Five Tips The IRS Doesn’t Want You To Know

Author: Ultimate Tax Relief | | Categories: Tax Consultant , Tax Preparation , Tax Resolution

Blog by Ultimate Tax Relief

The IRS ideally projects an image of efficiency and fairness, but as a government agency, it also has to inform the citizens about its inner workings. There is perhaps no entity disliked more than the IRS. Like every government agency, they also have secrets they don’t want you to know. Either because it would make it easier for the agency if people don’t know these details, or because taxpayers can use these tips to get some of their money back. Being informed and remembering that even the IRS can’t be perfect is the first step to dealing with this hurdle. To help you overcome this hurdle, Ultimate Tax Relief has listed five tips the IRS doesn’t want you to know. Keep reading to know what they are. 

Tip #1: Don’t pay IRS penalties
Don’t pay an IRS penalty, at least not without looking into penalty relief. The most common IRS penalties are for not filing your returns on time and not paying them in a timely manner. Most people don’t know how to ask for penalty relief. You can request the IRS for penalty abatement in specific circumstances such as when you prove a specific authoritative exclusion, in case of an IRS documenting error, and if you provide a reasonable explanation backed with facts and circumstances. There is also such a thing as first-time penalty abatement (FTA). It can be used to abate failure to file, failure to pay, and failure to deposit penalties for one tax period, only if you have a clean compliance history for the past three years. Make the most of the penalty relief system.

Tip #2: File all legally required tax returns on time
Taxpayers are required to file their tax returns before the set due date of the assessment year. If they are not filed by a given date, you may face penalties or other consequences. Consequences such as interest on the delay in filing the income tax returns, delayed refunds, etc. On the plus side, you get certain benefits for filing your returns on time, such as being able to claim a tax refund and claim adjustment against past losses. 

Tip #3: You don’t have to live in fear of the IRS
So many people live in fear of the IRS. True, they shouldn’t be ignored, but feared? Not really!. These days they audit less than 2%. And if an actual audit is necessary, you will have plenty of notice. Many people don’t file their returns because they can’t pay their tax bill in full. While it is always better to pay on time, it won’t be such a bad scenario if you don’t. There are various options available which allow you to pay your bill in part. Ignoring your tax bill in fear of the IRS should never be an option. 

Tip #4: You don’t have to talk to the IRS auditor
You can choose to attend and handle the audit by yourself, or hire a tax professional to go in your place. Once you sign an IRS form, it gives your tax pro the ability to represent you. The IRS is then prohibited from contacting you directly. A professional is better equipped to handle a complicated tax situation, will know if the auditor has made a mistake, and will prepare a counter-attack that works in your favor. You won’t ever have to stress or be afraid, just remember to always be truthful and provide all the information your tax professional needs.   

Tip #5: The IRS cut deals
Taxpayers who have a debt they can’t pay can negotiate a debt settlement by choosing an offer in compromise. You have to first show them that it is impossible for you to pay off all your tax within the statute period, and you offer to pay the maximum amount you can afford. A different strategy could be applying for an installment agreement in which you pay a settled amount of money on a monthly basis. Remember, do not lie to the IRS, don’t disclose too much, and only make promises you can keep. Do not set yourself up for failure, and tread wisely. If things start getting bad, simply take a deep breath and inform the IRS agent that you will be seeking representation. 

If you are looking for a tax consultant/tax resolution specialist in New York City, reach out to Ultimate Tax Relief. It was founded by Bernell C. Ward, who has extensive experience in working with individuals and businesses. He has been active in the industry for 30 years. His expertise covers accounting matters, bookkeeping, tax preparation, and other tax-related concerns. He has made his mark as a dependable and efficient professional who will go out of his way for his clients’ satisfaction. His services include bank levy, wage garnishment, IRS audit notification, non-filing of tax return, back taxes, IRS tax liens, IRS offer-in-compromise program, IRS seizure, IRS innocent spouse relief, employer payroll tax problems, and trust fund recovery penalty. He serves clients across The Bronx, New York City, and all over the United States.

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