Every year, thousands of Texas residents are targeted by audits for failing to file tax returns or make payments as required by the Internal Revenue Service. Many of these individuals do not withhold their return in order to hide their assets or skirt their liabilities, but rather succumb to the paralyzing fear and intimidation that often accompanies an order from the IRS. An audit can result in serious penalties, such as high interest rates, bank account levies and wage garnishment.
Many citizens of Texas panic as tax season approaches, unsure of their own abilities to file their taxes and fend off the IRS for another year. Some may even spend hours ensuring their filings are accurate, only to find out that the IRS disagrees. However, there exist numerous resources designed to ease the process of paying one’s federal income tax, most prominently found in the form of certified tax preparers, accountants and financial advisors.
For those who already face an audit, tax law attorneys can help them protect their rights and avoid serious punishment. Of course, quality legal representation is crucial for individuals already targeted by an audit fraud case.
Confused taxpayers may designate another person to represent them and make important decisions regarding the filing and paying of their federal income taxes by completing an IRS Form 2848 Power of Attorney and sending it to the tax agency. Couples filing joint returns must each fill out and submit their own Power of Attorney forms.
Texas residents who owe money to the IRS but are unsure of how to best proceed can submit an IRS Form 8821 Tax Information Authorization, effectively giving another party the ability to collect information on their behalf. This can be useful for individuals who wish to discover whether they are being target by the IRS’s collections department but still wish to make all important decisions themselves.
Fox Business, “Don’t Want to Deal With the IRS? You Don’t Have to” Bonnie Lee, Sep. 26, 2013