Things to Remember When Dealing With IRS Tax Issues

IRS Tax Issues and Solutions

“Paying tax is not a punishment. It is a responsibility.” – Chris Matthew

IRS Tax Problems

When dealing with tax issues in USA, it is important to take the process seriously. The IRS Restructuring and Reform Bill forces the IRS to completely communicate with the public. It also grants taxpayers a number of rights during the tax paying process. When dealing with a tax problem, it is crucial that you act upon it instantly and take appropriate measures to overcome it. If you are dealing with unfilled tax returns and need guidance, go through this write-up as it covers five crucial things you need to do to solve your tax problems.

1. Don’t Ignore IRS Notices

“After you receive a notice of any outstanding tax penalties, it’s vital to address the issue immediately”, says David Moise, principal-in-charge, Tax Procedure and Controversy Practice at Weiser Mazars. IRS appeal is the best way to reply to the IRS immediately if they speak out to you. Ignoring the IRS notices will prove fatal in the long run. It is, therefore, best to contact the IRS yourself when you get an IRS notice. When you contact the IRS. A revenue officer may ask for certain financial information to understand your current situation and whether or not a negotiation is required.

2. Know Your Rights

According to National Taxpayer Advocate Nina E. Olson, “Taxpayer rights are human rights.” It is important to read and understand your tax rights. Among your most notable rights is the right to hire a representative and get professional help in crafting and fighting your case.  If you feel that you are mistreated during your interview with the IRS, you have the right to stop the process and ask to speak to a supervisor. The best way to know your tax rights is by visiting the IRS website and going through the Taxpayer Bill of Rights. The document contains all the rights you need to know when dealing with tax issues.

3. Never Meet the IRS Alone

Always meet the IRS with a representative. Having an experienced professional with you when you meet the IRS gives you an added advantage and helps make sure you are protected. One thing to always remember is to be honest and straightforward with your representative. Withholding important information about your tax issue from your tax attorney will only make your situation worse. It is also important to note that if the allegations hold any weight, notify the IRS to negotiate a deal.

4. Understand the Process

According to the law, the IRS cannot take hasty decisions such as confiscating your bank account, car, or business without a prior written notice. The IRS must give you an opportunity to challenge any allegations and either negotiate a deal or pay the debt in full. If, however, you are not in a position to pay your tax debt in full, four alternatives may be open for you. Suspension, bankruptcy, paying in installments, and an offer in compromise are four alternatives you may research upon when you paying your tax debt in full seem impossible. It is also important to remember that the IRS cannot give you instructions or suggest you methods to protect yourself.

5.  Hire a Tax Attorney

“A few tax issues get complicated and the best way to deal with such issues is hiring an accredited professional.” says Bill Smith, managing director of CBIZ MHM. Do your research and shortlist a few tax attorneys in your area who have positive ratings and reviews. Take quotes from the shortlisted tax attorneys and visit them for some free initial consultation. Hire the tax attorney with maximum experience and who understands your situation. According to Michael Eisenberg, of Eisenberg Financial Advisors, “It is important to be honest and upfront about your tax situation and provide the tax attorney you hire with documents that boost your chances of reaching an agreement with the IRS”.

Bottom Line

If you have Tax issues in USA you need to act immediately to get them resolved. Avoid delaying your response to the IRS notice as it will only compound your problems. Another thing to keep in mind is that when dealing with tax issues, you need to be well-versed with your rights. Knowing and understanding your tax rights is crucial in ensuring that you take appropriate measures to deal with your tax problems. It is also crucial to meet the IRS with a representative present and understand the proceedings of how they deal with tax issues. Research on the alternative measures available to you if you don’t have the funds to pay your tax debts in full. It is, however, important to note that to opt for any one of these options, you need to be eligible. Hire a reputable tax attorney to help you negotiate a deal that works in your favor and frees you from the burden of having a pending case with the IRS.

Read More Tax Articles: Tax Issues, Tax Savings, Tax Planning, Tax Filing etc.

About Archana 36 Articles
Archana is an independent finance and investment advisor since 4 years and recently added with Investment Pedia. User are welcome to put questions on her contributions.

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