When Should U.S. Taxpayers Consider IRS Disclosures?

Proactively disclosing violations of the Internal Revenue Code (and other federal tax laws) to the IRS provides an opportunity for U.S. taxpayers to resolve their tax controversies without facing an audit or investigation. But, while IRS disclosures can be extremely beneficial, they can also be extremely risky. As a result, informed decision-making is required, and making informed decisions starts with engaging an experienced Washington D.C. tax attorney who can guide you forward.

5 Common Situations in Which an IRS Disclosure May Be Necessary

When you engage an experienced tax attorney to help you resolve a filing or payment deficiency, your attorney will begin by helping you carefully consider all of the various options you have available. While there are many potential ways to resolve federal tax controversies, every situation requires a strategic approach that is tailored to the specific circumstances (and risks) at hand. Generally speaking, some form of IRS disclosure will typically make sense in each of the following situations:

• You are behind on your federal income tax filings
• You are behind on your offshore disclosures
• Your company is behind on its employment tax filings
• You or your company has filed an inaccurate federal return
• You or your company has underpaid the IRS

With that said, one of the keys to making a successful IRS disclosure is ensuring that an audit or investigation is not already underway. Once the IRS initiates an inquiry, many of the options (and potential benefits) that would otherwise be available go away. Before you make a disclosure to the IRS, your Washington D.C. tax attorney can communicate with the agency on your behalf and ensure that this option is still available. If it is not available, your attorney can get to work immediately building your defense.

5 Ways to Resolve Federal Tax Controversies Through IRS Disclosures

If making an IRS disclosure is your best option, the next step is to determine which type of IRS disclosure you need to make. There are several possibilities, including:

• Filing an amended or delinquent federal return (while avoiding a “quiet” disclosure)
• Submitting a voluntary disclosure to IRS CI
• Submitting a streamlined filing to the IRS
• Disclosing a violation in connection with an offer in compromise
• Disclosing a violation in connection with a request for settlement or penalty abatement  

To be clear, these are not the only options that are available—and not all of these options will be available in all circumstances. If you are behind on your obligations to the IRS, an experienced Washington D.C. tax attorney will be able to help you make informed decisions based on your specific circumstances (and risks).

Request an Appointment with Washington D.C. Tax Attorney Kevin E. Thorn

If you need to know more about IRS disclosures and the varying benefits and risks involved with the options that are available, we invite you to get in touch. To request an appointment with Washington D.C. tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 202-349-4033 or contact us confidentially online today.