For most taxpayers an IRS tax dispute is the stuff that nightmares are made of, and this can cause fear and anxiety in the most honest taxpayer. This government agency has a reputation for being highly aggressive and unforgiving, and this reputation is well earned. IRS revenue agents have a wide range of powers at their disposal. These agents can garnish earnings and paychecks, seize property and freeze accounts, and even take your home or put you in jail at times.
As experienced IRS attorneys we see the devastation that the IRS can cause on a regular basis if the taxpayer does not take quick action to prevent it. If you are in a tax dispute with the IRS then you should contact a qualified tax attorney as soon as possible.
The best way to avoid being intimidated and bullied by the IRS is to avoid a tax dispute entirely, and there are five facts that can help you do this.
1) The IRS understands the tax code, but they are betting on the fact that most taxpayers do not understand this code and they will take advantage of the lack of knowledge that a taxpayer has. If you do not have a tax attorney on your side then you are at a disadvantage right from the start. Every year the United States tax code gets longer and more complicated, and taxpayers can not keep up unless they are continuously educating themselves on these changes. An experienced lawyer will be aware of the changes and stay on top of the tax code each year.
2) Computerized systems at the IRS are programmed to check tax returns for any red flags. These red flags are indications that the taxpayer has made a mistake or that the individual is trying to illegally lower the tax debt that is owed. The IRS does not have enough resources or agents to look over every single tax return that is filed each year. Learning what causes the system to send up a red flag can help taxpayers avoid an audit.
3) Extensions allow a taxpayer to file a tax return after the deadline, but this will not allow the taxpayer to pay any taxes owed after these taxes are due. For most taxpayers this does not make sense but it is the reality of the IRS. If you can not prepare your tax return fully before the filing deadline then an extension will provide more time for you to file, but you can not ay any taxes owed late or you will be assessed late payment penalties and interest. The penalties and interest can add up very quickly.
4) Ignoring the IRS will just make your situation even worse. This may be a common reaction for those who receive notice of a tax dispute with the IRS but it is the worst mistake that you could make. There is a reason why the IRS is seen as persistent, the agency will not stop or give up. The right move is to try to resolve the dispute, and this will go better if you have an experienced IRS attorney at your side.
5) The IRS will often settle a tax debt for less than the full amount owed, but only for those who know how to ask for this. The IRS intentionally makes this process difficult so that all taxpayers do not take advantage of these programs, but with the right legal representation you can resolve your IRS tax debt for less.
Avoid the misery of dealing with the IRS. Knowing these five tips can help you avoid a tax dispute with the IRS, and if one starts then you should consult a qualified attorney right away.
