The Tax Club Lawsuit
Have you heard of the tax club lawsuit lately? If you have, are you wondering what it means? If you don’t, then you are probably just as confused as everyone else. So let me give you a brief rundown of what happens and how the IRS can use this to their benefit in the tax audit situation.
First, we need to go back to the original question. What is an audit?
In simple terms, it’s when the Internal Revenue Service goes into an audit process with the taxpayer. The auditor will be looking for any discrepancies that could show that the taxpayer didn’t pay their taxes over the year. So an audit is basically the formal request by the Internal Revenue Service to the taxpayer to prove that the tax money they deducted wasn’t the result of an honest mistake or an error.
The person who receives the notice of audit is called the examiner.
In the case of the tax lien lawsuit, the tax collector is called the examiner. They serve a notice of audit on the taxpayer, and the taxpayer must comply with the notice of audit within a certain period of time. After that period has passed, if there are no deficiencies the taxpayer is automatically exempt from the audit.
Now that I’ve explained what an audit is and explained what the tax code says about the audits, let’s discuss the basis for a tax club lawsuit.
The Internal Revenue Service uses many unfair methods to try and determine whether deductions were properly taken. For instance, they may check to see if the taxpayer took additional child care expenses or took more than the limit on a pension. They might check for fraud. There are many reasons that they might look into things, so it’s not as if a taxpayer can just claim that the audit was illegitimate.
The best way for anyone to win a tax club lawsuit against the IRS is to have proof that the investigation into deductions was wrong. That’s why a tax attorney is needed. An attorney looks into the facts behind the audit, and he usually has inside information about how the process works. With that kind of information, you can prove to the IRS that the method used was wrong and was designed to catch people doing things they shouldn’t be doing.
When a lawsuit is filed against the IRS, the taxpayer (the person that owed taxes) will have to go before an administrative law judge.
If the lawsuit is successful, the IRS will have to disclose all of the internal data that was used in their audit. This data will include everything from the forms that the person filled out to the amount of credits that the taxpayer claimed on their taxes. The audit case will also show where the errors were made and who made them. If the lawsuit is successful, the tax lien lawsuit will force the IRS to pay the tax payer the money that they owe based on the evidence found in the audit report.
Even though the IRS is required by law to share internal information, the IRS will still fight a tax club lawsuit.
If the Internal Revenue Service wants to win the case, they must have all the evidence that they need to prove that the taxpayer did not owe them money on the back taxes. The Internal Revenue Service’s plan of action is usually to challenge the legality of the tax lien lawsuit, deny the claim, or ask a judge to dismiss the case.
The tax club lawsuit is a powerful tool for anyone that wants to make sure that they get a good settlement from the Internal Revenue Service. As long as the taxpayer has evidence that they did not owe the money, the Internal Revenue Service has no choice but to let the tax lien lawsuit go forward. If they lose, however, they have to give up the information about who paid the money. In a tax lien lawsuit, the IRS is usually found liable and forced to pay the money back to the tax payer.
