A tax lawyer is very important to taxpayers struggling with tax-related debt. In most cases, having a tax lawyer makes an incredible difference in dealing with the burden of back taxes. With a tax lawyer on one’s side, it is much easier to approach the IRS for compromises and other methods to pay off taxes. Without a tax lawyer, one may be clueless to the large amount of options that are available. There are many reasons why hiring a tax lawyer is an important step in getting rid of back taxes. One way to help prove that a tax lawyer provides effective tools to fight against the IRS is to give examples. Since celebrities are often involved in high-profile cases, they provide exceptional examples regarding the effectiveness of a tax lawyer. Note that some of these celebrities were in serious debt with the IRS due to a negligence of taxes. However, with the help of a tax lawyer, they were able to reduce their respective burdens. In each of these cases, a tax lawyer provided significant benefits to the client. Even though some of these cases dealt with thousands, if not millions, of dollars, celebrities were still able to manage their finances with the help of a tax lawyer.
Basic Tax Definitions
First of all, however, it is important to get acquainted with basic definitions regarding taxation, the IRS, and tax lawyers. Every individual is expected to pay taxes in exchange for public government services such as schools and transportation. When an individual neglects to pay taxes, they start to have back taxes. Since fees and interest rates accompany back taxes, it is important to talk to a tax lawyer whenever IRS notices come in the mail. The sooner this is taken care of, the better. If one neglects their back taxes, the IRS can take action. After several notices, the IRS will issue a tax lien. A tax lien is a final warning that gives the title of personal property to the government. This is when a tax lawyer is absolutely necessary for resolution. If a tax lien is neglected, the government will issue a tax levy. After a tax levy is issued, the government can take away personal property. Usually, individuals will consult with a tax lawyer in order to prevent such drastic action.There are ways around these consequences. A tax lawyer specializes in finding alternatives for those who are in debt. Since tax liens and tax levies affect credit scores and other important items, having a tax lawyer is necessary. They can successfully submit an offer in compromise. On top of that, tax lawyers are experienced and know what to do in order to make the IRS happy with required documents. In essence, the goal of a tax lawyer is to provide maximum benefits to his or her client. This means that the client might give up more than they want to in order to satisfy the requirements of the IRS. However, with a tax lawyer at their side, the client’s position would always be improved. A tax lawyer will always lead to a stronger case, which in turn will lead to a greater benefit.
Most of these examples will show how a tax lawyer provided benefit to a celebrity. However, in many of these cases, the celebrity neglected their taxes. All of their problems regarding taxes could have been solved if they had merely paid their taxes promptly. It is not okay to just wait to pay taxes, especially when dealing with a large sum of money. For those who have neglected taxes, a tax lawyer can help taxpayers make everything right. The best way to get rid of taxes, of course, is to just pay them. But a tax lawyer can help those who are not in a position to pay for all of their back taxes.
The $2.2 Million Tax Lien
One celebrity who turned to a qualified tax lawyer for help was Dionne Warwick. For those who don’t know, Warwick is a singer who was popular in the 1960s for songs such as “Walk On By”. The tax lawyer that Warwick contacted successfully made a case for Warwick and saved her an incredible amount of money. Without the tax lawyer, Warwick may have had to pay a large sum. It all started when Dionne Warwick neglected some of her taxes. The IRS issued a $2.2 million lean on her property in order to compensate for the amount that had not been paid. Warwick believed that this was in error, so she contacted a tax lawyer. The tax lawyer looked into the case. The tax lien had been issued in 2009 for unpaid taxes dating back to around 1990. After collecting various details, the tax lawyer prepared a case to present to the IRS.
An Accounting Error
The tax lawyer determined that the amount was incorrect and brought it to the attention of the IRS. Once the IRS realized that they had incorrectly calculated the amount for the tax lien, it made the proper adjustments. The tax lawyer returned to Warwick with good news: approximately $1.2 million of tax debt had gone away. She would not have to worry about half of the tax lien.The IRS cited an accounting error as the reason Dionne Warwick had been charged with so much. This proves that the government is not always accurate. A tax lawyer can thoroughly review records and determine whether the IRS has overlooked anything. Usually, a tax lawyer can catch things that the individual would not have caught on their own. Interestingly enough, the IRS apologized for the incorrect amount. In other words, the use of a tax lawyer prompted a case that was so strong that the IRS publicly apologized.
Warwick was still responsible for approximately $1 million of her tax lien. It is important to note that a tax lawyer cannot simply get rid of unpaid taxes. A tax lawyer can provide other options that help an individual, but the IRS must eventually be paid. At this point, Warwick had several options. She probably consulted with her tax lawyer to figure out which option was best for her situation. Even when the IRS determines that the correct amount has been charged, a tax lawyer can point an individual in a direction that produces a reasonable plan for the payment of their back taxes.
Nicolas Cage is another classic example of how a tax lawyer can be effective. Cage is famous for his appearances in movies such as Leaving Las Vegas and Adaption. Lately, however, he has been taking less ambitious roles. Cage has also been less ambitious when dealing with his taxes, which led to various consequences. During the first decade of the twenty-first century, he neglected to pay a significant portion of his taxes. He eventually had to hire a tax lawyer to help with expenses. It is worth noting that several negative elements contributed to Cage’s debt. Considering his large salary, one would think that it would be very difficult for a man of his position to be in debt with the IRS. However, due to his spending activities, Cage accumulated a large amount of taxes that could not be paid off right away. With the help of a tax lawyer, Cage started working on paying for his taxes.
A tax lawyer helped redirect Cage from negative spending. Many individuals are victim to negative spending habits in the same way that Cage was. He purchased homes in areas that he did not frequently visit. He was not careful with his money. He made mistakes with his tax returns. He did not report some of his income and inappropriately deducted some expenses. The tax lawyer picked up on these facts quickly and assisted him with taking care of it. Another unfortunate habit Cage developed, which required the eventual assistance of a tax lawyer, was that he did not set aside a portion of his earnings for taxes. In spite of receiving a large sum of money for appearing in a variety of different films, Cage failed to pay the IRS for taxes. It is very fortunate that Cage found a tax lawyer to assist him. It is easy to make the same mistakes that Nic Cage did. It is indeed tempting to spend money that one should not be spending. One must do everything they can to avoid this temptation. Unfortunately, many people are already in debt because they could not control spending. A tax lawyer is trained to help all individuals, even those who have been irresponsible with finances.
Of course, the IRS eventually caught up to Cage’s activities and demanded payment. In 2008 the IRS evaluated Cage for his activities from the early 2000s. Eventually it was determined that Cage owed $1.8 million in back taxes. Even though his business managers attempted to help explain Cage’s expenditures to the IRS, Cage needed the help of a tax lawyer. He knew that he had a significant advantage if he had a tax lawyer. Business managers attempted to justify Cage’s deductions and calculations on his tax returns. Cage would not have been successful with presenting this information. The business managers did not consider all options in the way a tax lawyer would. If Cage had not hired a tax lawyer, this case would probably not have a happy ending.
The tax lawyer looked through the tax returns and IRS documents for errors. It is important to note here that a tax lawyer is especially useful for verification. As stated before, Warwick’s case was won partially due to the tax lawyer double-checking the expectations of the IRS and finding errors. A tax lawyer is trained to find everything that inexperienced eyes would overlook. Whenever a tax lawyer finds an error, there is definite potential for a reduction of taxes. Once Cage’s tax lawyer informed the IRS of their mistakes, he started building his case. The tax lawyer argued that the IRS double counted some of the deductions that had been restricted. Thanks to the hard work of Cage’s tax lawyer, the tax burden was reduced. Cage ended up paying for about a third of the original obligation. He and his tax lawyer considered it a victory.
Sometimes a tax lawyer provides benefits that do not initially appear to be significant. Upon closer examination, however, one can determine that the presence of a tax lawyer prevented the worst-case scenario from coming true. Some people may think that the worst is coming, but with the help of a tax lawyer this does not always have to be the case. In the end, the individual may still have to give something valuable up, but the final consequences are much better than they would have been without a tax lawyer.
Rose’s Trouble With The IRS
Pete Rose is the perfect example of an individual who lost something important, but still greatly benefited from having a tax lawyer. Pete Rose was a famous baseball star. Unfortunately, several controversies led to his eventual infamy. Back in the early nineties, he tricked the IRS and did not report all of his income. Because of this, he had to go to jail and he served community service hours. Pete Rose found himself in trouble again when he failed to pay taxes in the 2000s. His record with paying taxes did not really help his case. Therefore, he sought the help of a good tax lawyer for his needs. The tax lawyer assessed the situation and determined the proper reaction. Unfortunately, all of the taxes were valid and Rose would have to pay them at some point. Fortunately, Rose’s tax lawyer presented some alternatives to prevent further penalty. If Rose had not done anything, he probably would have gone back to jail for neglecting his taxes. Fortunately, a tax lawyer presented alternatives to prevent severe consequences. One of the options presented by the tax lawyer involved selling personal property. Rose determined that he would have to sell a property he had in Los Angeles in order to provide money to the IRS. The tax lawyer pointed out that it was much better to sell the property while it was still in his control. As every tax lawyer knows, if the government proceeds to a tax lien of a tax levy, the individual loses control. Rose was able to avoid additional jail time. While this could be considered a victory, he had to sell his personal property, which is a better alternative to jail. A tax lawyer is great at pointing out alternatives such as this.
Other Notes About Rose’s Case
Individuals who simply cannot pay taxes at the moment should not be concerned with jail time. They should definitely consult a tax lawyer, but they should not be worried about being imprisoned in the same way Rose was in the 1990s. Rose did not just ignore taxes. He also committed tax fraud. That, specifically, is why he went to jail. A tax lawyer can handle the situations that they are approached with, however, a tax lawyer cannot make all taxes go away. They can provide the steps that are needed to prevent serious consequences with life-changing ramifications.
It is well known that Judy Garland played Dorothy in the critically acclaimed Wizard Of Oz. Not many people know that Garland died at a young age, however. Garland’s lifestyle prior to her death is disheartening. She did not live the life of a star by any means and struggled financially. She owed a lot of taxes and suffered the consequences. A tax lawyer could have stepped in to help with back taxes. If Garland had lived today, she probably would have been guided to seek a tax lawyer for help. Fortunately for us today, a tax lawyer is much easier to obtain.
Garland was not very successful after Wizard of Oz until two decades later when A Star is Born went into production. Many predicted that Garland would be launched back into fame. However, the studios chose to edit the film in a way that angered the audience. The film was not a success and Garland did not get nearly as much money as she had anticipated. Since Garland spent as though she was a star, she owed a lot of money in taxes. This is where a tax lawyer could have been helpful. A modern tax lawyer would have advised Garland to sell personal property so that she could take care of taxes and not worry about them anymore. A modern tax lawyer would have done anything to prevent serious action.
The Unfortunate Ending
Unfortunately, Garland did not take any of the necessary steps to avoid consequences. She neglected taxes until the government took her home away. A modern tax lawyer would have pointed her to other available options. Unfortunately, Garland spent the remainder of her life traveling between hotels to survive. Her finances were insufficient to purchase a permanent place to live. She died very unhappy. Garland’s example must be taken with a grain of salt since the world she lived in was vastly different from ours. However, she most certainly could have taken measures to help prevent her unfortunate ending. Thankfully, today’s stories are not so depressing since a typical tax lawyer is very experienced. Anyone who is considering “waiting off” his or her taxes should strongly reconsider. Consultation with a tax lawyer can help individuals understand why paying a tax immediately is such a necessity. Waiting for too long only causes trouble. Ignoring taxes made Judy Garland an unhappy person. There are other options available. A qualified tax lawyer can expand these options in ways that were previously unimagined.
Another reason to hire a tax lawyer is that they are much more qualified to deal with taxes than many other financial advisors. In some cases, financial advisors may give incriminating advice. Financial advisors do not always take tax expenses into consideration. On the other hand, a tax lawyer knows what they are doing when it comes to taxes. One reason that it is bad to rely solely on the advice of financial advisors as opposed to a tax lawyer is that financial advisors will act on their own self-interest. They must give advice that maximizes profit. Sometimes, this means ignoring obligations such as taxes in order to give the appearance of more profit. A tax lawyer, on the other hand, acts in the interest of a client. In order to succeed as a tax lawyer, one must make sure all clients stay out of trouble. The same cannot be necessarily said of financial advisors. An infamous example of how a financial advisor led people wrong is Kenneth Starr.
Kenneth Starr was a significant investment for various celebrities including Al Pacino and Martin Scorsese. Many important individuals relied too much on him rather than a tax lawyer. Since they lacked a tax lawyer, they made various mistakes. Thankfully, Starr got most of the blame and suffered consequences. This is not always the case, however. A tax lawyer should always be available to double check financial work.
Greedy for money, Kenneth Starr took advantage of his access to powerful individuals. He gave them wrong advice, especially when it came to paying taxes. If any of these celebrities had hired a tax lawyer, they would have noticed something was wrong. Instead, Starr set up a scheme that went after the money of certain celebrities. He made mistakes that no tax lawyer would have. It is certain that Starr ripped off his clients and manipulated them on purpose, but some tax troubles probably came from a lack of knowledge. Pacino and Scorsese suffered greatly due to the actions taken by Starr. They should have taken the advice of a tax lawyer rather than rely on the advice of a single representative. With a tax lawyer, these celebrities would have saved a lot of trouble.
Justice is Served
Starr’s scheme was eventually discovered and he went to jail. But one cannot help but wonder the implications this has on financial advisors. It proves that some financial advisors cannot be trusted. This is especially true for those acting in their complete self-interest. A tax lawyer is much less likely to engage in this kind of behavior because it incriminates them. One must make the decision to have reliable advisors. Having the help of a tax lawyer is one of many ways to make sure finances are being dealt with properly. Pacino and Scorsese were implicated for their mistakes even though they were not really the ones that made them. If any individual improperly files taxes due to the advice of an inexperienced advisor, they must suffer the consequences. Even if the blame lies on the advisor, the IRS may take action on the client as well. Hiring a tax lawyer ensures the accurate and ethical payment of taxes. A tax lawyer can catch errors ahead of time and help make the necessary changes. There are many problems that a tax lawyer will prevent. Hiring a tax lawyer early on in the taxpaying process means that an individual can quickly and efficiently take care of their taxes. It also means that they have extra personal security should any discrepancy arise.
There is no telling what the next few years will bring. That is why it is important to contact a tax lawyer and make sure everything is settled. It is important to use a tax lawyer to help get in the habit of paying taxes. Once one has gotten in the habit of paying taxes, there is a much smaller chance of dealing with negative items such as tax levies and tax liens. A good example of how taxes can come unexpectedly is Ruben Studdard. One of the many reasons that this season two winner of American Idol has substantially declined in fame is that he had issues with taxes. It is very likely that he did not pay much attention to having a tax lawyer prior to his fame. Once Studdard got famous, he was caught off guard by the regulations for his new level of income.
Anything Can Happen
Studdard had no idea that he would be launched into fame. Once he was declared winner, he was struck a little bit off guard with his financial situation. His higher income led to higher taxes. Since he did not have a tax lawyer to advise him, he ended up being in debt to the government. A tax lawyer would have immediately outlined a plan to pay taxes. During the three years following his victory, Studdard accumulated $200,000 in tax debt. This undoubtedly took a huge portion of his new income. Studdard contacted a tax lawyer and took care of this problem promptly. He did not contact his tax lawyer as early as he could have, however. If he had contacted his tax lawyer promptly, he would have been spared a lot of trouble. His negligence of taxes garnered negative media attention and contributed more to his infamy than his fame. This all could have been prevented by a tax lawyer. Anything can happen at any moment in time.
The best way to prepare oneself is to hire a tax lawyer to make sure taxes are paid as quickly as possible. By the time Studdard was forced to pay his taxes, he was already declining in fame. His second album, which was released around the time, peaked at #20 on the charts, which pales in comparison to his previous effort. Studdard most likely had to adjust once again to the new amount of income he was receiving. If he had been communicating consistently with a tax lawyer, a lot of grief would have been prevented. A tax lawyer can prevent “surprises” by consistently giving advice. One should not have the attitude that a tax lawyer is not necessary. A tax lawyer is absolutely necessary for survival in the financial world. Do not act like these celebrities. Take these examples and realize the importance of a tax lawyer. A tax lawyer will always be willing to help. It is unfortunate that some celebrities did not stay on top of their taxes. It led to negative press coverage and frustration. It all could have been prevented if a tax lawyer had been brought into the picture. It would not have taken that much time for a tax lawyer to review the documents of each celebrity and determine their respective needs.
Even celebrities have troubles with taxes. As proven by this article, a tax lawyer is incredibly useful to all kinds of individuals. If a tax lawyer can help a celebrity reduce debt, then a tax lawyer can certainly help an individual who is not a celebrity. An experienced tax lawyer knows everything there is to know about paying taxes. This article has proven that even in high profile cases, a tax lawyer can suggest helpful alternatives to help individuals take care of their obligations. There are various ways to take care of back taxes than some individuals do not know about. A tax lawyer can prevent severe consequences from occurring in order to benefit the client. There are various items to consider regarding a tax lawyer. In order to qualify as a tax lawyer, an individual must be thoroughly educated in IRS regulations. In other words, when one speaks to a tax lawyer, they are speaking to someone who knows the ins and outs of filing tax returns and other items.
On top of that, an experienced tax lawyer has been through many cases and has knowledge that can only be obtained through such experience. A tax lawyer is a valuable resource for anyone dealing with taxes. One cannot present a very strong case alone. A tax lawyer is necessary if one is serious about reducing taxes or planning for payment. A tax lawyer knows what the IRS wants and will guide an individual through the process of appealing to the IRS. This is critical in ensuring a positive outcome for any procedure dealing with the government. A tax lawyer can be considered for any part of the tax-paying process. A tax lawyer knows how to prevent negative action from the IRS. This should be the priority of any individual in order to prevent trouble. If an individual already owes back taxes, a tax lawyer can point out methods of appeal. Those dealing with tax liens and tax levies must consult a tax lawyer before the IRS takes away their property. A tax lawyer is especially helpful if an individual believes they are being improperly taxed. They may even find errors that were not picked up the first time around, such was the case with Nicolas Cage and Dionne Warwick. Tax lawyers were able to pick up on items that resulted in the large reduction of their taxes. The government is not always perfect, and individuals must explore all of their options. The best way to explore all options is to find a tax attorney who is both qualified and experienced.Without a tax lawyer, several individuals would be in bad situations. Do not become one of these people. If you are experiencing troubles with back taxes, contact a tax lawyer immediately. A tax lawyer is available to help you with whatever you need. A tax lawyer is the ticket to financial security when it comes to taxes. They exist to help you.