Note – This post is an excerpt from Nick Nemeth’s talk on ‘Three Things You Should Never Discuss with the IRS’. To listen to what Nick had to say, watch the complete video at the end of this post.
The Internal Revenue Code is extremely complicated and most taxpayers have little to no clue about the federal tax laws. This lack of understanding, combined with the pressure of dealing with the IRS, often results in taxpayers committing mistakes that cost them their homes, businesses and even families. To help you avoid facing a similar situation, in this post, we list three most important things that Nick advices to avoid talking about when dealing with an IRS employee.
1. Never Disclose Any Information Until Asked
Many people have the habit of talking too much. While this might not be a great cause of concern for someone in their day to day conversations, it can lead to some serious problems when dealing with the IRS. According to Nick, one should give only the information that the IRS asked for. In case you are scared of talking to an IRS employee directly or are not sure of what exactly you should be telling them, you have the right to tell them that you want your attorney to talk to them on your behalf.
2. Never Tell Anything You Know Is Not True
Did you know lying to the IRS is a criminal offence and the IRS can charge you with perjury if it gets to know about it? Well, if you did not then good for you that you know it now. Besides facing criminal charges, some of the other repercussions of lying to the IRS include – heavy penalty and fees, denial for a home loan or mortgage, and triggering of a tax audit. One quick tip – Forget ‘lying’, you should not even tell the IRS anything that you aren’t sure about.
3. Do Not Answer Questions You Do Not Understand
The tax code is so complex that even the tax professionals have to face several tax code related challenges on a day to day basis. So, if you are facing any tax problem or if an IRS employee asked you a question that you do not completely understand fully, do not worry because it is not your fault. Simply tell the IRS employee that you do not know or cannot recall anything and would like your tax attorney to represent you. It is important because the IRS might deny your request for a penalty waiver or abatement if it thinks that you were not honest and upfront when answering their questions.
Want a Free Consultation Session with Nick?
If you are facing an IRS problem and are finding it difficult to deal with the problem, Nick Nemeth offers a free, no-obligation consultation wherein you can discuss your tax problems with him. It is a one-on-one meeting and is completely confidential and private. Once you are done with the meeting you will have an idea of the best options available for you to solve your tax problems. To schedule an appointment, call (972) 426-2553.
