Tax lawyers in Arizona are always available to answer questions from taxpayers who have problems with their annual taxes. Here are some of the most common questions taxpayers ask when they get a chance to talk to an Arizona tax lawyer.
What are some things that often happen when a tax return isn't filed?
If you don't file your tax returns, it means only one thing: you're in big trouble with the IRS. If you owe taxes to the IRS for, say, ten years, they will figure it all out. They will do everything they can to find you at your old address. In this case, if you moved out of the country and then came back, the IRS would come after you for your taxes for the whole year you were gone.
When this happens, you know for sure one thing. You know that if you don't pay your taxes, you can go to jail. This is against the law and can get you in trouble. IRS will send you reminders with great regularity. At some point, these reminders will stop being friendly, and you'll be shocked to get a Notice of Intent to Levy all your wages and assets.
Does it mean trouble for people who haven't turned in tax returns from a long time ago?
If your unfiled tax returns go back at least six years, it is actually very complicated. The reason is that the files are in storage, and it will take a lot of work to find those records. To get all of the files, an agent will have to look through all of them. You can probably imagine how hard it would be if your unfiled tax returns go back even further.
What does it mean to have your wages taken?
When you hear the word "wage garnishment," it means that a tax is taken out of your paycheck in another way. This method is about how the IRS can get the taxes that a taxpayer owes but hasn't paid yet. When talking about attacks by the IRS, the words "levy" and "garnishment" mean the same thing. The garnishment usually goes after your bank accounts and wages, but the rule can also be used to seize your furniture, equipment, home, vehicles, and other valuable things.
Is it possible for a bank to turn over an account to the IRS without the account holder's permission?
When the IRS puts a levy on your bank account, the bank is required by law to give the IRS the money in your account. It doesn't matter if it's your own money or not or where you got it. You have enough reason to keep those funds in your own account. Most people have direct deposits for Social Security, pensions, child support, and other payments, so it doesn't take the IRS long to figure out where the money came from. When the money is put into an account in your name, it loses its own identity.
When will the bank stop taking money out of this account?
Unlike a garnishment of your wages, a levy on your bank account will only happen once. This means that the next time money goes into your account, it will be all yours again.
