IRS Problem
Many people fear the IRS because it has a rather nasty reputation. If you have an IRS problem, the good news is things have changed in the last ten years.
IRS Problem
If you have an IRS problem, the most important thing is to deal with it. Neither it nor the IRS is going to go away. The longer you wait, the more the penalties and interest will accumulate on what you owe. If the IRS hasn’t tracked you down yet, it will. Again, the key is to deal with it.
An IRS problem can come in many forms. It may be as simple as receiving a correspondence audit wherein the IRS tells you they want more money. In such a situation, you can either send in the additional money or fight the additional assessment. Correspondence audits are hardly a nightmare and the problem can be solved fairly easily. Ah, but what if the IRS is being more aggressive?
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The biggest IRS problem most taxpayers fear is an office audit. An office audit refers to a demand by the IRS that you come see them and bring along documentation supporting some element of your tax return. This is pretty much a nightmare scenario for most people, but it doesn’t need to be. First, there is no requirement that you must personally attend the audit. Instead, you can hire a tax professional to go on your behalf and to handle the IRS. Put another way, you don’t have to physically meet with IRS agents. In fact, you never should meet with an agent because everything you say is evidence against you. Unfortunately, we don’t provide audit services, but there are links on this page to those that do.
Many people fail to deal with an IRS problem because they don’t have enough money to do so. Ironically, this is absolutely the best time to deal with an IRS problem. If you owe the IRS money and are dead broke, you’re in luck. Instead of terrorizing you for years to come, the IRS now has a policy of getting you back in the system. The theory seems to be there is a better return on investment if you are paying yearly than there is in chasing you around trying to get back taxes. This policy is expressed in something called an offer in compromise.
An offer in compromise essentially says to the IRS here is everything I have, here is what I owe, give me a break. If you really have minimal assets, but owe thousands upon thousands in taxes, the IRS will cut the tax bill way down or wipe it completely off the books. Think about that, they may just walk away from the back taxes you owe. Not a bad situation, eh? The mechanics of an offer in compromise are beyond this article and we do not provide the service. Nonetheless, you can look into it and potentially wipe away your IRS problem completely.