Earnings Tax Returns Your Accountant Must Not File
You have been feeling uneasy (probably even guilty) because you have failed to report your beneath the table organization income. Maybe you've never filed a tax return, even although you know you owe income. Lastly, you get in touch with an accountant to resolve the situation.
Although it is commendable that you are attempting to correct matters, hiring an accountant to do these delinquent returns could be a big mistake. The cause why is simply because tax evasion is a criminal offence or felony. You might also be subject to civil action.
Would you employ an accountant to defend you in a criminal analyze personal injury lawyer fairfax va proceeding? Not most likely. You would be smart to employ a qualified lawyer.
Initial of all, lawyers have one thing called solicitor-client privilege (also recognized as attorney-client privilege or legal guidance privilege). This basically implies that things you inform your lawyer when looking for legal suggestions are confidential and cannot be employed against you. Even written records can be covered by this privilege.
On the other hand, your accountant can be compelled to testify against you and all records in his possession can be demanded by the authorities.
Second, your lawyer can prepare a legally binding agreement that can shield you. In return for your coming clean, the tax authorities may agree not to charge you criminally and, in some instances, even minimize penalties or tax liability.
If your accountant attempted to do the very same thing, they could demand all information about you. Your accountant would not be protected by solicitor-client privilege.
If, say, your analyze personal injury lawyer fairfax va accountant filed your tax return from ten years ago on your behalf, the tax authorities could nevertheless charge you with tax evasion, in spite of the reality that you are naturally trying to rectify matters (albeit a bit late).
It is even attainable that your accountant could get into trouble for failing to report your delinquency. On the other hand, your lawyer can't be compelled to testify against you, becoming protected by solicitor-client privilege. Your lawyer might also have his own in-house accountant in order to protect you.
Your lawyer (specializing in criminal and tax law) will most likely negotiate an agreement with the tax authorities just before filing any tax returns.
Therefore, if there is a good likelihood you could be charged criminally for your failure to file tax returns or correctly report earnings or expenses, do not see your accountant. Instead, seek advice from a lawyer specializing in such matters before prior analyze personal injury lawyer fairfax va to just before ahead of you file or amend any returns.