Getting into trouble with the IRS is anything but a good idea. However people often find themselves getting in touch with an IRS lawyer to help them get out of the quandary that they got themselves into by being rather careless with their finances.

Since, prevention is better than cure, it is better for people who are prone to taking risks to watch out for certain instances in which they can find themselves having to consult an IRS audit attorney to negotiate for them. So here is a list of reasons that can get you into a position that will require an IRS lawyer to bail you out:

Reason #1: Too many exemptions

You are only entitled to a certain number of exemptions (which benefit you with a major tax deduction) and since you can only file these exemptions for yourself, your spouse and dependents, just make sure that you do not end up filing an extra exemption or two since the rules for dependants require the meeting of certain criteria.

Reason #2: Not paying taxes when self-employed

There can be confusion with the fact that one might not know how much to pay when self-employed, so it is important for you to get these details down and pay the right amount of taxes as well.

Reason #3: Not paying taxes when gambling

All your winnings from casinos, lotteries and at the course count as income, and so it is important for you to understand that this ‘income’ is taxable.

Reason #4: Not aware of taxes levied on early withdrawal from your retirement fund

Withdrawing money from a retirement fund such as IRA or a 401 (k) before you reach the age of 59 and a half might incur a ten percent federal penalty on your investments as well as a state penalty as well including income tax too. So make sure that you understand the consequences of taking such an action as you will find yourself visiting a tax lawyer San Francisco sooner rather than later.