Resolve IRS Back Taxes: Biggest Mistakes Taxpayers Makes When Faced with IRS Problems
Recently I blogged about my guest appearance on Fox Business News talking with Brian Sullivan about the latest IRS collection efforts and how taxpayers need to know how to avoid and resolve back taxes in order to secure their financial future.
In the current tax climate, the US Government is hard-pressed for funding in order to pay for programs such as the $800 billion stimulus package, the “Cash for Clunkers” program, and a possible overhaul of the health care bill. Since the government has not been paying for these programs with current taxpayers’ money, it has turned to collect from non-filers, delinquent taxpayers, and tax cheats with increased aggression.
In tricky times like these, it’s important for taxpayers (especially those who owe back taxes) to be informed. Here are some common mistakes that people make when facing IRS tax problems:
Believing the IRS Forgives “Honest Mistakes”
For those who have experienced unusual circumstances (such as a death or serious illness of a loved one or natural disasters like wildfires) and as a result of these unexpected situations, failed to pay back taxes, are more likely to get penalty relief from the IRS. The IRS is the most brutal collections agency on the planet–always has been and always will be. There is no “honest mistake” in the IRS eyes that will dissolve any one taxpayer’s back taxes. However, if you choose your words correctly and pick a good tax expert to represent you, you could reduce your IRS penalties substantially.
Talking Too Much Can Get You in Deeper IRS Trouble
Another one of the biggest mistakes taxpayers make is to talk too much to the IRS representative or agent over the phone (or in person). The IRS auditor will oftentimes appear nice enough that you become “comfortable” to talk about your IRS issues. This is misleading; half of the referrals to criminal investigation comes from IRS auditors that appear “nice” but are actually schmoozing to get incriminating evidence out of your chatter.
Not Knowing Your Rights as a Taxpayer
Taxpayers need to know that they are protected under the Taxpayer’s Bill of Rights (signed into law in 1998 by Clinton) that acts like the Miranda Rights. Taxpayers are not at all obligated to speak to any IRS officer or agent until they want to–or until their representation takes over the communications with the IRS for them.
As soon as you are notified by the IRS for back taxes, delinquent tax returns, or IRS penalties, you are walking a long legal road on “egg shells.” If you owe more than $15,000 in back taxes, you will need professional tax representation (tax attorney, CPA, or certified tax resolution specialist) to help fight your case against the IRS.
Tax Resolution Services is the only national tax resolution firm certified by the ASTPS to negotiate tax settlements with the IRS. We are a nationwide professional tax solution company with a team of tax attorneys and IRS specialists who can help you find tax relief. Free tax consultation - sign up on our website or call us at 866-IRS-PROBLEMS (866-477-7762).
More Tax Help, IRS News and Tax Relief Tips:
- Tax Help News: IRS Enforcement to Get Priority, Big Bucks in 2010
- Tax Help News: 13% of Americans Find Tax Evasion Acceptable as IRS Audits Increase
- IRS Tax Relief: Seven Common Income Tax Relief Myths That Can Get You into IRS Trouble
- Tax Resolution News: IRS Warns Against Frivolous Tax Arguments That Can Incur Severe Penalties
- Tax Help: How to Resolve Your Back Taxes & Prevent Tax Problems If You’re Short on Cash This Season
Tags: Back Taxes, delinquent taxes, IRS debt, irs problems, Michael Rozbruch, penalty relief, tax attorney, tax cheat, tax evasion, tax expert, tax help, tax relief, tax resolution
