Lowrance Law, LLC

What can you do if the IRS audits your tax return and determines you owe more money?  If the amount IRS says you owe is less than $25,000, and you disagree with that determination, you should file an appeal.  

The two most active IRS divisions are the examination and collection functions.  The examination division will audit your tax return and determine if you owe additional tax.  The collection division attempts to collect taxes that you owe the IRS.  In both situations, if you disagree with the IRS, you can file an appeal to the Office of Appeals, see Appeals.  The Appeals mission is to settle tax disagreements without having to go to Court and a formal trial.  The Office of Appeals is independent of any other IRS office and provides a venue where disagreements concerning the application of tax law can be resolved on a fair and impartial basis.

If the IRS audits your return and they make a determination of additioan taxes due.  If the amount involved is less than $25,000, you can utilize the small case request for Appeals Division rather than the more complicated formal written protest.  You can represent yourself if you can adequately explain why you disagree with the IRS findings.  Basically, you send a letter requesting Appeals consideration and explaining the audit changes you do not agree with and the reason you don’t agree.

For specific guidance in preparing a small case request/protest, refer to Form 12203, Request for Appeals Review.

If the IRS determines you owe more than $25,000 in additional tax, you may want to consult with your CPA, accountant or tax attorney.

Bill Lowrance

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Some US citizens who have secret, offshore Swiss bank accounts are hiring attorneys and going to the IRS to disclose the unreported accounts.  All this activity stems from the prior indictment of a UBS bank executive for providing some US citizens with aggressive, advanced tax avoidance (evasion?) schemes.  See prior post Click Here.  Various news accounts report that over 20,000 US citizens have secret Swiss accounts at UBS.  Of course, foreign accounts must be reported when you file your tax return.  Not reporting the foreign accounts is a separate criminal tax violation.

A Reuters story reports that some USB clients are hiring tax lawyers to pursue amnesty using the IRS voluntary disclosure program.  See Reuters Article 

The IRS voluntary disclosure program is a little known method to disclose to the IRS any tax violations so that you can, hopefully, avoid criminal prosecution.  See IRS Disclosure Announcement.  The voluntary disclosure program is utililzed by tax attorneys in assiting clients before a criminal tax investigation starts.  Just so you know, when a Special Agent of the IRS Criminal Investigation Division (CID) knocks on your door, you are in serious trouble.  A “voluntary disclosure” does not automatically guarantee immunity from  prosecution; however, a voluntary disclosure may result in prosecution not being recommended.  This practice does not apply to taxpayers with illegal source income.

 If you have one of the UBS accounts, find a good tax attorney and consider alternatives, including voluntary disclosure, to take before the CID agents come to your door.

Bill Lowrance
Your Virginia Tax Attorney

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Economic Stimulus Act 2008 & Business Tax Benefits

November 13, 2008

The Economic Stimulus Act of 2008 contains two provisions that provide tax benefits for businesses. The first provision increases the limit up to which a business can expense property purchased and placed in service during its 2008 tax year. The second provision provides an additional 50 percent special depreciation allowance for property acquired and placed […]

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Swiss Bank Hands Over US Citizens’ Account Informtion

November 11, 2008

A few months ago, the IRS and US Department of Justice filed a court action against Swiss bank, UBS, the world’s biggest bank to the rich, requesting US citizens secret bank account information.  See Story Here.  UBS has given some information to the Department of Justice and the IRS.  The IRS is looking for secret bank […]

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Juris “Dog”tor Law Degree

November 11, 2008

If you read my website, www.lowrancelaw.com, you know that I am interested in Virginia animal law.  I have two dogs, three cats and a few other creatures.  Attorneys all over the US are developing animal law specialties, but I read this news article today about a dog earning his special dog law degree.  I am […]

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