New Jersey Tax Audits And Collections

There are three main agencies that conduct tax audits for NJ Business:

• Internal Revenue Service
• New Jersey Division of Taxation
• New Jersey Department of Labor

Note: even though the Department of Labor does not sound like a taxing agency, it is very difficult to audit. Its goal is to falsely claim independent contractors are employees. This is a scam because it forces businesses to pay unemployment and disability taxes for people that can never be collected.

Tax Collections

The IRS and State governments have extraordinary powers to seize your bank accounts, wages and assets. They do not “play nice.”

The IRS Ambush

Most people are surprised when the IRS comes knocking at the door. Typically, the revenue officer starts asking questions and demands that the house be entered. That is where the taxpayer makes crucial errors. The most important thing that the taxpayer can do is stop the revenue officer and state that a tax professional represents the taxpayer. Get a business card or write down the name, address and telephone number of the revenue officer. Do not say anything other than, “My tax consultant will call you.”

Say Nothing

The Revenue Officer is trained to trick taxpayers into making damaging admissions that could hurt them in a later criminal trial. For example, one trick question is to ask a delinquent taxpayer, “Didn’t you know you had to file a return?” or, “Why didn’t you file your tax return?” If the taxpayer answers the question, it is an admission of knowledge that the return should be filed. That admission has sent many unsuspecting citizens to jail.

Warn Your Family

Another method that revenue officers use is to quickly get information from an unsuspecting spouse or family member. For example, the revenue officer may ask a spouse where the taxpayer works. The revenue officer would then immediately prepare a wage execution to take most of the taxpayer’s income before it is paid by the employer. The revenue officer may also ask for banking information. If the unsuspecting spouse or family member reveals the name of the bank, the revenue officer then levies against the account, wiping out all of the funds.

Do You Need Help With Past Due Taxes?

The IRS is rapidly increasing the collection of past-due taxes. New tax collectors, known as “revenue officers,” are being hired and trained with the sole purpose of getting as much money for the IRS as possible. Revenue officers are trained to cunningly get you to reveal personal information so they can seize your bank account, execute on your wages and levy on your other assets. The IRS will pressure you to give them all your assets, even if it means sacrificing your spouse and children’s well-being.

Protection Against The IRS

The costliest mistake you can make is not immediately hiring an expert tax attorney to protect you from the IRS. Your tax attorney will stop the IRS collection tricks and the constant calls and pressure tactics. In addition, all of the skills and techniques for protecting you and your assets will be applied for your benefit.

You have options!

Letting the IRS squeeze you of everything you own is not your only fate. Your tax lawyer can:

• Stop wage executions.
• Get the IRS to allow installment payments.
• Present a compromise of the taxes, interest and penalties.
• Protect your and your family’s assets.

You Need A Tax Lawyer

The only intelligent way of handling the IRS is to not say anything. Any conversations with the government should be with your attorney present. In fact, many times it is better to have your tax attorney exclusively talk with the IRS to prevent possibly damaging admissions. Call Ronald J. Cappuccio J.D., LL.M. (Tax), today at 856-665-2121 or send an email to get started.