In 2006, payroll taxes accounted for $840 billon of federal revenues, or 35 percent. That's a big chunk of revenue, and according to Clifford N. Ribner, a tax attorney in Tulsa, Okla. (http://www.cribneratty.com), it means that the IRS is watching payroll taxes very, very closely.
"Everybody makes mistakes," Ribner said. "If you missed filing or paying payroll taxes for one period, you may thought it wasn't a big deal. Truth is, the IRS considers it a very big deal, and you can find yourself in debt up to your eyeballs pretty quick when fines, penalties, interest and fees start piling up."
That's what happened in Newton, Mass. Thanks to a couple of mistakes on a telephonic transfer system, the city ended up not paying sufficient payroll taxes in October 2006 and March 2007, which resulted in $233,700 in fines. It was only with the help of a good tax attorney that they were able to get part of the fine reduced: from $177,439.96 to $43,988.69.
Nobody intends to get into five- or six-figure debt with the IRS. However, if it happens, Ribner has some advice for businesses on finding a good Tulsa tax lawyer.
"The first thing you have to know is that you can't go with a regular lawyer," Ribner said. "Tax law is a very complicated field of law, and you need somebody that's specialized in that to go to bat for you against the IRS. Taking one or two tax law classes in school doesn't count."
Ribner suggests setting sights on a lawyer that graduated from a highly rated school of law, such as NYU. It's even better if the lawyer has an LL.M. in taxation, which is a master's law degree specializing in tax law. Ideally, he'll also have litigation training and experience, to most effectively represent businesses in the inevitable controversy with the IRS about payroll tax noncompliance.
"You also want a lawyer who stays current in their field," Ribner said. "Laws are always changing, and you don't want to put your business in the hands of a lawyer who's behind in the times."
Another idea is to check the references of any potential lawyers. Peer-reviewed ratings, like Martindale-Hubbell, and the Better Business Bureau are both sources to peruse when researching a tax attorney.
"If they're a good lawyer, other lawyers will tell you so," Ribner said."Remember, this is your business, your livelihood on the line. Don't go for anything less than the best."
For more information about tax law and tips on hiring tax lawyers, visit http://www.cribneratty.com
About
Clifford N. Ribner is a tax attorney with more than 25 years of specialized tax law experience. His practice in Tulsa, Oklahoma, is limited to taxation, and he has helped many clients over the years in their battles with the IRS.
Press release provided by Xeal Inc. (http://xeal.com)