Are you at risk of facing IRS problems?
You last filed taxes years ago or didn’t report income. The IRS can come after you for tax evasion at any time, but they wait for at least three years before filing charges. You probably won’t face prison because you racked up debts, but you can expect audits, collection letters, and court hearings.
But what if you’re not guilty? What can you do when the IRS comes after you for something you didn’t do?
Read below to learn what to do when you become a target of an IRS audit.
Understanding Initial Letters from the IRS
In some cases, the IRS may send you a letter with information about how you can resolve the tax issues and related penalties. This letter should explain why the IRS believes there is an issue and give some basic information about your options to take care of it. If you are still determining any terms in the letter, contact the IRS customer service representatives for clarification.
Understanding the letter from the IRS is essential to decide what steps you must take to resolve the issue. Additionally, the IRS may ask for certain documents to explain what payments are acceptable.
It is essential to keep track of all communications from the IRS and respond promptly. Failure to do so could result in further penalties and complications.
Explore Your IRS Solution Options
Other options may aid, such as applying for a Currently Non-Collectible status, where the IRS agrees not to pursue a collection action on your tax debt. Additionally, the IRS offers many forms of aid, such as penalty discounts, which allow you to have penalties caused by late filing or other errors waived or reduced.
Negotiate a Reasonable Payment Plan
It allows taxpayers to discuss taxes due without incurring high-interest fees or facing collection action. Although the IRS will only sometimes accept the proposed payment plan, there are ways to ensure their proposal is the most helpful to the taxpayer. It’s best to create a budget for income and expenses to decide how much you can pay to the IRS.
You should present this information with payment plan proposals to the IRS before negotiations occur. To increase approval odds, you should set aside funds to cover the proposed payments before discussing a plan.
Work with Professional Tax Advisors
Hiring an attorney is one of the best things to do when facing an IRS problem that garnishes your wages. Having a qualified tax professional on your side is crucial in helping you gain control of your situation and getting the IRS to consider lifting the garnishment.
Tax advisors can refer you to the proper IRS programs and services, explain the various tax laws that may apply to the situation, and give input on how to challenge the amount of taxes owed.
A Little-Known Tool to Resolve IRS Problems
Facing IRS problems can seem like a daunting issue, but you need to remember that you have options. Take the necessary steps to discuss your IRS problems and stay calm.
Utilize all available resources to get the best outcome possible. Seeking aid from a qualified tax professional will be your most beneficial decision. Take action today and start the road to financial freedom.
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