Received a dreaded letter from the IRS informing you of owing back taxes? Most almost immediately fret once read, but knowledge is truly empowering when dealing with such a stern government entity!
Here are a few helpful tips for combating the IRS when you may owe taxes:
1. Know your rights! Sounds simple enough, but knowing and understanding your personal rights is indeed often case dependent. While this may make your endeavor a tad trickier โ donโt let the pages of confusing government jargon deter you. A good place to start is with โIRS Publication 1โ (http://www.irs.gov/pub/irs-pdf/p1.pdf).
2. Act as soon as possible. This isnโt to say immediately of before you have done your research and understand your rights, but itโs a proven fact they are much kinder and easier to deal with when a taxpayer makes an honest effort to take initiative and communicate accordingly. Donโt make it any harder on yourself!
3. Choose an appropriate representative for your case: whether a smaller amount and doing so yourself, utilizing an expert such as a CPA, or even a tax attorney, sometimes using an expert and paying associated fees very often pay themselves back in future savings (including headaches). Also, with 10 daysโ notice to the IRS before a scheduled meeting, they are allowed to accompany you, as well.
4. Be aware of the โAppeals Officeโ. If a collection case cannot or is not being resolved appropriately or you disagree with the ruling, you have the legal right to request further review by the IRS โAppeals Officeโ or a court. See โPublication 5โ and โPublication 556โ via the IRS website for assistance for these matters.
5. Be sure itโs YOUR debt โ not an ex spouseโs or former business partner. A clause called โInnocent Spouse Reliefโ may exclude you from any amount(s) owed. This is true when transactions were unknowingly made by the other involved party. For a circumstance such as this, see โPublication 971โ and โForm 8857โ for further clarification.
6. Lastly and most importantly: DOCUMENT EVERYTHING! This includes phone conversations and any dialogue with any and all parties involved on a case. Also, when and if you do come to an agreement with the IRS โ get it in writing!
Following these few steps will help alleviate many mistakes and headaches encountered when dealing with what can often be a confusing, frustrating process. You can also seek out aย trusted tax relief company like Optimaย to help.ย Most IRS officials will also admit that keeping a kind, calm tone helps your cause tremendously. The majority of their officials that deal with the public are there to help.