Are you behind on your federal taxes? If so, addressing your situation proactively is a much better option than waiting for the Internal Revenue Service (IRS) to come knocking. Depending on your current circumstances, you could potentially have a handful of different options available, one of which is to submit an offer in compromise. Here, Virginia tax defense attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, outlines five important considerations for deciding whether to submit an offer in compromise to the IRS.

The Internal Revenue Service (IRS) has announced the new federal income tax brackets, exemptions and deduction limits for 2021. The new inflation-based figures take effect for the 2021 tax year, meaning that they will impact U.S. taxpayers’ April 2022 returns. Here, Virginia tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, provides a rundown of some of the most-significant changes.

As a U.S. taxpayer, it is up to you to make sure you meet your obligations to the Internal Revenue Service (IRS) on time. This includes not only paying what you owe but making all requisite filings as well—even if they do not come with tax liability attached. If you fall behind on your federal tax obligations, using one of the IRS' “voluntary compliance” options can help mitigate your exposure; however, you need to be extremely careful in order to avoid increasing your risk of prosecution and penalization. With this in mind, it is important to work with an experienced Virginia tax attorney to decide on your best path forward.

The Internal Revenue Service (IRS) has distributed another round of warning letters to U.S. taxpayers with Bitcoin and other cryptocurrency holdings. This follows a similar initiative last year. The letters, dated August 14, 2020, are identified as Letter 6173, Letter 6174 and Letter 6174-A. If you have received one of these letters from the IRS, it is important that you speak with a Virginia tax defense attorney promptly.

If you owe money to the Internal Revenue Service (IRS), you have options available for mitigating your liability and reducing your risk of criminal prosecution. However, in order to take advantage of these options, you may need to act quickly, and it will be important to make informed decisions based on the advice of an experienced Virginia IRS voluntary disclosure lawyer.