IRS and New Jersey Tax Resolution
If you live in New Jersey and have been charged with owing back taxes or you are facing other tax-related charges by the Internal Revenue Service (IRS) or the New Jersey Division of Taxation, you should take it seriously. Anyone can find themselves in this situation. The loss of a job, a divorce, the death of a spouse, or medical expenses are just a few of the reasons why someone could fall behind on their taxes. It is a common problem, but it is one you must deal with immediately.
Here is What Can Happen if You Ignore a Tax Notice:
Interest and tax penalties could be added to your past-due bill
- A tax lien could be applied, preventing you from selling or refinancing loans
- Your credit can be damaged for years to come
- Your paycheck could be garnished
- A tax levy could be imposed on your assets, and the IRS could seize and sell your home, car, or other property
While the above actions can be frightening, you might want to avoid talking to the IRS or the New Jersey Division of Taxation on your own, because anything you say to them can be used against you. However, Marlton IRS tax problem lawyers have studied tax law in depth, and their knowledge is up to date on any changes in the tax code. Your attorney can handle all the complicated paperwork and frustrating calls to the IRS and the New Jersey Division of Taxation, and come up with the best solution for your problem.
Solutions to Tax Problems in New Jersey
- Installment Agreement: We can help you create an installment plan based on your assets and income.
- File or Amend Past Tax Return: You may be able to file an amended return or file a return after the deadline if one was never filed.
- Offer in Compromise (Form 656): We can negotiate your tax debt based on assets and income and make an offer based on federal guidelines.
- Penalty Abatement: If there was a reasonable cause for your failure to pay, we may be able to have the IRS to abate the penalties. Reasons may include job loss, illness, and others.
- Chapter 7 Bankruptcy: If you meet specific requirements, you may be able to discharge your tax debt.
- Currently Not Collectible: This is a temporary solution for tax payers whose expenses exceed their income.
- Innocent Spouse Relief: This applies when one spouse on a joint return is assessed additional tax based on erroneous filing by the other spouse, which may unburden the innocent spouse of the debt.
- Closing Statements (Form NJ 906): When taxes are owed to the New Jersey Division of Taxation, they may be negotiated and penalties, costs of collection, and recovery fees may be waived.
A Marlton Tax Problem Lawyer Can Determine Your True Tax Liability
One of the most important steps in determining your debt is to confirm that it was correctly calculated by the IRS or the New Jersey Division of Taxation in the first place. Just as tax filers and tax professionals make mistakes, so too does the IRS and New Jersey Division of Taxation. However, you must promptly determine and notify the taxing authority of the miscalculation. For example, if a taxpayer believes that an IRS notice was issued in error, they must dispute the allegation within 30 days by filing Form 12203 or by preparing a brief written statement. A Marlton tax lawyer can assist with this process and help make the case that the tax calculation by the IRS or the New Jersey Division of Taxation was incorrect.
Can’t Pay Your New Jersey State Taxes?
If you find that you can’t pay your New Jersey state taxes, we can help you prepare the appropriate paperwork, whether you are filing as an individual or as a New Jersey business owner. We can also assist you with Closing Statements (Form NJ 906), which may reduce the overall penalties, costs of collection, and recovery fees that are owed.
Did You Miss the Deadline?
When filing late federal tax returns, taxpayers must request a six-month extension with Form 4868. When filing late state tax returns, taxpayers must file a Form NJ 630. New Jersey tax problem lawyers can help draft these forms to minimize the penalty. Failing to file the request for an extension on time can lead to a forfeiture of any income tax return a taxpayer would have otherwise been entitled to.