Best Tax Lawyers Portsmouth, VA

Portsmouth, VA Tax FAQs

• Where does the Tax Court hold trial sessions closest to Portsmouth, Virginia?

  As of July 2023, there is no information about a permanent tax court near Portsmouth. You may need to check the notice of trial for the court address.

• Where is the low-income taxpayer clinic that is closest to Portsmouth, Virginia?

  The nearest low-income taxpayer clinic to Portsmouth is the Community Tax Law Project located in Richmond. You can reach them at info@ctlp.org or P.O. Box 11322, Richmond, VA 23230.

• If you were not able to list income sources in Portsmouth, will you be penalized by the IRS?

  If you were not able to list down your income sources in Portsmouth, you will be penalized by both the IRS and the state revenue department for tax evasion, specifically mispresenting or hiding financial information. If you think it was an honest mistake, you should seek legal advice from a tax lawyer to help you make an appeal and prepare a possible legal defense.

• What are the possible penalties for tax evasion in Portsmouth?

  If you commit a tax fraud or tax evasion in Portsmouth and within the state of Virginia, there will be heavy fines and possibly a prison sentence if you're proven guilty. Federal penalties, usually fines of up to $250,000 and up to five years in prison. The Commonwealth of Virginia may also hand down tax evasion charges and penalties ranging from 100% of your tax penalties plus the tax owed.

• Do you need to pay inheritance tax to the state if you inherited a house in Portsmouth?

  No, you do not need to pay any state-level inheritance tax if you were named as a beneficiary of a real estate property in Portsmouth. This applies to the whole Commonwealth of Virginia, however, if you receive an inheritance from someone living in another state, you will have to shoulder taxes from the state where the property is located. Federal taxes also applies to Virginians for assets valued at $12,920,000 and more.

• What is a stepped-up basis in capital gains tax for real estate beneficiaries in Portsmouth?

  A stepped-up basis is used in computing capital gains tax for inherited properties in Portsmouth and the state of Virginia. It is the adjustment made to an asset's basis to reflect its value at the time of the owner's death. If you inherited a house with an appraised value of $200,000, and sold it 5 years later with a price tag of $250,000, you will only be taxed on the $50,000 gained value.

• Can you seek a tax amnesty in Portsmouth if you cannot pay your taxes in full?

  Yes, if you are a resident of Portsmouth, you can apply for a tax amnesty with the IRS if you cannot pay your taxes in full. You can apply for an 'offer in compromise' in order for the IRS to hold off any sanctions or penalties. You may need to seek a tax attorney to prepare your letter and documents in order to convince the IRS that you need a settlement plan.