Any taxpayer feels a bolt of fear when they look in the mailbox and see correspondence from the IRS, or when they answer a phone call and it is the IRS on the other end of the line. This government agency is the most well known, the most feared, and the least liked out of all the government agencies, and for very good reasons. The Internal Revenue Service has a variety of powers, and this agency can make the life of any taxpayer miserable when the taxpayer does not comply or understand their rights.
The IRS uses fear, exaggeration, and intimidation as scare tactics so that taxpayers comply without protesting or consulting a qualified and experienced tax attorney. There are a number of myths and false strategies that are widely available which many tax payers believe, and hopefully this article will correct this inaccurate information and expose the truth about the IRS and what this agency can do.
Myth 1: The IRS Only Audits High Income Earners
Fact: If you are a high income earner then you have a higher risk of being audited by the IRS but even low income earners may be audited in any given year. Every single tax return that is filed for the year has the possibility of being audited, no matter how simple the return may seem or how low the income reported is on the tax return. If you assume that this government agency will not audit you because of your lower income then you could be creating future IRS problems and tax disputes for yourself in the future.
Myth 2: You Can Not Avoid Paying Your Tax Bill In Full
Fact: The IRS wants every taxpayer to pay off the full amount that this agency claims is owed, and IRS agents will not usually be quick to explain that there are alternatives for taxpayers, The truth is that taxpayers have a number of options and programs available to settle IRS tax debts and tax disputes. A qualified tax attorney with experience dealing with the IRS can help taxpayers navigate the paperwork and applications necessary in order to access programs which can assist with resolving tax debts for less than the full amount.
Myth 3: Ignoring the IRS and Dragging Your Feet Will Make the IRS Go Away
Fact: This is a strategy that many taxpayers use, but it will not help resolve a tax debt and it is a big mistake. Ignoring this powerful government agency will not cause them to go away, it will only compound the problem and create additional problems, penalties, and interest amounts for the taxpayer. Meet the problem head on, and contact an experienced IRS lawyer for advice.
Myth 4: The Collection Powers of the IRS are Unlimited
Fact: It is true that the IRS is a very powerful government agency, and they have a wide range of options in their attempts to collect a tax debt that is owed. The powers of the IRS are not unlimited though. This agency can freeze accounts, seize assets, and even cause companies to close down,. In serious cases the IRS can even file criminal charges against a taxpayer that could result in jail or prison time if the taxpayer is found guilty. In spite of all these powers there are still rules, regulations, and laws in place that IRS agents must follow. An IRS attorney can help the taxpayer understand the rules, and ensure that the IRS follows them.
Myth 5: Leaving the State or Even the Country Can Stop the IRS
Fact: It is not possible to out run the IRS, this agency will usually find you no matter where you go. You should never underestimate the ability of the IRS to track down a taxpayer who owes a tax debt. Instead of running contact a tax dispute attorney and meet the problem head on.