We all want a worry-free tax filing experience. And in truth, taxes are simple when you fulfill your taxpayer duties 100% perfectly, 100% of the time. The thing is that, for most of us, being perfect 24/7 is not reality. We are all prone to forgetfulness, procrastination, and external circumstances getting in the way. That means that we are all at risk of running into one, or a few, IRS tax problems during our lifetime. Understanding what these IRS problems are, why they arise, and how to resolve them is key to a stress-free tax experience!
4 Common IRS problems
- You owe the IRS penalties and fees
- Your tax debt has resulted in a tax levy
- Your tax debt has led to a tax lien
- It’s time to pay your taxes but can’t afford to do so
What ‘Not’ To Do When Up Against IRS Tax Problems
Every year, millions of people face IRS tax related problems, such as unpaid taxes, liens on assets, and various types of penalties for different reasons such as noncompliance, provision of inaccurate information, and late filing. But a letter from the feared agency inevitably leads people to make mistakes that may become costly later on. Continuing on the subject, in this section, we present some common mistakes to avoid at all costs when up against IRS tax problems.
1. Do Not Ignore any IRS Notice
Always keep a good record of all the IRS notices and your replies to each one of them. People usually get into trouble as they tend to ignore the automated IRS notices. Some of these notices are sent to you by mail. Make sure you pick them up or receive them and respond on time.
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2. Do Not Go the DIY Way
Many times, people believe that they will be able to face the IRS officer without any completely wrong guidance. This is why it is always better to get professional help for your IRS problems. Always consult with your tax attorney before your meeting with the IRS, as they will prepare you for the collection interview and guide you on how to present yourself. You will also get to know if the IRS revenue officer attempts to manipulate you. You should be aware that the only job of an IRS revenue officer is to collect money from you on behalf of the government.
3. Do Not Meet the IRS Alone
Your IRS tax attorney must always represent you while you meet the IRS officer. Under the expert’s guidance, you will be able to handle the meeting in a better way and will wind up in better ways.
4. Do Not Assume the IRS’s Actions to be Foolproof
At times, the IRS office also requires some “cleaning” by the administration. As a result, do not agree with them entirely, as the IRS also makes mistakes. Always fact-check before making any move.
5. Do Not Be Unaware of Your Rights
You have the full right to be treated wisely, professionally and courteously by the IRS officer. If you don’t like the way the IRS officer treats you, you can always abort the interview and ask for a word with the supervisor. Also, you have the right to be represented by your tax attorney, who assists you with the proceedings.
While it is essential to avoid the mistakes mentioned above, it is also important to pay the taxes you owe to the IRS. Whether you are based out of Dallas, Fort Worth, or nearby areas, do not wait for the tax problems to shoot up. Reach The Law Offices of Nick Nemeth for expert help.
IRS Tax Problems Aren’t A One-Way Street
Most taxpayers are so used to paying taxes or facing collection actions, interests, and audits that they think the IRS is indisputable, which is simply untrue. The IRS can make mistakes when calculating taxes, and taxpayers can use the Taxpayer Bill of Rights to appeal against the agency’s erroneous decisions. If you are facing any IRS tax problems and wondering what to do about it, the Law Offices of Nick Nemeth can help. In the meantime, we present an overview of how the rights help you protect your interests while dealing with the IRS.
Taxpayers’ Rights
Under the Taxpayer Bill of Rights, adopted by the IRS in 2014, taxpayers have certain rights. The rights are based on the existing provisions in the Internal Revenue Code. Under these rights, taxpayers have the right to legal representation and can challenge the IRS’ position. They also have the right to be informed, the right to privacy and confidentiality, and a just tax system.
Sanction of Higher Authority
The Taxpayer Bill of Rights is not a set of rights enacted by the IRS; the tax agency simply recognizes them. Either Congress or the courts that are the real custodian of the rights and provide teeth to them. That’s why even if taxpayers find the position of the IRS intimidating at times, these rights always grant them a legal sanction to challenge it.
Taxpayer Advocate Service
Closely related to the Taxpayer Bill of Rights is the Taxpayer Advocate Service (TAS). TAS is an independent organization within the IRS, and it has the responsibility to protect the rights of taxpayers by ensuring that they receive fair treatment while dealing with the tax agency. It helps taxpayers understand their rights under the Bill of Rights, and let them know when to exercise them.
Guide to IRS Tax Problem Resolution: Here are Your Options!
Unfiled Tax Returns
If you have any unfiled tax returns from previous years, you must file them as soon as possible. It is, however, important to remember that filing and paying taxes are different. First, you need to file your taxes, and then explore the payment options to find the best way to pay your debts. You can also consult a tax attorney for IRS tax problems. An experienced tax attorney will assess your situation and suggest the best way forward.
Pay Your Tax Debt ASAP!
No matter what type of IRS tax problems you are dealing with, the best thing you can do is pay your debt in full. The faster you do this, the better. The more time that goes by, the more penalties and fees can arise. If you have the funds to pay up your tax debt, do so before getting into more trouble.
Pay The Correct Tax Only
This type of IRS problem resolution involves paying only the real amount of tax debt back to the IRS. In these cases, you’ll have to get a penalty abatement. A tax attorney can help you solve your IRS problems by applying for this penalty abatement, reducing the amount of money you have to pay.
Get An Installment Agreement
If immediately liquidating your tax debt is not an option in your situation, you should consider getting a payment installment agreement with the IRS. A tax law professional can best help you with your IRS problems and help you get this sort of agreement. Tax attorneys will work on your behalf to make sure to get an agreement with payments you can actually manage.
Apply For An Offer In Compromise
If the amount you have to pay to the IRS exceeds your RCP (reasonable collection potential), you can apply for an offer in compromise. In these cases, the IRS can choose to settle your debt due to serious hardship. After you apply, the IRS will evaluate your eligibility for this IRS problem resolution and give you a response.
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Wage Garnishment
If you have unpaid taxes, the IRS can levy your wages or salary, until your tax debt has been fully paid. You can stop such an action by responding to the notices and by providing concrete evidence to the IRS before they put the wage garnishment into effect. The IRS may then modify or release your wage garnishments. If you failed to respond to the ‘Notice and Demand’ or the ‘Notice of Right to a Hearing’, you should seek professional help to get a favorable resolution for your IRS tax problems. Experienced professionals at the Law Office of Nick Nemeth will help you negotiate payment terms with the IRS.
Tax Lien
To recover outstanding taxes, the IRS can claim your property or assets. This is known as a tax lien. A tax lien on a property or an asset can be released only by paying off the outstanding amount that you owe to the IRS. To get a tax lien removed from your property or asset, speak with an IRS tax attorney who can guide you through the different debt relief provisions offered by the IRS.
Do you need help with your IRS tax problems?
If you are facing an IRS tax problem, the best way to tackle it is to consult an experienced tax attorney and make sure that you are following the right path to resolve the issue at hand. At the Law Offices of Nick Nemeth, we seek to find the best resolution to each client’s unique IRS tax problems. We help you navigate through the complex Tax Code. Say goodbye to IRS tax problems. Call us at (972) 426-2991 for a free consultation with Nick Nemeth and his team of experienced tax attorneys in Dallas.