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Taxes

Understanding Tax Penalties

Tax law is an area of law that, like most areas of law, changes constantly. Every year, individuals and companies alike will have new questions about the changes that have been made in tax laws, especially those who face tax debts or don’t have the tax knowledge that an experienced tax lawyer would bring to the table. There’s no denying that tax laws can be scary, and getting something wrong may result in some penalties and fines. Here are examples of tax penalties: Audits A tax audit is where either the IRS or the state reviews tax returns, but both are still extremely limited by what they can do. If you are being audited, you can find out your rights by contacting an attorney. Fines The IRS can legally fine you if any of your tax returns are fake, inaccurate, or not submitted by the deadlines. The fines in and of themselves are small, but they will add up, even if the mistakes you made are honest. Liens Liens are a failure to pay taxes or fines that result in a lien on your property. If you aren’t sure what a lien is, a lien is a way for the IRS to use your property for money that you owe the government (source: immigration attorney). If you continue to fail to pay back your fines, you may eventually lose your property. Here’s the thing, no one is saying that tax laws aren’t scary. They are very complicated and they are ever changing. You may not know your rights or what you did wrong that’s resulting in an audit, fine, or lien. If you find difficulty in keeping up to date with tax laws, one of the best things you can do is hire a tax attorney. It will cost you some money, but it may turn out to be a worthy investment in the long run since you’ll be avoided any of the above penalties that we discussed. With the help of a tax lawyer, you’ll be able to avoid mistakes ranging from miniscule to detrimental. Contact MyRights, your Denver Colorado Immigration Lawyers. They’re have the top immigration attorney in Denver.