A. Tax law governs taxes and the payment of those taxes. It also covers penalties against those who do not pay their taxes.
A. A tax audit is when the IRS investigates a business or individual to determine whether or not that person or business paid the correct amount of taxes in any given taxable year. No particular type of person or businesses is audited and it’s typically random.
A. It is a good idea to be prepared for a tax audit at anytime, since they happen at random times. In order to be prepared, ensure that you have all of your tax information in one place – including receipts and other needed documents.
A. For larger businesses, it’s a good idea to have a tax attorney to rely on if you should ever find that you are in need of an attorney’s services. Individuals do not typically need tax attorneys unless they feel as if they will be audited or penalized.
A. A dependant is someone you take care of – typically a child or someone you have guardianship of. Anyone can claim dependants, unless the person is a dependant himself or herself.
A. Individuals could lose their belongings and assets – such as houses and vehicles. Businesses could be fined severely among other penalties. It is best not to let things escalate to this level. Seek a competent tax attorney to help you.
A. Taxes that are delinquent are taxes from the previous year that have gone unpaid after March of the next year. So, taxes which are due from 2009 are delinquent if they are not paid after March 1, 2010.
A. Let the IRS know at once that you are unable to pay all of your taxes at one time. They can set up a payment plan and work with you so that you can get your taxes paid. The trouble comes when you are delinquent and are not paying anything at all.
A. In most cases, yes, you will be expected to pay interest. The longer your taxes are overdue, the more interest you are subject to.
A. You may be able to claim certain expenses as deductibles if you work from home, but typically you will have to prove that the area you work in is used for that exclusively and nothing else. You should speak to a tax law attorney to determine what you’re able to claim as a deductible and what you’re not able to.