The mission of the IRS is to "Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all." The Internal Revenue Service is responsible for collecting over 90% of all dollars collected by the United States Government. Collection of revenue is the core business of the IRS. The IRS is an arm of the federal government and all IRS employees are federal employees. They are paid by the federal government to look after its interest - collection of revenues. As such the collection process of the IRS is designed to extract the maximum amount of money for the government in minimum time from you.
Responding to the IRS
When you receive any letter from the IRS about your returns, it does not mean that you are going to jail. It is best if you start acting immediately, as many IRS letters trigger the running of statutory time limitations. If you do not act within the time period set forth in the letter, you may lose very important rights.
Taxpayer Rights
As a taxpayer you have certain rights when you deal with the IRS. The IRS must explain and protect your rights as a taxpayer throughout your dealing with them. If you are not sure, don't talk to the IRS directly. Any information you provide them may hurt your case at a later stage.
Right to Representation
You are not required to deal with the IRS in person. You have the right to be represented by an authorized person such an as Attorney, a CPA or an Enrolled Agent in your dealings with the IRS. If you are in a discussion or audit and you ask to consult a professional, then the IRS must stop and reschedule the discussion, in most cases. You can have someone accompany you at an IRS meeting. You may make sound recordings of any meetings with IRS examination, appeal, or collection personnel, if you inform the IRS in writing 10 days before the meeting.
How the IRS must Treat You
The IRS must treat you in a professional and respectful manner. The IRS must protect your privacy and confidentiality. If the IRS asks you for any information, you have the right to know why the IRS are asking you for information and how they will use it. Keep copies of all correspondence with the IRS. You need not and should not provide original documents. Copies will suffice. You have the right to know what steps the IRS will take if you do not provide them with the requested information. When you correspond with the IRS, it is generally a good idea to use certified mail. This will help you show that you have responded to the IRS within the required time. You don't have to pay more than the correct amount of tax. If you cannot pay all of your tax when it is due, you can request to be permitted to make monthly installment payments. You can compel the IRS to waive penalties when you can show you acted reasonably and in good faith, or relied upon the incorrect advice of an IRS employee. You can appeal any IRS decision on your tax liability and collection action.
The IRS is coming after you! You owe them money and can't hope to ever pay the debt! The IRS has threatened to seize your bank account or garnish your paycheck! Everything seems hopeless and there doesn't seem to be any doubt that the IRS is going to ruthlessly take everything of value that you have.
However, there are options to rolling over for the IRS. There are IRS tax relief solutions that can allow you to pay a single lesser amount as a settlement, or wipe out your IRS debt entirely. You should be cautioned that the IRS is loath to not collect your full debt. But if your situation is dire and you're afraid that this debt will ruin you and your family, then you may be able to qualify for an IRS tax settlement.
How do you go about convincing the IRS that you shouldn't or couldn't pay the debt you owe them? How do you convince them they should give you and your debt special treatment? It isn't easy, but the best option available to finding a solution to your tax debt may be to obtain the services of an IRS tax relief professional. If you are in over your head asking for help is probably your best bet. Tax relief professionals can provide the legal support and knowledge of the IRS bureaucracy you need to present your case to the IRS. They are positioned to be the most effective in obtaining an IRS tax settlement.
Before you embrace an IRS tax relief expert as your savior with the IRS you should take a deep breath and remember, ?If it sounds too good to be true, it probably is.? Getting professional tax assistance is important when negotiating with the IRS, but it is even more important to get professional tax relief assistance that will offer real solutions and not fantasies. Before you hand over your money to solve your debt make sure you're not just getting into deeper debt. You should always check with the Better Business Bureau and other consumer information groups to make sure you're hiring qualified assistance.
A tax professional may be quick to suggest that you can settle your IRS tax debt for pennies on the dollar with what is called an ?Offer in Compromise?. If that tax professional doesn't know your situation they may be trying to sell you an idea that is very seductive, but can leave you worse off than before you sought their help. An Offer in Compromise can solve your tax debt, but you should be armed with the knowledge of reality versus myth. Below are a few important facts:
?You have to prove to the IRS that you will never be able to pay back the entire tax debt, or prove that paying off your debt would create ?undue hardship?. When you deal with the IRS you are guilty until proven innocent.
?A very low % of all Offers in Compromise are actually successful.
?If the Offer in Compromise is accepted you have to enter into a five year contract with the IRS. You have to file all returns on time and pay any tax debt you may incur during the five year period. Failure to live up to the terms of the contract will result in the entire debt being reinstated and you'll have to owe the original amount plus any additional interest and penalties.
You can get an IRS tax settlement and save yourself from financial and emotional stress. Just remember the old sayings, ??Let the buyer beware? and ?If it sounds too good to be true, then it probably is? while you proceed with finding the right IRS tax relief professional to help!
Both Larry Weinstein & Mansi Gupta are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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