6 Common Tax Relief Mistakes
As taxpayers, we all tend to get nervous when dealing with the IRS. Sometimes, we end up ignoring paperwork and phone calls, hoping the problem will ultimately disappear on its own. Then, we get flustered and confused, so we tend to make careless mistakes. However, these mistakes can be quite costly for us as taxpayers. That’s why it’s important to remain vigilant when dealing with an IRS matter
It’s easy to be intimated by the Internal Revenue Service. You might inadvertently give them misleading information in the heat of the moment, or panic and leave out important information. It is always wise to take heed and get professional assistance when dealing with any issues involving the IRS.
Following are some of the most common mistakes that taxpayers make when dealing with tax relief cases. If you simply avoid these mistakes, it will save you a lot of time, hassle, and heartache. – they may save you a great deal of money as well.
1. Assuming the IRS Has “Dismissed” Your Case
If you don’t receive any correspondence or contact for a time from the IRS, it does NOT mean that they have dismissed your case completely. They may be in the process of determining your case, but are waiting to contact you until they have a definitive answer. Unfortunately, there is always a lot of red tape and paperwork involved in tax disputes. Even if you or your representative have filed the proper paperwork, it does not mean you will get an immediate answer.
The IRS deals with millions of tax issues and it may take them some time to get back to you. Be sure not to confuse this with compliance on their end. They will get back to you eventually. Be patient and make any agreed payments in the meantime, to help minimize the amount of penalties and interest that will accrue.
2. Assuming Your CPA Can Handle the Issue
While CPA’s are extremely helpful when it comes to filing taxes, they generally are not the best choice for representation when dealing with back taxes or other tax relief matters.. It pays to seek out and hire a licensed tax relief professional, as they are aware of the nuanced rules, guidelines, and regulations of the IRS. The IRS has been known to use taxpayers’ lack of knowledge about tax laws to their advantage – same thing goes for tax preparers who don’t specialize in Tax Relief matters.
3. Thinking You Can Handle the Issue on Your Own
It’s often difficult to face the IRS alone when trying to resolve back taxes. Sure, you may have had a pleasant “first encounter” with an IRS agent, but that doesn’t mean that they will deal with you fairly throughout the rest of the investigation. Unless you’re trained in tax law and are familiar with the what the IRS can cannot do, you will not be able to go head-to-head with the IRS. Licensed Tax Relief Specialists, such as those at Landmark Tax Group, are qualified to negotiate with the IRS and are up-to-date on current tax laws. You want to ensure that you are getting treated fairly and that your Taxpayer Rights are being upheld. Do not be swayed into going into battle with the IRS without proper tax representation.
4. Getting an Attitude with an IRS Employee
If you get an attitude or act hostile towards an IRS official or representative, it will only hurt your case. You need to treat them with the same respect as you would want from them. It is their job to be tough and demanding, but if you come off as unreasonable and/or refuse to comply with them, it will only make matters worse on your end. This does not mean, however, that the IRS can ask you anything they want. There are rules and procedures that they must comply with.
This is why it’s best that you should not deal directly with the IRS. A licensed Tax Relief Specialist will be able to assist you with all matters relating to your case, including protecting your rights to ensure the IRS investigation isn’t more intrusive than it needs to be. Since the IRS has a history of taking actions first and asking questions later, tax representation by a licensed professional is the best course of action when dealing with the agency.
5. Refusing to Submit Requested Documentation to the IRS
You should just assume that the IRS will be able to get a hold of any record or documentation with or without your consent and/or cooperation, so you should make every effort to submit any and all documentation, paperwork or correspondence requested by the IRS. The key here is to submit only what is required to be submitted.
Failure to submit any required paperwork makes you appear automatically guilty in their eyes, so you want to do everything in your power to get the IRS all of the required documentation. If you cannot find an item the IRS is requesting, your tax representative should be able to provide guidance on what to do. Maintaining a positive relationship while working with the IRS will save you a great deal of time and hassle, as well as potentially save you money in the long run due to more favorable case resolutions.
6. Failure to Comply With a Payment Arrangement
The IRS views any agreement as a one-time arbitration and does not give second chances. Do not fail to make your monthly payments or they will consider your agreement null and void. The IRS will then default your agreement and begin immediate enforced collection on the back taxes, penalties and interest.. If a payment arrangement has been made with the IRS, it’s critically important that you pay the minimum amount due on time in order to stay in good faith with the agency.
If you think you might be eligible for one or more of the above tax relief programs, or would like us to review your tax notices/letters for FREE, contact Landmark Tax Group now for a No-Obligation consultation.”
Not only are we licensed Tax Relief Specialists, we are also former Senior IRS Agents that now serve the best interests of our taxpayer-clients – all we do is handle IRS Tax Relief matters, all day, every day. Speak to us at 1 (949) 260-4770.
If you owe back taxes and would like us to review your tax notices/letters for FREE, contact Landmark Tax Group now for a No-Obligation consultation.