The Dos and Don’ts of Being in Trouble With the IRS

Dealing with taxes every year can be a source of frustration and confusion, but when you receive notice that you didn’t do something correctly, those feelings can really hit hard. When you’re hit with tax trouble or the Internal Revenue System says your tax mistakes are going to cost you, there are several things you can do and not do to fix the problem.

Do Pay Your Taxes

A lot of people are approached by individuals with claims that you don’t really have to pay taxes. These claims are not true. You do need to pay taxes whether you have a lofty principle against paying or simply don’t feel you owe the government any money. If you don’t file and you don’t pay, you will be in trouble with the IRS, at the very least. Don’t forget that the IRS has a lot of power, and that wins against individuals just about every time.

Do File on Time

If you feel that you can’t pay your taxes, it’s still better to file and not pay than to not file at all. If you can’t pay your taxes, file on time and contact the IRS for information about your options. Late fees are often around five percent of what you owe, and that adds up every month. You may qualify for a repayment plan, so do make sure you file.

Don’t Ignore Communications

When you’re getting a lot of mail from the IRS, it will only make the problem worse to leave the envelopes unopened. Instead, take the time to read and respond to each letter. Even if you can’t make payments or solve the problem right away, it is better to respond to the mail. Not responding will make the trouble worse.

Do Set Up a Repayment Plan

There are some requirements you have to meet, such as having filed tax returns and a total balance of unpaid taxes no more than $50,000. Your current financial situation doesn’t have to be taken into account. It’s a good idea to accept the lowest installment arrangement possible and pay more if you can. Otherwise, you may find that the repayment plan is also out of your reach.

Do Look for Amnesty Programs

These programs may reduce what you owe by forgiving some of your liabilities. However, these programs don’t always apply to your circumstances and may never be available where you are. Don’t plan to use these programs; instead, research them and see if any apply to help you out of existing trouble.

Do Talk to Reputable Sources

There are many tax advisors who could help you file in the first place, may help you negotiate with the IRS, and may help you address future plans. Consultants such as those at the Tax Group Center offer many services, including tax solutions, preparation, and resources. This group has been in business since 2009 and has been providing help to individuals and businesses in tax trouble since that time.

Do Avoid Future Trouble

You could accidentally commit tax fraud without realizing it. This often happens by incorrectly handling refunds and write-offs. Some common mistakes include filling in returns with missing or incorrect information, claiming credits and deductions incorrectly, overlooking income, and becoming a victim to tax preparer fraud. This last mistake should prompt you to be very careful when considering preparers, such as Tax Group Center professionals. The majority of tax professionals are honest, but some will increase their fees by offering you results that are too good to be true. Ask for an IRS Preparer Tax Identification Number and professional credentials.

When you are in trouble with the IRS, take action. Your quick response can save you from heftier fines and serious consequences. Know what you need to do and what you must not do. This information can help you fix the current problem and avoid future issues.