It is a new year, and April 15 will creep up on many Boston residents before they know it. Are you dreading tax day because you have unfiled tax returns that you need to address? You may find that enlisting some assistance could help take the sting out of making up for lost time.
Most people across the country, including many here in Massachusetts, do not want to check their mail and see an envelope from the IRS. Rarely are these letters good news. Instead, they are often notices indicating that something is wrong or that the individuals receiving them are subject to tax audits.
Many Massachusetts residents work outside the country. As such, they can take advantage of certain tax rules to save money, but it requires filing their personal income tax returns in a specific manner. However, without the proper assistance, it could be easy to make mistakes. The IRS may forgive certain inadvertent and/or immaterial errors, but recent tax court litigation could make it more of a challenge to make that claim.
Many people here in Massachusetts and elsewhere are under the impression that once they have a first dealing with the IRS regarding their situations, that is the end of the matter. That is not necessarily the case. It may be possible to initiate tax court litigation.
Like people across the country, many people here in Massachusetts do what they can to avoid paying too much in taxes. Some of them may consult with self-styled financial gurus in order to make that happen. Many times, those consultants end up involving otherwise innocent taxpayers in offshore tax schemes that end up getting them in trouble with the IRS. Many of these foreign bank accounts violate the law.
When the IRS comes knocking and asking questions about your income and the returns you filed, you probably experience a myriad of emotions ranging from shock to anxiety and everything in between just like other Massachusetts residents in your position. One of your primary concerns could be that you will owe so much more in taxes that you will not recover financially. However, that does not have to be the case. Tax audits do not have to result in financial setbacks.
Getting the IRS to change its decision regarding how much a particular Massachusetts resident owes in taxes is not an easy task. The taxpayer must provide compelling reasons for the agency to approve an audit reconsideration request. In order to even get such a request past the first layer of review, it must meet certain criteria.
Massachusetts residents who cannot afford to meet their obligations to the IRS could find themselves facing a variety of repercussions. Two of the possible consequences are federal tax liens and tax levies. Some people use the terms "lien" and "levy" interchangeably, but they are different.
It is not surprising that many Massachusetts residents feel as though the IRS was not fair with them. Some of them are obligated to pay large tax bills with no avenue for relief other than working out a payment plan or some other agreement with the agency. However, others could have valid tax refund claims if the circumstances are right.
April 15 has come and gone. If Massachusetts residents failed to file their income tax returns or file for extensions by this date, they could face consequences if they owe money to the IRS. Unfiled tax returns could lead to substantial penalties and interest, among other things.