Finance Tax Time

There was once a song about battling the law and losing. Fortunately, battling the IRS is possible and sometimes inevitable.

Battling the IRS

There comes a time when many Americans must take action against the IRS. The IRS can come down swiftly and without mercy against taxpayers for issues ranging from simple mistakes to genuine tax evasion. When such a situation occurs, usually in the form of an audit and followed by possible federal prosecution, it becomes necessary to stand up to the IRS. As many experts will tell you, knowing the right steps to take and doing things the right way can actually make battling the IRS prove to be a very valuable thing.

Every year, honest, tax-paying Americans worry that their income tax return will end up being audited by the IRS. In fact, the number of audits has increased quite significantly in recent years, lending its hand even further to the worry and stress. Audits can lead to major fees and even criminal prosecution. Needless to say, such a situation can become ugly very quickly.

However, many Americans don’t realize that they can fight the IRS. And, not only can they fight, but often times they can emerge with some sort of victory. In fact, recent studies have shown that over 41% of Americans who took their cases to the IRS’s appeals division won at least some degree of relief, while others had their penalties wiped out completely. Not only this, but countless numbers of other Americans have fought cases against the IRS in district courts and also emerged victorious.

What this means for the average American is that the IRS shouldn’t worry you too much. Obviously, an audit can be very scary and can occur at any time. However, as long as you did file your taxes in honesty, they are many venues you can look to for help. Just do some research, online or offline, and find a good tax lawyer to represent you. Whatever steps you take, do NOT talk to the IRS yourself. Your statements are evidence against you and you may inadvertently provide evidence the IRS has no right to obtain.

You will be surprised at your own chances of defeating the IRS and having your penalties reduced or even eliminated. Battling the IRS is something that can prove to be a very valuable tool for many Americans looking for tax relief.

Richard A. Chapo is with BusinessTaxRecovery.com - providing information on taxes.

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It’s a moment every person dreads. You pick up the mail and there is an envelope from the IRS. It’s not a refund check. What do you do?

Don’t Panic

Each year, the IRS sends out millions of “correspondence audits” to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. These audits normally cover a very specific issue, often notifying you of additional small amounts of income for which you owe tax. Each letter and notice provides specific instructions explaining what you should do if action is necessary to satisfy the inquiry.

Most correspondence can be handled without calling or visiting the IRS. You simply follow the instructions in the letter and the matter is put to rest. Alternatively, you can contact the IRS to contest the matter. Simply call the telephone number indicated on the letter or write an explanation as to why you disagree. Make sure to include copies of any supporting documentation you want considered by the IRS. Typically, it will take the IRS between one and two months to respond. During the first quarter of the year, it can take two to three months.

Sometimes, the IRS sends a second letter or notice requesting additional information or providing additional information to you. Be sure to keep copies of any correspondence with your records. The IRS has been known to lose track of actions involving a taxpayer’s account.

Worse Case Scenario

Everybody has a few really bad days in his or her life. You know, the car breaks down, you spill coffee on your shirt while driving to workyou get notice of a full blown audit from the IRS. The first step you take should not be drinking to excess or driving for the border. You have rights when the IRS comes calling and one of them is particularly important.

Representation

You have the right to be represented by an accountant or attorney at your audit. Under no conditions should you even consider going to an audit by yourself. Doing so would be like throwing red meat to a lion. Instead, spend the money to get representation and let them handle the audit. In most cases, you won’t even have to go to the audit.

Nightmarish tax audits are generally a thing of the past. A letter from the IRS should not cause you to faint. Usually, the news isn’t that bad. If it is, hire representation and let them handle it.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

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Dealing with the IRS when you owe back taxes is a fairly scary thing. The IRS realizes you do not want to talk with its agents and has come up with a solution.

Resolving Your Back Taxes Without Talking to the IRS

Imagine picking up the phone, calling the IRS and telling them you have not paid taxes for a few years. In a poll of the scariest scenes from movies, that has to rank right up there with the stomach scene from Alien and so on. Truth be told, most people will put it off for as long as possible. Many will just stick their head in the sand and hope nothing ever comes of it.

The IRS realizes it has a big, bad reputation. It likes it. If people thought the IRS was friendly, how motivated would they be to actually pay their taxes? Not very! While the IRS likes to maintain this reputation, it does have a backlash impact. Taxpayers that get behind on their tax payments often do not move to resolve things because they fear the IRS ripping them apart if they act. This, of course, means the back taxes don’t get paid until the IRS takes action. It costs the IRS man hours it doesn’t have and puts otherwise law abiding citizens in a worse situation. After years of contemplating this situation, the IRS has come up with a possible answer.

If you owe back taxes to Uncle Sam, it is critical that you take voluntary action to resolve the problem. The IRS takes a much different view towards those who come forward versus those that hide. The IRS even has instituted payment plan programs to help voluntary reporters resolve their issue and get back into the system. The problem with these programs, however, was most taxpayers feared calling the IRS so much that they didn’t take advantage of them.

The IRS has now implemented a new online system for people that owe back taxes. Instead of speaking with an IRS agent, you can now go online and fill out an application for a payment plan to resolve your back taxes. To use the system, you must have filed all relevant tax returns, even if you couldn’t pay the actual tax. If you have not done this, you need to before applying online. Once you have the returns in, you will need to wait for a balance due notice from the IRS. You then go online and apply. You will need the balance due, your social security number, and a pin number that is on the balance due notice.

This new program is a very smart move by the IRS. Imagine resolving your tax problems without every talking to anyone at the agency! To access the program, just go to the IRS site.

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