Nothing ruins a great day like receiving a letter from the IRS stating that you were chosen for an IRS tax audit. You now have an IRS tax problem, so what do you do? Do you toss it in the garbage and hope that your IRS tax problem just goes away? Do you try and handle it yourself or do you seek out professional representation? Should the representative be someone from H&R Block, your Uncle Joe who studied finance in college, or a licensed professional such as an IRS tax attorney or other tax relief professional?
Internal Revenue Service
Compliance with the tax laws in the United States relies heavily on voluntary compliance, or self-assessments, of what tax is owed to the government. Nobody has any sort of duty or obligation to pay one cent more than they owe, but the government wants what it is owed, and it uses the IRS to enforce the laws and obtain what it is legally owed.
The IRS is a very large organization, and can be very intimidating. As of the writing of this article, the IRS employs about 100,000 people, collects over $2.3 trillion in taxes, and has a budget of around $11 billion. Dealing with the IRS can be a very daunting experience for many people since the average person is not a tax expert, feels overtaxed, may not have kept the best records, may have taken aggressive tax positions to lower their tax liability, and may have had their returns prepared by either themselves or someone else who they don’t have 100% faith in.
You might feel like the businessman who right before he died called his best friend over and said, “John, promise me that after I die you will have my remains cremated.”
John responded, “What should I do with your ashes?”
The businessman replied, “Please put them in an envelope and mail them to the IRS and write on the envelope, “Now you have everything.”
IRS Tax Problem
An IRS tax problem is no laughing matter. The government has a lot of tools to collect what it is owed and make you want to pull your hair out. It can use an IRS tax levy to seize your assets, including your home or car, and sell them at public auction. It can also place an IRS tax lien against your assets. It can garnish your wages, retirement funds, and other sources of income, meaning that they will take a considerable amount of each pay check or distribution, leaving you very little to live off. It can also assess interest and penalties for noncompliance or non-payment and even prosecute tax cheats and get them thrown in jail. An IRS tax problem will not go away on its own and must be dealt with.
IRS Tax Attorney
Dealing with the IRS oftentimes involves a game of the taxpayer or the taxpayer’s representative versus the government of the United States. The team with the most experience and knowledge oftentimes wins. Having a skilled IRS tax attorney on your side will let the IRS know that you are serious about getting everything taken care of, that the IRS won’t be able to run all over you, and that you are going to resolve your IRS tax problem.
There are bounds to what the IRS can do, and taxpayers have rights. An experienced IRS tax attorney will be able to remind the IRS of these things, let you know what all of your options are, provide the back taxes help you need, and possibly negotiate an IRS Offer in Compromise, tax debt settlement, or reasonable instalment plan for you. You don't have to face the IRS alone.