes. These audits can sometimes produce added taxes, interest, and/or penalties. On the other hand, it can also produce no changes or a possible refund due to an overpayment in taxes.
Dealing with an IRS audit can prove to be a hectic time for the taxpayer. It is best for the taxpayer to acquire counsel who is experienced in dealing with and negotiating with the IRS. Having counsel represent you will help protect your rights and interests by defending your reporting position.

IRS Criminal Tax Investigations
The IRS has created an investigation department that focuses on examining potential criminal violations of the Internal Revenue Code and any other financial crime such as currency crimes, money laundering, and/or antitrust violations. The agents that work in this department are well-trained in law and in enforcement techniques. This department also has one of the largest conviction rates in federal law enforcement. Taxpayers found guilty of monetary criminal activity can receive fines, penalties, extra taxes, and possible prison sentences.
Tax Penalty Relief
There are plenty of cases where the IRS will apply penalties along with taxes and interest. Situations where various penalties can be assessed along with taxes and interest include:
• Refusing to Pay Taxes
• under Reporting Tax Liabilities
• Fraud
• Participation in a Tax Shelter
• Not Filing a Return
• Falsely Reporting Tax Payer Information
Penalties may be applied to income, employment, excise, estate, and/or gift taxes. General penalties include:

• The Taxpayer's Failure to File Their Tax Return
• the Taxpayer's Failure to Pay Their Taxes
• Falsely Reporting Tax Liabilities
• the Taxpayer Is Involved in Selling Interest in a Tax Shelter
Tax Shelter Investigations
The government has established two types of workers for tax reasons: the two types of workers are employee and independent contractor. It is vital that a company label their workers correctly, as they have different tax responsibilities. Any company that has falsified the classification of their workers such as stating they are independent contractors rather than employees can be issued back taxes, penalties, and/or criminal prosecution.

Additional Legal Resource: For More Information Regarding Business Tax Disputes contact Thorn Law Group for advice.

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