Imagine you get a phone call or an email one day from the IRS. The federal agency informs you that there are some discrepancies with your tax filing, and as a result, they are pursuing action against you.
This scenario is something that everyone fears deep down. No one wants to deal with the drawn-out and tedious antics of the IRS, so there's an immediate tendency for people to ignore requests by the IRS.
We're here to tell you that there are some successful steps that you can take to appropriately, efficiently and effectively deal with the IRS:
- The first step is in relation to the point we just made -- don't ignore the IRS! Always respond to them in a timely manner, and if you are confused by what they are asking for or what you need to do, consult an attorney to help you with it.
- Remember that you have rights when you are dealing with the IRS, and that there is always due process when you are confronted with potential tax penalties. The IRS also has to inform you of your rights in an interview. In this interview, you are allowed to bring a tax attorney with you.
- Even if it is determined that you must pay the IRS, you are highly unlikely to face jail time. In addition, there are some appeals or actions that you can take to remedy the situation -- such as bankruptcy, applying for a hardship exemption, or making an offer in compromise or some other arrangement with the IRS to correct your situation.
Source: FindLaw, "Ten Things to Remember When You Owe the IRS," Accessed Aug. 19, 2015